Connect with us

Energy

NNPC Plans To End Petroleum Products Diversion Begin

Published

on

GMD NNPC, Mallam Mele Kolo Kyari

The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the new week with a meeting with major marketers of petroleum products in the nation’s downstream sector.

The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid the diversion of petroleum products.

The meeting which was held at the NNPC Towers, Abuja, had in attendance the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and Independent Marketers, on the need to curb products diversion.

The Group Executive Director, Downstream who was represented by the Managing Director (MD), Petroleum Products Marketing Company (PPMC), Mr. Isiyaku Abdullahi, said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce the burden of high evacuation costs on government in terms of under-recovery.

Abdullahi said that the company was concerned that in spite of the high truck-out of Premium Motor Spirit (PMS) from depots across the country, the market was still experiencing shortfalls, noting that diversion of products had been identified as a likely reason for the gap.

He appealed to the marketers to activate the Corporate Social Responsibility (CSR) component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria.

Abdullahi stressed that such a gesture would help in cushioning the effect of the current global energy crisis.

On his part, the Executive Secretary of MOMAN, Mr. Clement Isong, said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products, especially at a critical time when the world faced inflationary problems.

Speaking in a similar vein, the Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, expressed satisfaction with the outcome of the meeting, assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country.

Meanwhile, the NNPC Ltd. cautioned that the current price volatility in the global energy was likely to worsen if banks and other financial institutions continue to avoid funding gas projects.

The Group Managing Director/Chief Executive Officer of NNPC Ltd., Malam Mele Kyari, gave the warning at the 28th World Gas Conference 2022 which was held in Daegu, South Korea.

Kyari who spoke against the backdrop of stifling funding for new oil and gas projects due to environmental concerns said: “In many jurisdictions, gas is nearly always associated.

“So, you have to turn the table to see if you can get non-associated gas so that banks and financial institutions can put their money into it.

“If that doesn’t happen, then you sure have the constraints of financing and the opportunity will now turn into a crisis.

“I think that is what we are trying to solve to see how we can turn this so that the facility that we are building or the facilities we are going to build will have enough gas to process and deliver into the market.

“Honestly, it is a huge opportunity for the financing sector, I know for sure in our own perspective we have seen a number of projects that can come up very quickly.

“Mostly, the LNG facilities where you can convert gas to chemicals and these are really coming up in their numbers across many National Oil Companies (NOCs) that I am aware of.

“The immediate future is getting the right financing, the right mix, and also for the financial institutions to recognise that except they invest today, what we are seeing today in terms of pricing can be something much more to manage in the next two-three years to come.”

Kyari said the NNPC Ltd. was not averse to the push for carbon neutrality, adding that funding gas projects were a vital decision to be made to avert future crises.

At the 26th Conference of Parties (COP26) which was held in Glasgow, Scotland in 2021, African countries advocated for energy justice in the drive for transition to cleaner fuels.

In another development, the NNPC Ltd. set a record as the first exploration and production company to acquire environmental audit certification in the Federal Capital Territory, Abuja, since the Environmental Impact Assessment (EIA) law was established about 30 years ago.

The attainment of this feat by the Company was disclosed by the Permanent Secretary of the Federal Ministry of Environment, Mr. Hassan Musa, during the presentation of a certificate of Environmental Audit to the NNPC at the NNPC Towers, Abuja.

The Permanent Secretary who was represented by the Director, Environmental Assessment, Dr. Abbas Suleman, commended the NNPC for its consistency and commitment to environmental global best practices.

Hassan stated that though environmental audit was a legal requirement by federal law, the bold step taken by the current NNPC Management to carry out an environmental impact assessment of the NNPC Towers reinforces the company’s reputation as a law-abiding and responsible corporate citizen.

Narrating his experience with the company during the audit exercise, the Permanent Secretary said that he saw firsthand the Management’s commitment to performance excellence, adding: “NNPC does its things gently, quietly, and steadily with the whole idea of achieving positive results”.

Speaking at the event, the Group Executive Director (GED) Corporate Services, Mrs. Aisha Katagum, who was represented by the Group General Manager, Human Resources, Mr. Yinusa Yahaya, appreciated the Federal Ministry of Environment for the honor of implementing the audit process.

