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Energy
DPR releases guidelines for establishment and operations of downstream gas facilities
DPR has rolled out guidelines for the establishment and operations of downstream gas facilities.
The Department of Petroleum Resources (DPR) has rolled out guidelines for the establishment and operations of downstream gas facilities across the country.
It states that companies seeking to establish gas-dispensing facilities would be required to obtain three approvals and licences, among others, before commencing operations.
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While making the disclosure in a public statement in Abuja, the DPR’s Director/Chief Executive, Mr. Sarki Auwalu, said the agency has commenced an investigation into the gas explosion incident that happened at Baruwa area, Ipaja, which claimed several lives and destroyed over 20 properties.
READ: FG estimates that alternative petrol, CNG would cost N97 per litre
Auwalu disclosed that preliminary reports from DPR investigations revealed that the facility was operating without a licence and was carrying out illegal operations which resulted in the unfortunate incident. He promised that the DPR would continue to update the public on the progress of its ongoing investigation into the incident, while assuring that the agency will continue to collaborate with all stakeholders to ensure safe operations of all oil and gas facilities in Nigeria.
READ: Nigeria’s explosions timeline from 2019
On the guidelines for establishment and operations of downstream gas facilities, the Chief Executive Officer of the DPR said it stipulates the minimum requirements, procedures, and conditions to be fulfilled before the grant of approvals or licences for the construction, installation, modification, takeover, relocation, and operations of downstream gas facilities in Nigeria.
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Some of those guidelines include;
- Guidelines for the establishment and operations of Liquefied Petroleum Gas, LPG, also known as cooking gas, refilling plants and retail outlets;
- Guidelines for establishment of autogas refueling stations and add-on gas facility; and
- Guidelines for the establishment of gas storage and utilization.
READ: Gas station explosion: Lagos to enforce stiffer measures on operators, blames negligence
Auwalu explained that the guidelines were developed to enhance gas penetration and utilization, enhance operational safety as well as ease of doing business in the oil and gas sector.
He said: “Companies intending to establish these facilities must satisfy all necessary requirements stipulated by DPR and obtain the underlisted applicable approvals: Site suitability approval; Approval to Construct (ATC)/Approval to Install; and Licence to Operate.
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“Necessary amenities and equipment like functional automated/manual leak tester, functional fire alarm system, and mounted gas detectors, adequate fire water storage, and sprinklers, perimeter fence with firewall amongst others must be provided in the facilities.”
He emphasized that the objective of the guidelines was to ensure that the baseline standard regarding Health, Safety, and Environment, HSE, was achieved and maintained in all the facilities.
READ: DAPPMAN highlights critical role of warehousing and logistics in growth of downstream sector
What you should know
This is coming a few days after the last gas explosion at the Baruwa area of Ipaja, Lagos which claimed several lives with many properties destroyed. The Lagos state government in its investigation of the incident blamed the operators for negligence and non-adherence to safety standards in their operations.
That was one in a series of gas-related explosions that have occurred in Lagos and other parts of the country in the last few months with several reported casualties.
Energy
Africa’s electricity generation will double by 2030, fossil fuel to be dominant – Research
Fossil fuel is expected to dominate Africa’s energy mix by the end of the decade.
A new research from the University of Oxford has predicted that the total electricity generation across the African Continent will double by 2030.
The study also expects that fossil fuel will still be dominant in Africa’s energy mix by the end of the decade, accounting for two-thirds of all generated electricity across Africa, posing a potential risk to global climate change commitments.
READ: AfDB approves a grant of $7m for renewable mini-grid industry in Africa
An estimated 18% of the generation is set to come from hydro-energy projects, which have their own challenges, such as being vulnerable to an increasing number of droughts caused by climate change.
The study, which looked into Africa’s energy generation landscape, uses a state-of-the-art machine-learning technique to analyse the pipeline of more than 2,500 planned power plants and their chances of successful commission.
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The study shows the share of non-hydro renewables in African electricity generation is likely to remain below 10% in 2030, although it varies by region.
READ: AfDB supports Africa’s flagship climate initiative with $6.5bn
What there are saying
Galina Alova, Study Lead Author and Researcher at the Oxford Smith School of Enterprise and the Environment said that:
- “Africa’s electricity demand is set to increase significantly as the continent strives to industrialise and improve the wellbeing of its people, which offers an opportunity to power this economic development through renewables.”
- “There is a prominent narrative in the energy planning community that the continent will be able to take advantage of its vast renewable energy resources and rapidly decreasing clean technology prices to leapfrog to renewables by 2030 – but our analysis shows that overall it is not currently positioned to do so.”
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Philipp Trotter, Study Author and Researcher at the Smith School said:
- “The development community and African decision-makers need to act quickly if the continent wants to avoid being locked into a carbon-intense energy future. Immediate re-directions of development finance from fossil fuels to renewables are an important lever to increase experience with solar and wind energy projects across the continent in the short term, creating critical learning curve effects.”
READ: DisCos ask FG to reduce cost of gas in power generation
What you should know
- The study suggests that a decisive move towards renewable energy in Africa would require a significant shock to the current system. This includes large-scale cancellation of fossil fuel plants currently being planned.
