The Nigerian Content Development and Monitoring Board (NCDMB) has unveiled its gas hub in the Polaku community of Bayelsa State, with the launch of Rungas LPG Composite Cylinder Manufacturing plant.
The project was launched by the Minister of State for Petroleum Resources, Chief Timipre Sylva last week, according to a press statement issued by the NCDMB on Monday.
The NCDMB built the gas hub on a 10.6 hectare of land which was purchased in 2013 for the establishment of a pipe mill. The NCDMB said discussions to launch the pipe mill were not successful, leading the agency to utilize it for a different purpose.
The Minister said the launch of the gas hub would help Nigeria diversify its economic productivity and develop the country’s gas infrastructure value chain through the Federal Government’s declaration of 2020 as a year of gas.
“The location of this land is close to the Gbarain Gas Plant that produces more than one billion standard cubic feet per day of gas; that provides opportunities to leverage on the proximity to activate value-adding initiatives and lead to industrialization and multiple economic activities,” Mr Sylva said.
He added that LPG penetration nationwide would help the country reach its supply for the LPG value chain.
The plant would have a production capacity of 400,000 to 1 million LPG composite cylinders per annum and in turn, make composite LPG cylinders accessible and affordable to Nigerians as well as create employment opportunities.
The NCDMB announced that it developed a 10-year Strategic roadmap in 2017, and began implementation in 2018 with the aim of reaching 70% Nigerian Content level by the year 2027.
The Executive Secretary, NCDMB, Engr. Simbi Kesiye said, “Technical Capability Development is one of the pillars of our Strategic Roadmap meant to facilitate the building of manufacturing facilities and capabilities to support in-country manufacturing and assembly of equipment and input materials required for exploration and production activities.’’
Wabote further explained that the strategic roadmap provided the leverage to use the Polaku land for gas related activities and partnership with Rungas Limited to setup LPG Cylinder Manufacturing plant. Shell Nigeria set up the Pressure Reduction and Metering Station and Total Support Energy Limited provided the CNG and LNG mother-stations.
He added that with the new direction on gas, the NCDMB negotiated partnerships with three investors and 5 hectares of land have already been procured for further development.
DPR approves new Liquefied Petroleum Gas guidelines for investors, operators
DPR has announced the introduction of new guidelines to accommodate more LPG investors and operators across the country.
The Department of Petroleum Resources (DPR) has announced the introduction of new guidelines to accommodate more Liquefied Petroleum Gas (LPG) investors and operators across the country as part of its policy on gas.
This initiative by the oil and gas regulator is part of the measures aimed at enhancing the availability of LPG, also known as cooking gas in Nigeria, in addition to meeting the current administration’s target of 5 million metric tonnes of domestic, commercial and industrial LPG utilization in the next 10 years.
According to a report by ThisDay, the disclosure was made by the Zonal Operations Controller of DPR, Ayorinde Cardoso, while speaking with journalists during a public sensitization exercise on safe usage of LPG.
Cardoso stated that the federal government through the National Gas Expansion Programme was committed to making gas accessible and affordable for Nigerians.
He said, “We have a lot of people coming into the sector to invest and DPR is on ground to ensure that they follow the regulatory requirements. We have brought out new guidelines to encourage investors and anybody that wants to operate in the sector to follow the guidelines.
“DPR is also collaborating with the Lagos state government and other stakeholders to improve safety in gas storage, sales and distribution.”
What you should know
Nairametrics had earlier reported that as part of its new policy on gas, DPR had moved against illegal operators of gas facilities with the shutdown of 85 LPG plants in Lagos in the last 10 months. It stated that the plants were shut down for not complying with international safety standards and operating without approval or license from the DPR.
The Federal Government had encouraged stakeholders and investors to invest in the LPG sector to accelerate the development of the domestic gas market.
It can be recalled that the FG through the Central Bank of Nigeria had set up a N250 billion intervention facility for the national gas expansion programme, with the specific target at making Compressed Natural Gas (CNG) the fuel of choice for transportation as against petrol and LPG for domestic cooking, captive power, and small industrial complexes.
Nigeria’s 5,000 BPD refinery will produce 271 million liters of petrol every year
The operator of the newly commissioned refinery has disclosed that the facility will produce 271 million liters of petroleum products annually.
Mr. Chikezie Nwosu, Chief Executive Officer of WalterSmith Petroman Oil Limited, the operator of the new refinery, has disclosed that the newly commissioned 5,000 BPD Refinery will produce 271 million liters of petroleum product annually.
This information was disclosed by Nwosu in his address during the commissioning ceremony of the 5,000 BPD Modular Refinery, in the Ibigwe Field, Imo State.
Mr. Nwosu disclosed that the refinery will refine 5,000 barrels per day of crude oil, and produce 271 million liters of petroleum product annually.
He added that since it commenced the evacuation of products in November 2020, it has already delivered 5 million liters of product into the Nigerian market.
While speaking at the ceremony, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote explained that the next phase of the project will be a 45,000 BPD Refinery, with a completion timeline of 24-30months. When completed, the Refinery will utilize 16 million barrels of crude oil annually.
He stressed that this is an impressive and avid step towards the board’s mandates of developing in-country capacities/capabilities to add value to Nigeria’s hydrocarbon resources.
The ES of NCDMB disclosed that the Federal Government’s target is that at least 10% of Nigeria’s crude and condensate production should be refined through modular refineries.
What you should know
The refinery is one of the government’s investments in the oil industry, as FG’s investments in ongoing modular refinery projects so far amount to 80,000 BPD of combined modular refining capacity.
WalterSmith Petroman Oil Limited owns 70% of the Refinery being commissioned today, while the Nigerian Content Development and Monitoring Board on behalf of the Federal Government of Nigeria hold 30% equity of the refinery.
However, it is important to note that the Federal Government of Nigeria signed a Memorandum of Understanding (MoU) with the Niger Republic on the transportation and storage of petroleum products.
Why this matters
The refinery is a giant step towards the development of capacities and capabilities in the oil industry, especially in terms of local production of refined petroleum products.
The Refinery will strengthen local and indigenous investment in the oil industry and boost the production capacity of refined crude products in the country.
According to OPEC, Nigeria’s petroleum products import of $58.75 billion, outstrips the country’s crude oil export of $45.12 billion, at the end of 2019. This development is expected to reduce the importation of petroleum products in Nigeria.
Port Harcourt Refinery to get a facelift in Q1 2021 – NNPC
NNPC is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
The Nigerian National Petroleum Corporation (NNPC) is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
According to the African Business Intelligence Report, NNPC is working hard and round the clock towards ensuring that four refineries are up and running by 2023.
The Group MD of NNPC, Mallam Mele Kyari made this disclosure and said, “The vision of revamping the pipelines is in tandem with the Refineries Rehabilitation Project, which we have promised to deliver by 2023. I am happy to announce that the funding challenge which had stalled the second phase of the rehabilitation of the Port Harcourt Refinery has been resolved. The contract for the second phase will soon be awarded and work will commence in Q1 of 2021.”
According to Mallam Kyari, a lot has been put in place to boost exploration and production with a view of achieving 3m barrels per day production target.
What you should know
Nairametrics had reported that the first phase rehabilitation was to take place 2 years ago and to be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.
It was expected that after the phase-1 of rehabilitation, the Refinery complex should be able to reach its 60% capacity utilization.
Further rehabilitation of the PHC refinery is expected to enhance its production capacity to meet its production targets
Putting the refineries in good shape to produce optimally would stem down the huge imports of the refined petroleum products, considering that about 90% of the refined petroleum products consumed in Nigeria are imported.