Tag Archives: Gas

Forcados trunkline attack responsible for Nigeria’s gas supply shortage – NPDC

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The scarcity of gas being experienced across Nigeria has been attributed to last year’s incessant attacks on the Forcados trunk line.

The Nigerian Petroleum Development Company, NPDC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, disclosed this on Sunday.

“The pulverization of the Forcados trunk line by militants in 2016 gravely impacted gas production by NPDC and its JV partners”, a statement by NNPC spokesperson, Ndu Ughumadu, quoted the Managing Director of NPDC, Yusuf Matashi, as saying.

“This primarily led to a loss of about 70 per cent of NPDC’s crude oil production capability which had an effect on gas production.”

Mr. Matashi, the statement stated, explained that gas production in the company’s area of production was associated with the crude oil it produced, adding that by the time the crude was shut in the oil well, much gas was shut in the process.

“That is why we now see the level of gas supply shortage for power generation,” he said.

The NPDC boss also noted that though other operators might have other reasons for the shortfall in gas supply in their domain, the damage of the Forcados export terminal supply line was the biggest obstacle to the production of gas by the NPDC and its JV partners.

He however pledged that the company would increase its gas production by 50 per cent when the Forcados line was back on stream, noting that within the last one year, the company had struggled to mitigate the effects on its production.

He also disclosed that the impact of the attack was immeasurable.

Commenting on NPDC’s local content compliance level, the managing director noted that as an indigenous exploration and production company, the company operates in compliance with the letters and spirit of the provisions of the Nigerian Content law in the oil and gas industry.

NAN: Abuja Residents resort to Charcoal, Wood amidst Gas, Kerosene Price Hike.

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Some Abuja residents are now using firewood and charcoal for cooking following the astronomical increase in the price of kerosene and cooking gas.

A survey by the News Agency of Nigeria, NAN, in the Nigerian capital on Wednesday revealed that the residents resorted to seeking other options because they could not afford the cost of kerosene and cooking gas.

NAN gathered that some residents have abandoned their gas cookers and opted for charcoal pots, whose prices have also been increased as a result of high demand.

A 12.5kg of gas initially sold for between N3,500 and N4,000 now goes for N6000 to N7000, while 5kg initially sold for between N1,700 and N1800 now goes for N3000.

Also, the price of kerosene per litre has risen to as much as N400 in many markets and other retailers’ outlets.

A resident of Gwagwalada, Juliet Uzoagba , said that with the high price of gas, she could no longer afford the product, adding that she has opted for the use of coal.

She said that she has a large family and cannot cope with buying the gas at N7, 000 which would not last for 2 months.

“I cannot cope with the recent price of gas; the product keeps increasing on daily basis. I have resorted to the use of charcoal and firewood.

“I have enough space in my compound where I can use them. Although it is not convenient for me, I have to manage in order to attend to other family needs’’ she said.

Nelson Odega, a civil servant, said that since January, he has moved from the use of gas to charcoal as a result of increase in price of the product.

He said that initially he was using gas and electric cooker but with the poor state of electricity in the county, he had no choice but to resort to the use of charcoal.

Mr. Odega, also complained that the price of charcoal is gradually increasing as a result of high demand for the product by the residents.

Maryam Abubakar, a house wife, said that the economy of the country has pushed her to the use of charcoal which she would not ordinarily ever think of using.

She lamented the time and energy spent in making the charcoal, adding that it was not convenient and healthy for her.

“I do not like the use of charcoal; it is too stressful and can make the house dirty. But I have no choice because of the economic situation in the county.

“I pray things get better; life has become so hard for many people in recent times. I pray our Government look at the sufferings of the masses and find a lasting solution to it,” she said.

Meanwhile, a check on the price of charcoal shows that the price is still very high as result of high demand.

Pius Ofoegbu, who sells dried fish, said that the price of charcoal has increased tremendously compared to what it was in 2016.

