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NNPC to partner Chevron in building a Condensate Refinery in Nigeria

The Nigeria National Petroleum Corporation (@NNPCgroup) is set to collaborate with  International oil company, Chevron Nigeria Limited to establish a condensate splinter refinery.

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NNPC to partner Chevron

The Nigeria National Petroleum Corporation (NNPC) is set to collaborate with the international oil company, Chevron Nigeria Limited to establish a condensate splinter refinery.

The NNPC Group Managing Director, Mallam Mele Kyari, disclosed this when the Management of Chevron Nigeria Limited (CNL) led by its Managing Director, Jeff Ewing, paid a business visit to the NNPC Towers, Abuja.

Further Details: While speaking, the NNPC boss noted that it’s very important to set up such a refinery in order to put an end to the shameful act of fuel importation, which the NNPC cannot solely take responsibility for. Kyari also noted that proferring a solution to the problem requires a Joint Venture partnership.

[READ MORE: Nigeria spent N206.6 billion on fuel subsidy in two months – NNPC]

The NNPC GMD further urged Chevron to work closely with the Corporation to evolve modalities for a downward review of the cost structure of crude oil production in Nigeria in order to boost profit and revenue for the country.

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“We hold Chevron Nigeria Limited (CNL) in very high esteem for her efficiency and cost optimisation. We look more up to the company to increase production and reserve, reduce cost and increase local refining capacity.”

[READ ALSO: Fuel subsidy gulps N771 bIllion in NNPC’s spending over 13 months]

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Earlier Development: Earlier in May, the NNPC revealed it was planning to build a condensate refinery that is specifically for Premium Motor Spirit, also known as petrol.

  • The former NNPC’s Group Managing Director, Maikanti Baru, had hinted in January this year, that the Corporation was working towards establishing some Greenfield refineries, including a condensate refinery.
  • Meanwhile, the Corporation had reportedly completed the feasibility studies on the refinery and the facility would utilise the huge amount of condensate in Nigeria for the production of petrol.

Following this, in a report put together by NNPC, the Corporation’s Group General Manager, Greenfield Refineries Department, Sanusi Usman disclosed,

“Conventional refineries are set up to process crude oil into multiple products, such as PMS (petrol), HHK (kerosene), AGO (diesel), fuel oil and others. Because you are dealing with high volumes here, you need to build different units to process and upgrade the quality of the various products.

“But in the case of a condensate refinery, the feedstock is condensate, not crude oil. And it is just one product you will get from it, which is PMS. This means that it does not need to have many units like a conventional refinery. If it is not very large, you can have the units in modular forms.”

Collaboration with Chevron: In the meantime, Kyari noted that NNPC had done quite well in meeting its financial obligations to Chevron in the last three years, stressing that this was expected to boost the confidence of JV partners to commit to further investment in the upstream sector.

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The NNPC boss urged Chevron to collaborate with NNPC to increase crude oil production and grow reserves in the country, stressing that NNPC was ready to work with Chevron to ensure that the Final Investment Decision (FID) on NLNG Train 7 was taken soonest for the benefits of all the investors.

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The bottom line: An earlier report by Nairametrics shows Nigeria spent N206.59 billion in just two months. Hence, the proposed collaboration, which is an attempt to increase the production of crude oil and gas, and may completely put a halt to petrol importation and subsidy payment which gulps billions from Nigeria.

[READ FURTHER: Nigeria spent N206.6 billion on fuel subsidy in two months – NNPC]

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

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Coronavirus

#EndSARS: FG expects increase in Covid-19 cases in the next 2 weeks

FG has warned that the ongoing #EndSARS protest may spark up a second wave of coronavirus.

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FG approves reopening of NYSC camps, extends tenure of PTF on COVID-19, FG commences process of resumption of international flight operations in weeks, COVID-19: Reactions trail FG travel ban on 13 countries

The Federal Government has warned that Nigerians should expect an increase in the number of coronavirus cases across the country in the next 2 weeks.

This is due to the total disregard of the preventive measures against the virus during the ongoing nationwide #EndSARS protest which has been witnessing huge gatherings.

This disclosure was made by the Chairman of the Presidential Task Force (PTF) on Covid-19, who is also the Secretary to the Government of the Federation (SGF), Boss Mustapha, at the national briefing of the task force in Abuja on Monday, October 20, 2020.

He said despite the appreciable success recorded so far in the fight against COVID-19, the ongoing protest may spark up a second wave of the virus.

Mustapha said, “I can say it authoritatively that with the ongoing protest across the country, in the next two weeks the cases of COVID-19 would have increased. Each and everyone that attended the protest and did not put up any form of protection is likely going to spread the virus. When people contract the virus during the protest gathering, they will go back home and spread it.

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“This is one of the reasons why we must be extremely careful when we congregate because when you gather together in such an atmosphere where people don’t wear face masks or maintain the social distance you are creating a potential opportunity for carriers to spread the virus.