- In addition, the study identifies ways in which planned renewable energy projects can be designed to improve their success chances – for example, smaller size, fitting ownership structure, and availability of development finance.
- Fossil fuels include coal, petroleum, natural gas, oil shales, bitumen, tar sands, and heavy oils. All contain carbon and were formed as a result of geologic processes acting on the remains of organic matter produced by photosynthesis, a process that began in the Archean Eon (4.0 billion to 2.5 billion years ago).
- These non-renewable fuels supply about 80 percent of the world’s energy. They provide electricity, heat, and transportation, while also feeding the processes that make a huge range of products, from steel to plastics.
Energy
FG insists on no petrol, electricity subsidies in 2021
The FG has insisted that its policy on the removal of subsidies on fuel and electricity in the 2021 budget remains.
The Federal Government has insisted that it will go ahead with its policy on the removal of subsidy on Premium Motor Spirit (Petrol) and electricity, with no provision made in the 2021 budget for their subsidy.
This disclosure was made by the Minister of Finance, Budget and National Planning, Zainab Ahmed, during a virtual public presentation of the Breakdown and Highlights of 2021 Appropriation Act on Tuesday in Abuja.
READ: FG posts 27% revenue shortfall in 2020 as budget deficit hit N6.1 trillion
What the Minister for Finance is saying
While answering a question on whether there would be a return to petrol subsidy following the reduction in petrol price about a month ago, the Minister said the answer is a flat no.
Ahmed said,
- “We are not bringing back fuel subsidy. We didn’t make provision for fuel subsidy in the budget. The impact of what was done was reducing some of the cost components that were within the template. And also related to it, on matters of electricity subsidies, no provisions have been made for subsidy for fuel and no provisions have been made for subsidy for electricity.”
READ: Reps raise alarm over N200 billion unclaimed dividends in 2020
Also, while talking about the new Finance Act 2020, which took effect from 1 January 2021, Ahmed said the act adopts counter-cyclical fiscal policies in response to the Covid-19 pandemic by providing fiscal relief to taxpayers.
The Minister stated that the government would hold the unclaimed dividends of investors in the stock market in trust and would make the fund available when needed by an investor.
READ: N200 billion Unclaimed Dividend: Securities dealers reject FG’s plan to manage fund
She said:
- “On the issue of unclaimed dividends and government’s accounts and projections, there would be as much as N850bn to be realized in the special trust fund of unclaimed dividends. Government is keeping the money in trust for the beneficiaries. At any time, a registrar or a bank confirms that this is the true and bonafide beneficiary of this fund, then the government will release from that trust fund to the investor who has it.”
What you should know
- It can be recalled that the Federal Government, in early 2020, announced the full deregulation of the downstream sector of the oil industry which culminated in the removal of petrol subsidy.
- The government said that following a sharp drop in revenue, it was becoming increasingly unsustainable for it to continue to subsidize the product with funds that can be used for the development of critical infrastructures in the country.
- Similarly, it also pointed out that the removal of subsidy on electricity tariff and ensuring the implementation of the right pricing for power will help attract the needed investment in that sector.
Energy
Daystar Power secures $38m funding to grow its West African’ operations
Daystar Power, provider of hybrid solar power solutions to businesses in West Africa, today announced a Series B investment of $38 million.
Daystar Power has announced a Series B investment of $38million.
The company expects to grow its operations in its key markets of Nigeria and Ghana, while deepening its presence in other regional countries such as Côte d’Ivoire, Senegal and Togo with the funds raised.
The company expects to expand its installed capacity to over 100 megawatts – enabling it to meet demand from its clients in the financial services, manufacturing, agricultural and natural resources sectors.
What you should know about the funding
- Taking into account the previous round by Verod Capital and Persistent Energy, Daystar Power has received equity investments totalling $48 million.
- The funding is led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI).
- IFU is joined by new investors STOA, a French impact infrastructure fund, Proparco, the French DFI, backed by a guarantee from the European Union under the African Renewable Energy Scale-Up facility (ARE Scale-Up); and Morgan Stanley Investment Management.
What they are saying
The CEO and Co-founder of Daystar Power, Jasper Graf von Hardenberg, stated that:
- “By offering our commercial and industrial clients cheaper, reliable and cleaner power, we have seen a more than 50-fold increase in power-as-a-service revenue over the last two years. African businesses are realizing that solar power stand-alone or in tandem with a second power source is a superior energy alternative to the often-unreliable grid or too expensive, polluting diesel generators.”
Thomas Hougaard, Vice President sub-Saharan Africa, IFU said:
- “We believe that Daystar Power has the right elements – the client base, technology, engineering expertise, and executive leadership to scale off-grid solar across West Africa. Not only is Daystar Power at the forefront of a growing market, it is helping to accelerate the adoption of renewable energy in some of Africa’s fastest growing cities.”
Obichukwu Nwachukwu
October 12, 2020 at 3:35 pm
Hello. Thank you for the report. However and as a follow-up report, could you please obtain and publish ALL the documents containing ALL these new/updated DPR guidelines? Alternatively, you could consider adding any relevant website links on this subject to the proposed follow-up report. Keep up the good work.