He complained that the increase in the price of charcoal has affected the price of his commodity.

Mr. Ofoegbu said that a bag of charcoal which was sold for between N1400 and N1500 as at 2016 now sells above N2, 500.

 

Source: NAN

NNPC to set up oil and gas museum in Oloibiri

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The Nigerian National Petroleum Corporation (NNPC) on Thursday unveiled plans to set up an oil and gas museum in Oloibiri, the historic town where oil was first drilled in Nigeria.

This was disclosed by Bello Rabiu, NNPC chief operating officer, Upstream, who said it was part of plans to increase government revenue.

NNPC presented the Act to establish the National Oil and Gas Museum and Research Centre in Oloibiri, and recommended the construction of the museum with clear budgetary allocation from the federal government under the control and management of the National Commission for Museum and Monuments.

“It is better to refine and upgrade the capacity of the Petroleum Training Institute, in Warri and the National College of Petroleum Studies, Kaduna, in order to avoid duplication of functions and more importantly ensure optimal utilization of funds,’’ NNPC said.

Oloibiri had been the centre stage for Nigeria’s oil revolution after it moved away from agriculture.

Oil was first drilled in Oloibiri in 1956 before the nation’s independence.

Army foils Avengers’ attempt to bomb gas facility, kills two.

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The Joint Military Force deployed to the Niger Delta, Operation Delta Safe, says it successfully repelled an attack by Niger Delta Avengers at a gas facility in Delta State and killed two pirates in ongoing operations in the region.

A statement by Lieutenant Colonel Olaolu Daudu, the spokesman of the Joint Force, made this known in Bayelsa State on Tuesday.

Daudu said the operations were carried out between Saturday and Tuesday.

He said: “Troops deployed at Delta State while on watch at the Nigeria Gas Company Outpost in Batan/Egwa Area of Warri South West Local Government of Delta encountered suspected militants who claimed to be members of Niger Delta Avengers.

“They came in two 200 Horsepower Speed capacity boats but were subsequently engaged and repelled. Effort is ongoing to apprehend the criminals.

“Troops also rescued a Passenger boat from sea robbers at Idoro River in Ozobo Community, Bomadi Local Government Area of Delta State.

“While trying to escape, the sea robbers’ boat collided with that of the passenger boat and capsized.

“Four of the suspected sea robbers were arrested however, four locally made double barrel guns belonging to the suspects fell into the river.

“Efforts are ongoing to recover the guns while suspects are in custody for further investigation. They are presently in custody for further investigation.”

Daudu also said that troops on patrol at Asugbo Tibigbene and Beneth River Warri South Local Government Area impounded a wooden boat carrying 53 drums of illegally refined substance at Asugbo.

Also, troops, while on clearance operation at Yorkiri, Obotobo, Chamomi Creek Okerenkoko and Open River, arrested a Cotonou boat conveying Jerrycans for possible loading of substance.

The Spokesman said that in another development troops arrested a 21-year-old man, Usman Jafar, an indigene of Adamawa State, who had been parading himself as a serving soldier.

The suspect allegedly robbed Atima Aghogho along Ajanuga Road and the following items were also recovered from him: one fake Nigerian Army Identity Card, one First Bank of Nigeria ATM Card and an iPhone belonging to one of his victims.

Daudu said: “Following a tip off, troops in conjunction with members of Petroleum Task Force conducted a raid at Ifieporo community in Warri South Local Government and discovered an area used or storage of stolen petroleum products

“Other items discovered are several rubber drums and Jerricans containing substance suspected to be illegal oil bunkering mats.

“Troops also recovered a black coloured Audi vehicles loaded with several water proof bags containing substance suspected to be products of illegal bunkering.

“Following another tip off troops discovered four identified hideouts used for storing substance suspected to be illegally refined Automated Gas Oil around Ohoro junction, Ughelli North Local Government Area of Delta State.

“No arrests were made while troops are on the trail of the perpetrators.”