“So far we have done pretty well as a country but this protest is like a setback and we must avoid a situation where we will have a resurgence. Countries that thought they have overcome are dealing with the second wave. We are extremely lucky as a nation and we should be careful of any situation that can warrant the second wave.”

He said any mass gathering that does not adhere to the non-pharmaceutical interventions that have been put in place, like wearing of face masks, social distancing, and keeping personal hygiene, becomes a super spreader event.

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What it means: With the expected spike in the number of Covid-19 cases due to these protests across the country, Nigeria runs the risk of having a second wave of the coronavirus outbreak which had before now been on a decline. This could lead to the resumption of lockdown measures by the government, in order to contain the spread of the pandemic.

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Coronavirus

COVID-19 Update in Nigeria

On the 19th of October 2020, 118 new confirmed cases were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 61,558 confirmed cases.

On the 19th of October 2020, 118 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 11,794 samples across the country.

To date, 61,558 cases have been confirmed, 56,697 cases have been discharged and 1125 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 590,635 tests have been carried out as of October 19th, 2020 compared to 578,841 tests a day earlier.

COVID-19 Case Updates- 19th October 2020,

  • Total Number of Cases – 61,558
  • Total Number Discharged – 56,697
  • Total Deaths – 1,1125
  • Total Tests Carried out – 590,635

According to the NCDC, The 118 new cases are reported from 10 states – Lagos (51), Rivers (26), Imo (12), Osun (8), Plateau (6), FCT (5), Kaduna (4), Ogun (3), Edo (2), Niger (1)

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 20,696, followed by Abuja (5,923), Plateau (3,587), Oyo (3,415), Rivers (2,735), Edo (2,645), Kaduna (2,532), Ogun (1,983), Delta (1,812), Kano (1,741), Ondo (1,657), Enugu (1,313),  Kwara (1,050), Ebonyi (1,049), Osun (916), Katsina (904), Abia (898), Gombe (883).  Borno (745), and Bauchi (710).

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Imo State has recorded 610 cases, Benue (484), Nasarawa (478), Bayelsa (403),  Ekiti (329), Jigawa (325), Akwa Ibom (295), Anambra (275), Niger (274), Adamawa (248), Sokoto (162), Taraba (117), Kebbi (93), Cross River (87), Zamfara and Yobe (79), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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Energy

Nigerian firm set to raise $1.2 billion to purchase electricity meters

MAPCo plans to raise N480 billion to purchase electricity meters and to help the DISCOs plug revenue gaps in their operations.

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The Nigerian Electricity Regulatory Commission (NERC), National electricity grid collapses again, as NUEE suspends strike action , FG to increase electricity tariffs in order to improve power supply, Power: Liquidity crisis-same old story in 2020?, GenCos urges NBET to pay up N1 trillion debt, Electricity Tariff: FG, electricity stakeholders to work on equitable rate , Power: NERC applies "brakes" on hike in tariffs, NERC to sanction 7 DisCos over uncapped estimated billing

A Nigerian firm, Meter Assets Finance and Management Company (MAPCo), has concluded plans to raise N480 billion ($1.2 billion) over the next 3 years, to purchase electricity meters and help the electricity distribution companies (DISCOs) plug revenue gaps in their operations.

This is also in line with the Federal Government’s initiative to ensure that all electricity consumers are metered, which will put an end to estimated billing by the DISCOs.

According to a report from PricewaterhouseCoopers, less than one-tenth of Nigeria’s 41 million households have their electricity consumption metered, and half of those are faulty. As a result, distribution companies have to estimate bills, resulting in constant conflict with the consumers that delay payments.

The Chief Executive Officer of New Hampshire Capital, Onion Omonforma, said the Meter Assets Finance and Management Co. hopes to end the practice of estimated billings by raising funds to purchase and supply meters to consumers.

New Hampshire Capital, FBNQuest and Kairos Investments Africa are helping to package and structure the venture, known as MAPCo, for investors to either buy equity or inject debt into the company.

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What they are saying

Omonformaa said, “The electricity distribution firms will then have the money to go back and buy more meters and the cycle continues, paving the way to close the metering gap. MAPCo will collect the cost of the meters from consumers at a premium over the next 10 years. The meters will be handed over to the power-distribution companies once paid off.’’

While disclosing that MAPCo plans to issue a N100 billion bond in the next year, Omonforma also pointed out that roadshows have been planned for the U.S. and Europe, and will include local institutional investors.

He said, “We envisage that a lot of people who are looking for a long-term instrument will key into it,”

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It can be recalled that apart from repealing the estimated billing methodology in determining tariffs for electricity consumers; the Federal Government had insisted that all consumers must be metered, as part of the condition for a tariff increase.

Also, as part of the agreement reached with the organized labor in respect of the tariff increase; the Federal Government disclosed that the National Mass Metering Programme will be accelerated, with the distribution of 6 million meters to Nigerians for free.

What this means

A huge number of electricity consumers across the 36 states and the FCT are still unmetered by their respective DISCOs. This initiative by MAPCo will help bridge the existing gap, with more electricity consumers acquiring a prepaid meter and doing away with the controversial estimated billing.

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