... Minister lists achievements in 2012

THE Turn Around Maintenance (TAM) of the nation’s three refineries in Warri, Port Harcourt and Kaduna; completion of the country’s fertilier and chemicals plant are some of the projects, which the Federal Government has outlined to  execute in 2013.

In a document made available to The Guardian by the Ministry of Petroleum Resources, the Port Harcourt refinery is expected to come on stream in the first quarter of the year, followed by Kaduna and Warri refineries respectively.

According to the government, the fertiliser and chemical plant, which is also slated to be built in this year would help the country reduce gas flaring and provide jobs of over 500,000 jobs.

Dwelling on the achievements of the government in 2012, it stated that the year began on a stormy note with protests over the withdrawal of fuel subsidy by the Federal Government and resultant increase in fuel price.

It added that in its attempt to respond to protest on the subsidy removal, the government established task forces to cater to different areas all geared towards promoting efficiency and transparency in the petroleum industry as well as among all parastatals under the ministry.

It noted that the task force on Petroleum Industry Bill (PIB) submitted its report after the Olorunsola led technical sub-committee completed work after weeks of painstaking sessions.

It explained,  “the ministry eventually received the draft bill and after extensive deliberations submitted same to the Federal Executive Council after consideration before subsequent passage to the National Assembly for legislative action.

Commenting on the provisions of the PIB, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke said the new PIB was drafted with equity in mind and that the concerns of the international oil companies were taken into consideration so as to engender a win-win situation for Nigeria, as well as, stakeholders in the oil and gas industry.

She listed some of the new provisions in the Bill to include those creating the Asset Management Company, which will take over the management of the Joint Ventures from the Nigeria National Petroleum Corporation (NNPC), which will be unbundled to make way for the establishment of a new company, the National Oil Company, which will be competitive and profit-driven.

The statement noted that in line with the Federal Government’s desire of ensuring adequate gas to power station the ministry of petroleum took extra-ordinary measures to achieve sufficiency in gas supply to power stations with a 12-month Gas Supply Emergency plan designed to correct the misalignment cum challenges in the nation’s gas to power aspirations.

Alison-Madueke stated that, “delivery of gas to ensure sufficient, uninterrupted supply to existing, as well as new thermal generating plants, has been a special focus area of mine and the Ministry of Petroleum Resources. Up to recent times, gas supply to power plants outstripped demand to the extent that significant volumes of available gas remained unutilised on a daily basis. However a close analysis of the supply chain has revealed that over the last 10 years or so, there has been significant misalignment between power projects and gas supply sources.”

To quickly and holistically address the misalignment, she stated, “I am immediately deploying a 12-month “Domestic Gas Supply Emergency Plan.”

During this period, the Ministry of Petroleum Resources, together with the NNPC and the gas producing companies will deploy extraordinary measures to accelerate opportunities for quick wins in order to ameliorate the potential gap between gas demand and supply,’’ Alison-Madueke declared.

Addressing journalists in Abuja last year, Alison-Madueke noted that the underpinning improvement in gas supply which precipitated the noticeable increase in volume of power generations were as a result of  aggressive infrastructure expansion and gas supply development initiatives.

“Since the roll out of the plan, we have achieved major milestones in the expansion of the Escravos-Pipeline System – the major gas supply artery to the power plants. This is part of the most extensive expansion ever undertaken on this pipeline network since it was built 30 years ago.

She listed the items completed in the critical pipeline segments to include the 27kmX24inch permanent gas supply pipeline from Itoki to Olorunshogo via Ewekoro all in Ogun State, the 56kmX24inch Escravos-Warri gas pipeline – doubling the pipeline capacity and enhancing gas evacuation from Escravos, as well as, the 130kmX36inch Oben to Geregu pipeline.

“The net impact of all these is the addition of 120million cubic feet of gas per day (mmcf/d) to the grid and the permanent elimination of the challenges of low gas pressure that has plagued the Olorunshogo Power Holding Company of Nigeria (PHCN) and NIPP power plants. We are also now well positioned to supply gas to the existing Geregu Power plant and all anticipated future expansions in that axis,’’ Alison-Madueke disclosed·

The minister explained that in addition to the pipeline projects, major works on the Utorogu and Ughelli gas plants have reached completion.

“Specifically, with these interventions, we are now able to supply gas to the full requirements of Egbin, Sapele PHCN, Delta IV, Olorunshogo both PHCN and NIPP plants and Omotosho PHCN power plants.

“In addition, we are able to meet the requirements of two out of three turbines in Geregu and one out of two turbines in Sapele NIPP,’’ she said.

Alison-Madueke stated that despite the obvious marked improvement in power generation as a result of the Gas Supply Emergency plan, work continues on the implementation of the plan with further targeted additions.

“Some of the projected additions include: a further 65mmcf/d within the next 3 to 4 weeks to come from ongoing work at Oredo field which will effectively bridge outstanding gap in supply – enabling supply to all power plants on the Western axis. It was also projected that the gross short-term additions by year-end 2012 will be 245mmcf/d as opposed to the promised 180mmcf/d in the short term.

“In essence, Nigerians can expect continued growth over the current all-time peak recorded by the Power Ministry. Going forward this trend will continue as we finally address the underpinning challenges of the supply system. I am convinced that we have effectively come out of the deep with the Nigerian power situation and would expect a steady upward climb from here,’’ Alison-Madueke affirmed.

The statement added that the year 2012 also witness Carbon Pollution Restoration Project, (HYPREP), in clear furtherance of the Federal Government’s commitment to implement the United Nations Environment Programme (UNEP) Assessment Report on Ogoniland.

At the inauguration the Alison-Madueke stated that the setting up of HYPREP by the government was in keeping with the Federal Government’s determination to protect the environmental human rights of the people.

She disclosed that the project shall implement the recommendations of the UNEP report on Ogoniland as well as investigate, evaluate and establish other hydrocarbon impacted sites and make appropriate recommendations.

It noted that the government also recorded strides by constant maintenance of the national consumption supplies through the utilisation of coastal vessels.

It said that the country continues to enjoy stability in products supply despite the challenges of willful damage of petroleum products pipelines, draft limitations at jetties, frequent rejection of daughter vessels by vessels, insufficient manpower in the cargo unit, disruption of pumping activities due to pipelines vandalism, loss of lives among others.

“A major milestone was the re-commissioning of Aba depot which had been moribund for over seven  years due to constant vandalism on the 54km pipeline from Port-Harcourt to Aba.

“An aggressive approach to the restoration of some inactive pipelines was adopted during the period like the pipelines to Gusau, Kano, Suleja & Minna were restored, wet with products and fully operational

“To keep abreast with the modern trend in operation, especially in Aba depot, six analogue mechanical loading meters were upgraded to the latest load digit metering system. A brand new 500KVA power generating set was also installed. Also a turbo-generator 111A and C that supplies power to Escravos were rehabilitated and commissioned as well as the procurement and installation of three 3.3KVA X 1250KVA diesel generators at Ibadan depot.

“Grew LPG sales and achieved a 100 per cent occupation in Lagos Jetties with no record of idle days.

“Recorded drastic reduction of demurrage through effective and efficient utilisation of coastal vessels with a huge recovery and rehabilitation of the NNPC fenders and positioning of same in Apapa with the attendant cost savings to NNPC,” it disclosed.

It noted that the country was also able to record a major milestone in the country’s production and exploration targets, as well as, the Local Content Development policy of the Federal Government.