Daudu also said that on Tuesday the troops arrested one suspected bugler, while on routine check, with N136,000 cash, one Infinix Note II handset and one other handset.

He said the items and the suspect would be handed over to the Nigeria Police.

He said: “Troops at Batan reported a loud sound suspected to be an explosion.

“Further findings revealed that a Barge carrying equipment used for the repairs of the Trans Forcados Pipeline at the repair site in Eweregbene community was blown by suspected Niger Delta Avengers militants who retreated after troops repelled the attack.

“However, two un-exploded dynamites were found at the scene on a branch and swamp buggy were successfully detonated by troops.”

Power: FG signs $112m gas supply agreement with Seven Energy.

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Efforts to bridge gas supply gap to power generation companies has led to the inking of gas supply agreement between the federal government and Seven Energy International Ltd.

The $112 million Partial Risk Guarantee (PRG) agreement is expected to enhance supply of natural gas to the Calabar NIPP.

The gas, under the agreement, would be delivered by Seven Energy’s subsidiary Accugas, to the 560 MW Nigerian Integrated Power Project (NIPP), Calabar, Cross River State.

The Partial Risk Guarantee is a financial instrument that will secure the supply of up to 130 million cubic feet per day (“MMcfpd”) of natural gas to NIPP Calabar, thereby enabling the consistent generation of an additional 560 MW of electricity to the national grid, approximately 20 percent of current power generation in Nigeria.

This arrangement, which guarantees payments to Accugas for gas supply, is backed by the Federal Government of Nigeria and the World Bank.

It will be the first of its kind for gas supply in Nigeria and is a demonstration of the Federal Government’s commitment to increasing power supply in the country and stabilising the ‘gas to power’ value chain.

Commenting on the agreement, Vice President, Professor Yemi Osinbajo said “I must say that this is a very significant event for us and as we all know this is the first PRG for gas that we are signing. We know that it will encourage investment in gas infrastructure and we are certainly looking forward to the multipliers that will come from it”.

The Vice President commended Seven Energy for completing the 69 km, Uquo to Creek Town pipeline which will provide a continuous flow of natural gas from the Uquo Field in Akwa Ibom state to NIPP Calabar in Cross River state and add up to 560 MW to the national grid.

Since FG won’t sell NLNG, Dangote acquires gas processing company in Netherlands

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Dangote Industries Limited (DIL) has completed the acquisition of Twister B.V., a gas processing company headquartered in the Netherlands.

Twister B.V. used to be owned by Shell Technology Ventures Fund 1, before its recent acquisition by DIL along with its partner – First E&P.

A statement yesterday from DIL said the acquired company would help design and build the gas plants which would be critical in processing gas from oil fields for transportation via Dangote’s planned subsea pipeline (EWOGGS) for ultimate consumption by various industries and power plants.

Aliko Dangote, President & CEO of Dangote Industries Limited said, “This was an important acquisition for us. Twister’s cutting edge gas processing technology is fundamental to delivering our strategy to unlock about 3bcfd of gas in order to meet Nigeria’s gas needs.”

Twister’s CEO, John Young said, “We are delighted in the confidence DIL and First E&P have shown in Twister to be their core provider of gas separation solutions. After a very thorough due diligence our technology has been recognised as a key enabler to reduce gas project costs which is crucial in this current environment. We are excited to be part of the Dangote family of companies.”

It would be recalled that the refinery and fertilizer projects of Dangote Industries Limited are reported to have the capacity of creating a minimum of 235,000 new jobs – both direct and indirect jobs – as it becomes operational in the first quarter of 2019.

Aliko Dangote, who revealed this recently, also stated that the projects would cost a minimum of $17 billion.

Dangote said the $12 billion refinery would have a capacity of 650,000 barrels a day.

He assured that there would be market for the refined products because even in Africa, only three countries had effective functioning refinery with others importing from abroad.

