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NLNG Set To Supply Cooking Gas To Nigerian Market To Crash Prices



NLNG set to supply cooking gas to Nigerian market to crash prices

…“Gas, as the cleanest of the fossil fuels, has become an essential energy source to be reckoned with during this energy transition period – Philip Mshelbila

Olushola Okunlade Writes

The Nigeria Liquefied Natural Gas NLNG Limited (NLNG) says it will supply 100 per cent of its liquefied petroleum gas to the Nigerian market to crash the prices of cooking gas.

The NLNG on Thursday in a statement signed by Andy Odeh, the general manager, external relations, and sustainable development, said it will prioritise the domestic market for 100 per cent of its butane and propane production.

It said the move is designed to increase LPG availability in Nigeria, diversify its use and support the federal government’s Decade of the Gas initiative.

According to the statement, NLNG is currently the highest single supplier of LPG to the domestic market, with an estimated 400,000 metric tonnes supplied in 2021.

“The milestone is coming just three months after the company supplied its first propane cargo into the domestic market and has developed a scheme to sustainably supply propane for usage in cooking gas blending as well as in agro-allied, autogas, power, and petrochemical sectors of the Nigerian economy to further deepen gas utilization in Nigeria,” the statement said.

The cost of cooking gas has been on the rise since the beginning of last year.

BusinessEcho Magazine reported how the hike in the prices of cooking gas has forced many women into harmful alternatives such as using firewood and charcoal for cooking.

NLNG set to supply cooking gas to Nigerian market to crash prices

In December, Mele Kyari, the NNPC Group Managing Director, at the inauguration of a 120-metric tonnes LPG storage and bottling plant by Emadeb Energy Services Limited, said the corporation is currently working towards increasing the supply of LPG, in a bid to force down its rising price in the country.

“Two things are in play, one is the supply and the other is the international price of gas,” he said at the time.

“It (price) moves with the price of every other petroleum product including crude oil and its derivatives. So it is a reflection of what is happening in the international market.

“What we are doing is to increase supply. Once the supply is increased the prices will come down.”

Speaking on the development, Philip Mshelbila, the managing director and chief executive officer of NLNG said the announcement marked the company’s strong commitment to the continued growth of the domestic LPG market and its passion to increase utilization of one of the most versatile energy sources in the world.

“Gas, as the cleanest of the fossil fuels, has become an essential energy source to be reckoned with during this energy transition period. Other countries are revolutionizing their energy industry to cut down on carbon emissions drastically. Nigeria should not be left out in this drive, considering its abundant gas resources,” Mr. Mshelbila said in the statement.

He said gas is essential for life and living at the moment because it can support everything we will need to develop our economy and create better living standards for Nigerians. We need to change the narrative, and NLNG is being pragmatic about it.

“We are ardently following up on the commitment we made in March 2021 at the NLNG-sponsored pre-summit conference of the Nigeria International Petroleum Summit (NIPS) 2021 organized by the Federal Ministry of Petroleum Resources to support the Decade of a Gas declaration by the Federal Government. We are driven by our vision to remain a globally competitive LNG company helping to build a better Nigeria and are making a reality of our collective dreams that one day we can switch all cooking fuels to gas, and power our vehicles with gas as encapsulated in the government’s National Gas Expansion Program and the Autogas Policy,” he said.

Committing to this, he said 100 per cent of our LPG supply is a major milestone in our journey of domestic gas supply.

“We supplied our first Butane (LPG) cargo into the domestic market in 2007, which helped to develop over the years the LPG industry in Nigeria from less than 50,000 tonnes to over 1 Million tonnes market size annually by the end of 2020.

“In 2021, we increased our LPG supply commitment from 350,000 metric tonnes (or 28 million 12.5kg cylinders) to actual delivery of 400,000 metric tonnes (or 32 million 12.5kg cylinders) thereby directing most of our products into the domestic market. But this was not enough for NLNG, hence this commitment to do all that we possibly can and supply 100% of our LPG production to the domestic market,” he added.

NLNG is jointly owned by four federal government, represented by Nigerian National Petroleum Corporation, Shell Gas B.V, TotalEnergies Gas & Electricite Holdings, and Eni International.


