Business News
FG projects $2 billion annual revenue from Escravos Gas project
The Nigerian government has been projected to earn $2 billion annually from the EGTL project, the NNPC disclosed.
The Nigerian government has been projected to earn $2 billion annually from the Escravos Gas to Liquid (EGTL) project, the Nigerian National Petroleum Corporation (NNPC) disclosed.
According to Mele Kyari, the Group Managing Director, NNPC at the sign-off meeting of the EGTL project, which is in partnership with Chevron Nigeria Limited (CNL), Chevron Nigeria would be able to increase gas supply with 400 million standard cubic feet per day (MMScfp/d), projected to be 26% of Nigeria’s domestic gas supply.
The NNPC boss disclosed that the multi-billion dollar EGTL plant would be a cornerstone of the energy ecosystem of Nigeria, with the potential to yield $2 billion yearly into the coffers of the Federal Government. He appreciated the role of the presidency and Sen. Bassey Akpan Chairman, Senate Committee on Gas, which assisted in the execution of the agreements in relation to the project.
Meanwhile, the Chief Executive Officer of Chevron Nigeria Limited, who was represented by the Director, NNPC/Chevron Nigeria Limited Joint Venture (JV), Mr Monday Ovuede, in his address stated that the project would bring about opportunities for commercialisation and monetization of gas in the oil and gas industry, The Nation reported.
Ovuede emphasized that one of the values the EGTL project would bring includes the provision of clean and environmentally friendly energy while assuring of his organisation’s commitment to foster mutually beneficial relationship with the Nigerian National Petroleum Corporation in the energy sector.
[READ MORE: FG’s monthly revenue drops by N387.15 billion)
The event witnessed the signing of five important sets of agreements which include the Settlement Agreement; Amendment to the Venture Agreement; Sales and Purchase Agreement; Depository Agreement for Special Purpose Vehicle; and Agreement for Power of Attorney to be given to Chevron Nigeria Limited as the representative of the sellers.
What you need to know about GTL: Gas-to-liquids (GTL) is a technology that enables the production of clean-burning diesel fuel, liquid petroleum gas and naphtha from natural gas. The GTL process enables us to transform natural gas into super clean diesel fuel.
Energy
Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply
Nigerian Electricity Regulatory Commission says international electricity customers remitted the sum of N2.04billion to Nigeria in three months.
Nigeria’s international electricity customers – Togo, Niger, and Benin, remitted the sum of N2.04billion in the first quarter of 2020, as their outstanding electricity bill to the Market Operator (MO) of the sector in Nigeria.
This was found in the Nigerian Electricity Regulatory Commission 2020 first quarter report, which was released recently.
According to the report, a total of N4.05billion ($13.22million) invoices were issued by the MO to international customers including Societe Nigerienne d’electricite or NIGELEC; Societe Beninoise d’Energie Electrique (SBEE); and Compagnie Energie Electrique du Togo (CEET).
The commission stated that during the quarter, NIGELEC made a payment of ₦1.61billion ($5.27million) as part of its outstanding bills for the energy received from NBET and services rendered by the MO.
It stated, “Similarly, SBEE paid ₦0.43billion ($1.39million) in respect of services received from MO.
“It was noteworthy that tariff shortfall (represented by the difference between actual end-user tariffs payable by consumers and the cost-reflective rates approved by NERC) had partly contributed to liquidity challenges being experienced in the industry.
“The settlement ratio to the expected Minimum Remittance Thresholds, having adjusted for tariff shortfall, indicated that power distribution companies needed to improve on their performance.”
But …
Special customers like Ajaokuta Steel Co. Ltd and others in its environs did not make any payment in respect of the N0.27billion and N0.05billion invoices issued to them by the Nigerian Bulk Electricity Trading Plc and the MO respectively, during the period under view.
Meanwhile, the power distributors failed to remit N119.88billion to the sector within the same period.
“Whereas Discos were expected to make a market remittance of 46.09% during 2020/Q1, only 32.53% settlement rate was achieved within the timeframe provided for market settlement in the Market Rules,” it added.
What it means: The Discos’ remittance level, regardless of the prevailing tariff shortfall, was still below the expected MRT and they are expected to improve on their performances.
ENDSARS
#EndSARS: Protests may return if panels do not address all issues in 2 weeks – Former Nigerian Minister
Akinyemi says the #EndSARS protesters would return to the streets if their demands are not addressed in two weeks.
Coronavirus
COVID-19: Jason Njoku and wife test positive
iROKOtv CEO and wife have contracted the novel coronavirus.
Nigerian stocks on steroids, investors on hat trick
Togo, Niger, Benin remit N2.04 billion to Nigeria for power supply
BREAKING: Currency traders seek refuge in U.S dollar, up 0.5%
#EndSARS: Protests may return if panels do not address all issues in 2 weeks – Former Nigerian Minister
Total Nigeria Plc records 344% rise in PAT for Q3 2020
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦460/$1
Buhari approves free business name registration for 250,000 SMEs
Federal Government declares Thursday October 29 public holiday, to mark Eidl-Mawlid
FG disburses MSMEs Survival Fund in Lagos, Kano, FCT and 9 other states