He said: “Our refinery will be ready in the first quarter of 2019. Mechanical completion will be end of 2018 but we will start producing in 2019.”

When the projects fully take off in 2019, Dangote said it would help the country save $5 billion spent on the importation of oil into the country.

Ghana Begins Fuel Exports To Nigeria

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Ghana has started exporting fuel and gas oil to the landlocked countries of West Africa.The state-owned Bulk Oil Storage and Transportation Company (BOST) Limited, is also supplying petroleum products from the same depot to Benin Republic and Nigeria. Ghana’s Minister of Petroleum, Mr Emmanuel Armah-Kofi Buah, who made this known at the meet-the-press series in Accra, said there were plans to extend the exports to Liberia in the coming months.

 

The minister said the vision of the government was to make Ghana the hub for the distribution of petroleum products in the West African sub-region.The Bolgatanga Petroleum Depot, with a capacity of 46 million litres of refined gasoline and gas oil, was re-inaugurated in August 2015.

 

Buah said Ghana had been ushered into a new gas era that would guarantee its energy security for the next two decades. “Despite the global downturn in the oil industry, we have managed to increase production“, Buah said. Ghana’s strategic stock was at an all-time high, with about one million metric tonnes of petroleum products IMPORTED from January to June 2016.

 

Ghana is planing to become the major marketer of refined petroleum product inWest Africa and we here in Nigeria are the giant of Africa with Nothing to show for it.Imagine Ghana achieving this feet with IMPORTED petroleum product and I wonder what is wrong with Nigeria before you export anything out of a country that means you have enough to give out.

 

We have more than four refineries in Nigeria and we can’t even produce enough product for our daily consumption.

Nigeria Will Lose $25bn To NLNG Act Amendment – Omotowa

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The outgoing Managing Director and Chief Executive Officer of the Nigeria LNG Limited, Mr. Babs Omotowa, has said the proposed amendment of the NLNG Act of 2004 will cost the country over $25bn in foreign direct investment and fines running in billions at international courts.

Omotowa said any tinkering of the Act would violate bilateral agreements with international investors.

He stated this on Thursday in Lagos at the National Association of Energy Correspondents’ Annual Conference.

Omotowa, who was the chairman at the event, has been the Managing Director for NLNG for some five years and will be handing over to incoming MD, Tony Attah, on September 1, 2016.

He said the NLNG, through its expansion growth programme, which involves the expansion of production capacity of the LNG plant in Bonny, Rivers State, with a Train 7 and 8, could attract $25bn.

He said it could create 30,000 construction jobs, help to further reduce gas flaring, and generate over $1bn to $2bn additional revenue to the country in taxes and dividend.

Omotowa said, “In a period of huge youth unemployment and need for more revenue, this should really be a cause we should have all hands on deck for, especially as NLNG has demonstrated its pedigree having attracted $15bn in foreign investment, grown from a two-train to a six-train plant, contributed to reducing gas flaring from 65 per cent to below 20 per cent, delivered $33bn to Nigeria from a $2.5bn investment.

“This potential $25bn in investment, creation of 30,000 jobs, reduced gas flaring, among others, are being put in jeopardy by attempts to renege on promises that Nigeria gave to foreign investors that enabled the historical $15bn investment historically attracted.”

Omotowa said while the executive had demonstrated full commitment to the need to keep the sanctity of the NLNG Act, the attempt by the legislature to amend the clear promises made to investors would cost the country quite a lot.

He said, “Apart from the relocation of investments in excess of $25bn to other countries, Nigeria will also be opened to fines running into billions of dollars in International Courts for reneging on agreements.

“Such incentives in the NLNG Act are normal in the LNG world including in Qatar, Oman, Malaysia, Angola, etc. Even in Nigeria, more generous incentives are contained in legislation such as the Oil & Gas Free Trade Zone Act,” he said.