PIA Provides Enormous Business Opportunities For NNPC Limited – Mele Kyari



GMD NNPC, Mallam Mele Kolo Kyari

PIA Provides Enormous Business Opportunities for NNPC Ltd – Mele Kyari

Olushola Okunlade Writes

As the Federal Government commenced full implementation of the Petroleum Industry Act (PIA) in earnest, the new legislation has been tipped to provide business opportunities that will enable the Nigerian National Petroleum Company Limited (NNPC) to earn more revenue for the country.
Chief Executive Officer (CEO) of the company, Mallam Mele Kyari disclosed this while addressing staff of the organization in a town hall meeting held at the NNPC Towers, at the weekend, with staff outside the Corporate Headquarters (CHQ) participating virtually.
Highlighting the significance of the PIA to the NNPC and by extension the Nigerian economy, Mallam Kyari said the new legislation has raised shareholders’ expectations on the company, even as it has given it a wide room to make progress.
According to the CEO, the PIA had put “all money-making options on the table; it is up to us to take advantage of it”.
He said as a result of the new legislation, NNPC Ltd would not only shed some of its toxic liabilities but will be the largest and most capitalised company in the whole of Africa and, potentially, the most profitable on the entire continent.
The CEO charged employees of the organisation to ensure the company becomes a commercially viable entity and a multi-billion-dollar company that will continuously deliver value to its shareholders–the over two hundred million Nigerians.

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Oil & Gas

OML 17: Heirs Holdings Begins Work On Oilfield



OML 17: Heirs Holdings Begins Work On Oilfield

One year after acquiring a 45 per cent stake in Oil Mining Lease (OML) 17, Heirs Holdings has issued a tender for work on the Elelenwa multi-phase pump gathering station.

Heirs Holdings acquired the 45 per cent stake from Shell Petroleum Development Company (SPDC), Total E&P, and Eni. The Nigerian National Petroleum Corporation (NNPC) holds the remaining 55 per cent.

Heirs Holdings Oil and Gas said it was seeking interested and pre-qualified contractors for the work. The contractor will carry out the work under an engineering, procurement, installation, and commissioning (EPIC) contract.

The scope covers work through to start-up of a pump gathering station for good fluids from the Elelenwa West manifold and flows to the Agbada-1 flow station for processing. The Agbada field is in the middle of the license, while Elelenwa is in the south, close to Port Harcourt.

Scope includes a mini front-end engineering and design (FEED), followed by a detailed engineering design. Work will also include the provision of a schedule, site surveys, and power generation. The supplier will also provide two years of operational spares, deliver the pump and other facilities to the site, carry out performance testing, and finally hand over.

The company requires interested bidders to be pre-qualified in the NipeX joint qualification system database. They must also submit details on how they will comply with local content requirements. Bids must include commercial and technical tenders at the same time.

Heirs Holdings’ purchase from the three IOCS in early 2021 included Schlumberger as a technical partner, while Shell’s trading arm is an off-taker. The financing involved United Capital, Afreximbank, ABSA, Africa Finance Corporation (AFC), Union Bank of Nigeria, Hybrid Capital, and Amundi. Standard Chartered acted as global coordinator.

OML 17 currently produces 30,000 barrels of oil equivalent per day. It has 2P reserves of 1.2 billion boe, with another 1bn boe of exploration potential. The company has said infrastructure in the area could allow the production of 200,000 BPD of oil and 300 million cubic feet per day of gas.

The oil company had in May 2021, appointed Osayande Igiehon as CEO, joining the company from Shell. Heirs Holdings’ Chairman, Tony Elumelu, is also chairman of the oil unit.

Igiehon while speaking on his appointment, said ‘‘Heirs Holding Oil and Gas represented an “extraordinary opportunity to create Africa’s first true integrated energy company, with a mission to ensure that Africa’s natural resources are directed toward value creation in Africa, powered by sustainable, robust and abundant African energy”.

It appointed senior executives in August, including CFO, Samuel Nwanze, and a number of former Shell employees.

Heirs Holdings has plans to cut flaring and increase power generation. The company had said OML 17 will “drive an integrated energy strategy to deliver the benefits of meeting energy demands while improving labour productivity in the country”.

Source- The Sun Newspaper.

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Minor Fire At Port Harcourt Refining Company Put Out, No Loss Of Lives





Olushola Okunlade Writes

The Port Harcourt Refinery Company in Eleme Local Government Area of Rivers State were disrupted following a minor fire incident that lasted for less than an hour has been put out.

The minor fire incident occurred at the Port Harcourt Refining Company (PHRC) at the early hour of today, January 01, 2022.

The incident, which was contained in less than two hours was caused by a spark while a 33,000-liter truck was discharging naphtha into a tank at the PHRC.

Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPC Informed ROTA MEDIA “There was a minor fire incident and it was immediately contained. So no loss of lives or property.”

The management of the refinery led by the Managing Director, who was at the scene supervising the operation, immediately mobilized the safety structure at the PHRC and with support from the Federal Fire service, successfully brought the fire under control.

The management of the PHRC wishes to reassure Nigerian residents in the neighborhood of the facility that they have no cause to worry about the incident and to also affirm that the safety of life and of property is at the top of its priority list.

The incident affected only the discharging truck and the pump bay. No other property was damaged.

The management and staff of the PHRC hereby extend their profound appreciation to all those that contributed to bringing a speedy end to the incident; while wishing all Nigerians a very happy and fulfilling New Year 2022.

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