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Energy

Waltersmith Petroman Oil to expand output by 600%, as it opens mini-refinery soon

The refinery is expected to contribute about 271 million litres of refined products.

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Waltersmith Petroman Oil to expand output by 600%, as it opens mini-refinery soon, NNPC boss blames failure of refineries on negligence, says there are no excuses

Waltersmith Petroman Oil Limited, Nigeria’s independent producer, has reportedly disclosed its plan to increase the output of its 5,000 barrel a day capacity mini-refinery in Ohaji/Egbema, Imo State to 30,000 barrels a day by 2022. The refinery, which is 98% completed, is expected to be commissioned in September 2020.

This was disclosed by the Chief Executive Officer of the company, Chikezie Nwosu, on Wednesday, according to Bloomberg.

“We expect that by September we should be ready to test-run the refinery, now at 98% completion. We are going to grow its capacity by an additional 25,000 barrels a day to make it 30,000 barrels,” he said.

READ: Malabu Oil Loot: UK set to refund Nigeria’s $85m

The Back story: In December 2019, Nairametrics reported that Waltersmith Petroman Oil Limited had been awarded an oil block in Equatorial Guinea’s Niger Delta basin known as Block EG-23.

Waltersmith Petroman Oil Limited and Hawtai Energy Hongkong were granted a 40% participating interest each in the oil block, while Equatorial Guinea’s national oil company, GE Petrol, was granted 20%. This is according to a statement from the Equatorial Guinea Government.

Nwosu explained that the earlier plan to commission the refinery, which was built by Houston-based VFuels, in May was hampered by the Coronavirus pandemic.

READ: NNPC states why it failed to fix refineries, to build 200,000 capacity refinery

The refinery, which is expected to primarily serve the South-Eastern part of the country, is expected to contribute about 271 million litres of refined products including Diesel, Naptha, HFO and Kerosene annually to the domestic market and create both direct and indirect jobs particularly within the host communities.

According to him, the crude processing plant is part of a bigger industrial energy park that will serve as a manufacturing base for oil and gas components.

“The project includes a 30-megawatt power station, which Waltersmith will expand to about 300 megawatts,” he added.

READ: Here’s why Total is selling its 12.5% stake in Nigerian oil block 

Why it matters: Nigeria has desperately tried to revive its refining industry that has languished for years.

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The nation’s refineries did not refine a single barrel of crude oil in a while year, but reportedly incurred a combined operating expense of N142.07 billion, according to the latest earnings report from the Nigerian National Petroleum Corporation, NNPC.

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The NNPC attributed the abysmal operational performance of the refineries to an ongoing revamping process aimed at further enhancing their capacity utilisation once completed.

The refineries, which are located in Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity.

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Meanwhile, Africa’s richest man, Aliko Dangote, is also building a refinery with a capacity of 650,000 barrels a day that will help cut Nigeria’s $7 billion annual fuel-import bill.

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Energy

LNG boss tasks FG to begin the monetization of Nigeria’s gas

Mr Attah has urged the FG to take the gas sector more seriously as the future of Nigeria’s energy lies with it.

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The MD and CEO of Nigeria LNG Limited Mr. Tony Attah has tasked the Federal Government to begin the revamping and monetization of the Gas sector in Nigeria.

He made this statement while making his presentation at the 2nd virtual Nigerian Gas Association (NGA) Industry Multilogues, with the theme: “Powering Forward, Enabling Nigeria’s Industrialization via Gas.”

Mr. Tony Attah drew the attention of the audience to the hidden treasure in the Nigerian Gas industry which he believes is not getting enough attention from the government.

On the future of gas as an alternative energy source, Mr. Attah stated that the developed world is already keying into gas as an alternative to crude oil. Gas has proven to be a cleaner and more sustainable alternative.

He exclaimed that Nigeria is very rich in gas and yet poor in energy. Nigeria is the 9th country with the largest gas reserves in the world but makes very little use of it.

Mr. Attah went further to paint a clear picture of the promise of investing in gas using the success achieved by Qatar. Qatar is currently the largest LNG exporter in the world.

We just touched on a quick case study of Qatar. Someone mentioned Qatar already from a poor fishing country to a gas giant and it took just 10 years, which is why we, as Nigeria LNG, firmly believe in the conversation and the narrative about the declaration of the decade of gas.

“We believe it is possible. If you look at Qatar from 1995, when they really went into gas development, we were just two years behind Qatar. So, Qatar’s first LNG was in 1997.

Nigeria’s first LNG was in 1999, just two years behind. But then, within 10 years, because of the deliberateness of the government and focus on gas, they have gone to 77 million tonnes and we are at best, 22 million tonnes,” Attah said.

Mr. Attah stressed further the importance of the gas sector in Nigeria’s future. He recalled that the Nigerian Government declared 2021-2030 as the decade of gas. He pleaded with the government to take the sector more seriously as the future of Nigeria’s energy lies with it.

Gas is the future. That future is now, and just as the Minister of State has made us to realize, gas is food in fertilizer. Gas is transport as you saw in the Auto gas project that was declared.

Gas is life, as a matter of fact, for cooking, for heating, for existence. Gas is development in manufacturing, gas is power. Gas is everything. “We think it’s time for gas. It’s time for Nigeria to diversify and that is why we fully support the decade of gas,” he said.

What you should know

  • Early last year, the director of the Department of Petroleum Resources (DPR) Mr Sarki Auwalu confirmed that Nigeria’s proven gas reserve stood at 203.16 trillion cubic feet.
  • Nigeria has the 9th largest gas reserves in the world. It is also the 6th largest exporter of gas.
  • The Federal Government declared the year 2021–2030 as the “Year of the Gas“. It pledged to finally kick start the development and commercialization of Nigeria’s huge gas reserves.

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Energy

Nigeria breaks transmission record again, hitting 5,801.60 MW

The TCN has broken its own transmission record three times in the space of a week.

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FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

The Transmission Company of Nigeria announced another record, as grid transmission hits a peak of  5801.60 MW.

This was disclosed by the Minister of Power, Engineer Sale Mamman in a statement on Tuesday evening.

“Back-to-Back Peak Transmission, Yesterday, 1st of March at 9:30 pm, we hit a new HIGH,” he said.

He added that 5801.60 MW transmitted at a frequency of 50.09 hz.

“Next Level heights for the Power Sector. Kudos to all at the TCN & MoP striving towards stable energy for Nigerians,” he added.

In case you missed it 

  • Nairametrics reported yesterday that the Transmission Company of Nigeria (TCN) announced that it hit another record milestone on transmission, as it recorded a national peak of 5,615.40MW.
  • On March 1st that the TCN announced it has broken its transmission record once again, after hitting a record of 5,584.40 MW.

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