She also appreciated the award of the certification to NNPC, especially at this crucial stage of the Company’s transition from a corporation to a limited liability company.

Still, in the week under review, the NNPC Ltd. and its partner, Sahara Group, took delivery of two 23,000cubic meters of Liquefied Petroleum Gas (LPG) vessels for their joint venture company, WAGL Energy Ltd.

The event which was held at the Hyundai MIPO Shipyard in Ulsan, South Korea, also witnessed the official naming of the vessels as Mt Sapet and Mt BaruMK.

Speaking at the occasion, the GMD/CEO of NNPC Ltd., Malam Mele Kyari, said the investment in the LPG carriers was part of efforts to deepen domestic gas utilization in keeping with the Federal Government’s aspiration to use gas as the linchpin to drive the nation’s economic and industrial growth.

He disclosed that an order for three additional new vessels was at an advanced stage, adding that “we have a target of delivering 10 vessels over the next 10 years”.

On his part, the Executive Director of Sahara Group, Mr. Temitope Shonubi said WAGL successfully operated two mid-sized LPG Carriers – MT Africa Gas and MT Sahara Gas in the region and had delivered over six million CBM of LPG across West Africa, while keeping to global standards.

“With the new vessels, we are set to promote and lead Africa’s march towards energy transition,” he said.

The two new vessels, Mt Sapet and Mt BaruMK, were expected to sail out in June and September 2022 and would increase WAGL’s total fleet to four.

All four vessels were built by Hyundai MIPO Dockyard, a foremost global manufacturer of mid-sized carriers.

WAGL Energy Limited is a joint venture company between NNPC and Oceanbed (a Sahara Group Company) which is driving NNPC’s five-year $1 billion investment plan announced in 2021 to accelerate the decade of gas and energy transition agenda.

Also, at the event were the Ambassador of Nigeria to South Korea, HE Aliyu Magashi; NNPC Group Executive Director, Gas & Power, Mr. Mohammed Ahmed and Group Executive Director, Upstream, Mr. Adokiye Tombomieye, and other dignitaries.

In a related development, the GMD/CEO of NNPC Ltd, Malam Mele Kyari called on oil and gas companies operating in Nigeria to invest more in gas transportation in order to boost the nation’s gas exports to the global market.

Kyari made the call at an agreement signing ceremony between Hyundai Mipo Dockyard Company Limited, Temile Development Company, and NLNG Ship Management Limited (NSML) for the construction of a 23,000 M3 LPG/NH3/VCM Carrier and the supervision of the ship construction work on the sidelines of the 28th World Gas Conference 2022, in Daegu, South Korea.

He said it had become imperative for Nigeria to develop more channels for getting gas into the international gas market considering the pivotal role gas had assumed in the global march towards cleaner energy sources.

According to him, there is a need for Nigeria to take advantage of the global acceptance of gas as a transition fuel by massive investment in gas transport infrastructure.

“We expect to see more and more Nigerians coming forward to build a transportation medium for gas and other liquid that we handle,” Kyari stated.

He assured investors of NNPC’s support, saying: “We are here to support you, we are not in competition. We are here to make sure that you succeed so that our country will succeed and prosper into what we visualise and contribute globally to energy sales”.

Also speaking at the event, the Executive Secretary, Nigerian Content Development Monitoring Board, Mr. Simbi Wabote, commended the project partners for their various activities in Nigeria which he said were in alignment with NCDMB’s strategic objective of maximising the potential in the Midstream and Downstream Sectors of the Nigerian oil and gas industry to actualise the Decade of the Gas policy of the Federal Government.

“I am delighted that this project will bring invaluable local content opportunities in technology and innovation, human capital development as well as research and development,” he said.

The event was attended by the Chairman of the Board of Directors, NNPC Ltd., Mrs. Margery Chuba-Okadigbo, and representatives of Hyundai, NSML, and Temile Development Company.

Also in the week, Sonangol Group, the national oil company of Angola, Africa’s second-largest oil producer, expressed a desire to collaborate with NNPC Ltd. in the downstream sector reforms in Angola.

This was disclosed by a delegation from Sonangol on a benchmarking visit to the NNPC to understudy the company’s downstream operations and lay the foundation for new partnerships.

