Business
NNPC: We need $2.7bn investment to stabilise petroleum products supply
Nigeria will require about $2.7 billion worth of investment to enable it to meet the rising demand for petroleum products and stabilise the supply process, the Nigerian National Petroleum Corporation has said.
Group Managing Director of NNPC, Mele Kyari, stated this on Tuesday in his keynote address at the 15th Oil Trading and Logistics, Africa Petroleum Downstream Expo 2021, held in Lagos.
According to him, about $3.097 billion investment opportunities exist in condensate refineries, while $1.6 – $2.7 billion is required by the NNPC to improve the supply and distribution of petroleum of products.
He said this would also be used to revamp Liquefied Petroleum Gas infrastructure and build Compressed Natural Gas plants.
Kyari, who was represented by Group Executive Director, Downstream of the NNPC, Mr Adetunji Adeyemi, said that Nigeria needed a refining capacity of about 1.52 million barrels per stream day (MBPSD), from the current 445,000 barrels per day, to meet its petrol requirement in the next four years.
“The NNPC Refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running at 60 per cent capacity respectively would supply 76 per cent of Nigeria’s PMS requirement.
“This will leave a shortfall of about 17 million litres of PMS daily. NNPC is adding 215,000 BPSD of refining capacity through private sector-driven co-location at the existing facilities in Port Harcourt Refinery and Warri Refinery respectively.
“Modular refineries are also adding capacities such as the 5,000 BPSD Walter smith refinery which will be upgraded to 50,000 BPSD.
“Additional 250,000 BSPD is expected to come from the Condensate Refineries through the private sector partnership.”
Kyari also said, “Key pipeline projects are ongoing to assure delivery of the gas to the demand nodes. The Obiafu-Obrikon-Oben (OB3) project which brings gas from East to West is nearing completion. The 614km Ajaokuta, Kaduna, Kano (AKK) project, which was inaugurated by Mr President in June 2020, is progressing very well.
“These could add up to $40 billion to annual Gross Domestic Product and create additional six million jobs.”
Also speaking, Governor Babajide Sanwo-Olu of Lagos State, said Nigeria needed to reposition its oil and gas sector due to the global energy transition.
The governor, who was represented by Mr Olalere Odusote, the State Commissioner for Energy and Mineral Resources, emphasised the need for more collaboration among stakeholders.
He said, “The Lagos State Government is ready to drive the institutional framework that will provide a conducive, investor-friendly environment to encourage and support private sector investments.
“Lagos State plays a pivotal role in the Nigerian economy as the Nation’s commercial nerve centre and remains the focal point of the country’s economic activity.
“The state government is fully committed to supporting private-sector innovations targeted towards driving sustainable economic growth and making the state become a 21st century, low carbon economy.”
Business
Ortom suspends mining activities in Benue to curb insecurity
Benue State Governor, Samuel Ortom, on Thursday ordered the immediate suspension of mining activities in the state as a means of curbing security threats emanating from that area.
He gave the directive at the meeting held with Kwande stakeholders at the Benue State Government House, Makurdi.
The governor said the activities of miners were already posing threat to the peace of the state.
He said that the state government would set up committees at state, local government and ward levels to regulate the activities of the miners.
He said, “Recent events in the Kwande Local Government Area are posing danger and threat to the peace in council and the state in general and this is as a result of mining activities in the area.
“We know that there are some miners with licences from the Federal Government because it is the responsibility of Federal Government to grant licences.
“We know that some of the miners don’t have licences; we have foreigners and indigenous ones among them.
“As a result of the danger the activities of the miners pose in the state, we hereby suspend all mining activities in the state including those with licences.
The governor asked all licensed miners to register with the state Ministry of Land, Survey and Solid Minerals.
Business
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Business
Niger, Benin, Togo Owe Nigeria N5.8bn For Power In 2020 – Report
The Republic of the Niger, Republic of Benin and Togolese Republic did not pay a N5.86 billion electricity debt in 2020 from an invoice of N16.31bn issued to them by the Nigerian Electricity Market (NEM) for the year.
According to the report for 2020 released by the Nigerian Electricity Regulatory Commission (NERC), the companies for each of the countries are Societe Nigerienne d’electricite (SNE), Societe Beninoise d’Energie Electrique (SBEE) and Compagnie Energie Electrique du Togo (CEET) respectively.
The remittances showed that the Nigerian Market Operator (MO) gave the countries N16.31bn from which they paid N10.45bn for the services received from MO, while N5.86bn was outstanding.
Ajaokuta Steel Company Ltd, termed a special customer in Nigeria, and its host community did not pay anything after consuming N1.08bn worth of electricity in the year. The invoice from Nigerian Bulk Electricity Trading (NBET) to the company was N930m, while that of MO was N150m. NERC recommended in the report that, “MO and NBET must activate the relevant safeguards against continued non-settlement of market obligations by these market participants.”
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Also, in 2020 NERC issued five new generation licences and renewed three others which would add 667.70 megawatts (MW) to the grid. The new licences can add 235MW while the renewed licences were for 346MW capacity of electricity generation. It also gave approval to 33 Meter Asset Providers (MAPs) and certified 17 Meter Service Providers (MSPs).
On metering, the report indicated that 537,400 meters were installed for consumers in 2020, a 60.4 per cent higher figure than the 334,896 meters installed in 2019.
Despite this, the huge metering gap for end-use customers is still a key challenge in the industry. Registered customers grew to 11,841,819 (11.8m) in 2020 but just 4,666,191 (4.6m) or 39.40 per cent of them were metered.
“Therefore, 60.60 per cent of the registered electricity customers are on estimated billing contributing to apathy toward payment for electricity bills,” it stated.
Daily Trust
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