NLNG is owned by four shareholders, namely, the Federal Government, represented by the Nigerian National Petroleum Corporation (49 per cent), Shell Gas BV, SGBV, (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International (10.4 per cent).

http://punchng.com/nigeria-will-lose-25bn-nlng-act-amendment-omotowa/

Nigeria Cuts Off Gas Supply To Ghana

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Nigeria has suspended the flow of natural gas to Ghana over unpaid bills, local media reported on Wednesday, saying an amount of some USD 180 million was outstanding.

News outlets reported that Ghana’s state-owned Volta River Authority owes N-Gas, which in turn is in arrears to the West African Pipeline Company, the operator of the conduit that transports gas from Nigeria to Benin, Togo and onwards to Ghana. The latter’s arrears have been building since October 2015, and the Ghanaian government subsequently missed its February 2016 payment deadline.

Credit: Sun

Food Security: No One Eats Oil Or Gas- Adesina

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The president of African Development Bank (AfDB), Dr Akinwumi Adesina, has emphasised the importance of agriculture and food security to the growth and development of Africa.

Speaking at a high level conference on agricultural transformation themed ‘Feeding Africa,’ Adesina said nothing is more important than food, noting that while Africa had risen on the back of new discoveries of oil and gas fields, in reality, no one eats oil or gas.

He stated, “People eat food. Access to food in quantity and quality is a fundamental human right. Just few weeks ago at the United Nations General Assembly, the world took a bold decision to approve the Sustainable Development Goals. In my meeting with the UN secretary general, Ban Ki-moon, he told me: ‘The SDGs must succeed in Africa. If they do not succeed there, they cannot be said to have succeeded’.

“Africa is clearly the continent on the rise. Six of the 10 fastest-growing economies in the world are in Africa. Real income has risen by 30 per cent in the last 10 years. Foreign Direct Investment has risen to $64 billion, while remittances have reached $56 billion, exceeding total official development assistance.”

Credit: Leadership

Nigeria, Ghana Resolve Dispute Over Unpaid Gas Bill

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The Ghanaian Government said it would pay a Nigerian gas consortium 170 million dollars it owed by February, apparently resolving a dispute that led the consortium to threaten to cut supply.

Ghana’s state power generating company, the Volta River Authority, will settle the debt to Nigeria’s N-Gas in three tranches starting in November, said Kweku Sersah.

He is a spokesman for Ghana’s Ministry of Power. Sersah also said that the terms were still being finalised.

“The high-powered delegation that went to the Nigerian capital Abuja was able to negotiate for Nigeria Gas (N-Gas) to continue to supply the country the needed gas,” Sersah said in a statement.

Ghana’s government has promised to end crippling power blackouts by the end of the year. According to media report, Ghana gets around 25 per cent of its power through gas from Nigeria.

The threat by N-Gas to reduce supplies by 70 per cent would have made it harder to achieve the government’s goal of tackling blackouts and raising the cost of supply.

The issue is sensitive in the run-up to Ghana’s election next year that is expected to be closely fought. Power cuts have angered voters.

Nigeria Produces 95,471 Metric Tonnes Of Gas

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Nigeria’s gas production has declined by 5.56 per cent to 237.40 billion standard cubic feet of gas (BSCF) in the month of June this year.

The country flared about 17.15 per cent of the total gas production during the month under review.
Latest Nigerian National Petroleum Corporation (NNPC) monthly report released recently, disclosed that the total Natural Gas Liquid (NGL) produced for the month of June 2015 was 95,471.0 metric tonnes.

It said that out of the total gas produced, Mobil had about 48,490 metric tonnes and NNPC, 46,710 mt while a total of 76,008 MT was lifted for the month.

The report stated that this month, 569.84 thousand barrels of crude oil was received by Warri Refining & Petrochemical Company (WRPC), Port Harcourt Refining Company (PHRC) had an opening stock of 974.47 thousand barrels while total crude oil available for processing was 1,544.31 thousand barrels out of which zero barrels was processed.

Read More: ngrguardiannews