Speaking at a brief welcome ceremony held for the delegation at the NNPC Towers, Abuja, the head of the delegation and member of Sonangol’s Executive Committee in charge of Distributions, Ana Paula Marranjal Mesquita Do Carmo, said that the Delegates were in Nigeria to understudy NNPC’s downstream logistics and mechanisms of sales and distribution of petroleum products.

According to her, Angola was already transiting from a monopolistic market to a competitive market and Sonangol needed to learn from an established and functional system like NNPC.

Speaking earlier, the GMD/CEO of NNPC Ltd. who was represented by the Chief Financial Officer, Mr. Umar Ajiya, welcomed the guests as partners, adding that NNPC was committed to working with African companies to add value to their hydrocarbon value chain and create energy security for the continent.

He assured them that NNPC would share its experience with the group, stressing that the visit was timely as NNPC was currently transiting to a limited liability company with its business processes changing to become more commercially focused and efficient.

In a presentation to the delegation, the Group Executive Director, Downstream, who was represented by the Managing Director, PPMC, Mr. Isiyaku Abdullahi took them through the gamut of NNPC’s downstream operations with a special focus on NNPC Retail and its business model.

He assured them that NNPC was willing to answer all their questions and avail them of any information relating to downstream operations.

The Sonangol team was taken on a tour of a number of NNPC’s downstream facilities in Abuja, Lagos and Ogun State.

In another development, Federal Government called for synergy among stakeholders in the midstream and downstream sectors of the oil and gas industry.

The Minister of State Petroleum Resources, Chief Timipre Sylva, made the call at the opening ceremony of a two-day dialogue organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Lagos with the theme: “Maximising Potential in the Midstream and Downstream Oil and Gas sector – a Local Content Perspective”.

According to the Minister, one of the key objectives of the Ministry of Petroleum Resources under the Next Level Agenda of President Muhammadu Buhari’s administration is to increase the nation’s domestic refinery capacity.

Sylva noted that synergy in the Midstream and Downstream oil and gas sectors would further strengthen local content development and boost the country’s domestic refining capacity.

He noted that the government’s effort at boosting domestic refining capacity led to NCDMB’s partnership with local companies such as Waltersmith Refinery, Azikel Refinery, and Atlantic Refinery in furtherance of its role as a catalyst for capacity development in the Nigerian oil and gas industry and its linkage sectors.

Sylva said the dialogue “would serve as a platform to sensitize and enlighten stakeholders about the Board’s capacity-building intervention initiatives in support of Nigerian Content Development in the midstream and downstream sectors.”

Energy

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

Published

on

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

…’ Seplat Energy has an enormous chance to explore renewable energy solutions’

… Divestment opportunities abound for Seplat Energy, others

Olushola Okunlade Writes

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, as well as other energy producers in Africa, is projected to grow more given the rising demand for energy in Africa. Africa’s energy demand is also expected to see increased growth over the decade amidst current realities.

Global management consulting firm, McKinsey & Company disclosed this at the Seplat Industry Lecture and Dr. ABC Orjiako send forth event held in Lagos at the weekend.

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

“There will be rising demand for fossil fuels in Africa driven by industrialization and population growth. Energy demand growth will be led by Nigeria, and this will create tailwinds for energy suppliers like Seplat Energy,” Oliver Onyekweli, Associate Partner and Co-Lead of West Africa Oil and Gas Practice, McKinsey & Company, said whilst making a presentation on the theme of the Lecture dubbed “The Future of African Oil & Gas: Positioning for the Energy Transition”.

“Africa’s growing energy demand also creates opportunities for Seplat to explore renewable energy solutions (e.g. solar, blue hydrogen),” he added.

Decarbonizing production and cost leadership, McKinsey explained, will be key going forward as capital providers continue to reduce exposure to oil and gas, with customers preferencing lower carbon shipments. Decarbonization of assets to the greatest possible extent, it added, will be needed to maintain “license to operate” and maintain access to capital at attractive rates. “As global oil demand peaks, maintaining cost leadership ($/bbl) will be increasingly vital.”

Indigenous producers will define the future of African oil and gas, as IOCs will continue to face pressure to reduce carbon-intensive operations and lower the cost of production, according to McKinsey, which also maintained that divestment is likely to continue.

“Companies like Seplat Energy are well-positioned to pick up producing assets going forward, provided they can maintain operational excellence. Ensuring continued access to talent will be key,” it added.

Growing Energy Demand Presents Huge Business Opportunities For Seplat, Others – McKinsey & Company

McKinsey further explained that “African energy infrastructure is a compelling opportunity. As the energy transition accelerates, gas will become more prominent as a “transition fuel”, especially in Nigeria. Significant domestic gas demand is a positive tailwind for Seplat Energy’s ANOH project and gas’ cleaner carbon profile (relative to diesel) should make gas projects easier to finance (can be paired with LPG). Investing in gas export infrastructure (e.g. FLNG) could create an opportunity to access high-value international spot market.”

Dr. ABC Orjiako, the Pioneer and immediate past Chairman of Seplat Energy, lauded all the company’s stakeholders for the huge successes recorded so far in the company since its inception, saying they were products of hard work, sleepless nights, and resilience.

Commending all stakeholders of Seplat Energy for the great achievements recorded so far, the Chairman, Seplat Energy, Mr. Basil Omiyi, said the year 2022 marks a major turning point for Seplat Energy as Dr. Orjiako retires from the Board after leading the Company to achieve monumental milestones over the last 13 years, including 9 years as a listed entity.

Notable amongst the achievements he listed were, the IPO vision, the listing, production growth, reserve addition, corporate governance, landmark acquisitions, funding strategy, and setting the stage for corporate transformation, amongst others.

In his remarks, the CEO of Seplat Energy, Mr. Roger Brown, said  Dr. Orjiako drove Seplat Energy’s long-term imperative with regards to global transition away from fossil fuels towards cleaner and renewable energies, advocating a Just Transition, which is to be conducted at an appropriate pace.

That, according to Brown, was why, the Board under Dr. Orjiako decided to re-brand the Company as Seplat Energy, which is a signal of “our intent and how we see our future”.

Continue Reading

Energy

Global Energy Crisis Shows Urgency Of Accelerating Investment In Cheaper And cleaner Energy In Africa

Published

on

Global Energy Crisis Shows Urgency Of Accelerating Investment In Cheaper And cleaner energy in Africa

Olushola Okunlade Writes

Today’s crippling spikes in energy prices underscore the urgency and the benefits for African countries of accelerating the scale-up of cheaper and cleaner sources of energy, the IEA says in a new special report released last week.

Russia’s invasion of Ukraine has sent food, energy, and other commodity prices soaring, increasing the strains on African economies already hard hit by the Covid-19 pandemic. The overlapping crises are affecting many parts of Africa’s energy systems, including reversing positive trends in improving access to modern energy, with 25 million more people in Africa living without electricity today compared with before the pandemic, according to the Africa Energy Outlook 2022.

At the same time, Africa is also already facing more severe effects from climate change than most other parts of the world – including massive droughts – despite bearing the least responsibility for the problem. Africa accounts for less than 3% of the world’s energy-related CO2 emissions to date and has the lowest emissions per capita of any region.

Despite these challenges, the report finds that the global clean energy transition holds new promise for Africa’s economic and social development, with solar, other renewables, and emerging areas such as critical minerals and green hydrogen offering strong growth potential if managed well. Increased international ambitions for cutting emissions are helping set a new course for the global energy sector amid declining clean technology costs and shifting global investment patterns. African countries are poised to benefit from these trends and attract increasing flows of climate finance.

“Africa has had the raw end of the deal from the fossil fuel-based economy, receiving the smallest benefits and the biggest drawbacks, as underlined by the current energy crisis,” said Fatih Birol, the IEA Executive Director. “The new global energy economy that is emerging offers a more hopeful future for Africa, with huge potential for solar and other renewables to power its development – and new industrial opportunities in critical minerals and green hydrogen.”

“The immediate and absolute priority for Africa and the international community is to bring modern and affordable energy to all Africans – and our new report shows this can be achieved by the end of this decade through the annual investment of $25 billion, the same amount needed to build just one new LNG terminal a year,” Dr. Birol added. “It is morally unacceptable that the ongoing injustice of energy poverty in Africa isn’t being resolved when it is so clearly well within our means to do so.”

The Africa Energy Outlook 2022 explores a Sustainable Africa Scenario in which all African energy-related development goals are achieved on time and in full. This includes universal access to modern energy services by 2030 and the full implementation of all African climate pledges.

With demand for energy services in Africa set to grow rapidly, ensuring affordability is an urgent priority. Increased energy efficiency is essential for this, since it reduces fuel imports, eases strains on existing infrastructure, and keeps consumer bills affordable.

Expanded and improved electricity grids provide the backbone of Africa’s new energy systems in this scenario, and are powered increasingly by renewables. Africa is home to 60% of the best solar resources worldwide, but it currently holds only 1% of solar PV capacity. Already the cheapest source of power in many parts of Africa, solar is set to outcompete all other sources continent-wide by 2030. Renewables – including solar, wind, hydropower, and geothermal – account for over 80% of new power generation capacity added by 2030 in the Sustainable Africa Scenario.

While renewables are the driving force for Africa’s electricity sector this decade, the continent’s industrialisation relies in part on expanding natural gas use. More than 5 000 billion cubic metres (bcm) of natural gas resources have been discovered to date in Africa that has not yet been approved for development. These resources could provide an additional 90 bcm of gas a year by 2030, which may well be vital for Africa’s domestic fertilizer, steel, cement, and water desalination industries. Cumulative CO2 emissions from the use of these gas resources over the next 30 years would be around 10 billion tonnes. If these emissions were added to Africa’s cumulative total today, they would bring its share of global emissions to a mere 3.5%.

Africa’s vast resources of minerals that are critical for multiple clean energy technologies are set to create new export markets but need to be managed well, with Africa’s revenues from critical mineral exports set to more than double by 2030.

A number of low-carbon hydrogen projects are underway, focused primarily on producing ammonia for fertilizers, which would strengthen Africa’s food security. Africa has huge potential to produce hydrogen using its rich renewable resources. As much as today’s energy demand could be produced at internationally competitive price points by 2030.

Achieving Africa’s energy and climate goals means more than doubling energy investment this decade. This would take it over USD 190 billion each year from 2026 to 2030, with two-thirds going to clean energy.

“Multilateral development banks must take urgent action to increase financial flows to Africa for both developing its energy sector and adapting to climate change,” said Dr. Birol. “The continent’s energy future requires stronger efforts on the ground that are backed by global support. The COP27 Climate Change Conference in Egypt in late 2022 provides a crucial platform for African leaders to set the agenda for the coming years. This decade is critical not only for global climate action but also for the foundational investments that will allow Africa – home to the world’s youngest population – to flourish in the decades to come.”

Continue Reading

Energy

2022 Energy Technology RD&D Budgets Data

Published

on

The IEA is delighted to inform all data users of the first release of the 2022 Energy Technology RD&D Budgets data.Energy Technology RD&D Budgets databaseThe Energy Technology RD&D Budgets free database, with data on public budgets up to 2022, is a unique data collection obtained from national administrations.In 2021, the estimated total public energy research, development and demonstration (RD&D) budget for IEA member countries increased by 2% reaching USD 23 billion. This was the fourth consecutive year of increase after five years of decrease although at a slower rate than previous years.In the past 5 years the increase in public RD&D budgets among IEA countries has mainly been driven by energy efficiency but the most rapid increase has been for hydrogen and fuel cells technologies.
The IEA is delighted to inform all data users of the first release of the 2022 Energy Technology RD&D Budgets data. Energy Technology RD&D Budgets database.

The Energy Technology RD&D Budgets free database, with data on public budgets up to 2022, is a unique data collection obtained from national administrations.

In 2021, the estimated total public energy research, development, and demonstration (RD&D) budget for IEA member countries increased by 2% reaching USD 23 billion. This was the fourth consecutive year of increase after five years of decrease although at a slower rate than previous years.

In the past 5 years, the increase in public RD&D budgets among IEA countries has mainly been driven by energy efficiency but the most rapid increase has been for hydrogen and fuel cell technologies.
IEA public RD&D budgets increase in the 2016-2021 period to technology
The database is now accompanied by a Data explorer, an interactive tool that gives the opportunity to dive into the full database.
Discover the free database and analysis at Overview – Energy Technology RD&D Budgets: Overview – Analysis – IEA.

Continue Reading

Trending