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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.

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DPR reveals 4 major areas of focus for downstream operations of oil and gas sector, post covid-19, Engr. Sarki Auwalu, Engr. Sarki Auwalu

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.

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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.

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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.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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    Energy

    Nigeria needs about 100,000MW of power – Elumelu

    Tony Elumelu has disclosed that Nigeria needs about 100,000MW to power the economy.

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    Tony Elumelu UBA H1 Year 2019 Tony Elumelu, United Bank for Africa

    Nigeria needs to increase its electricity generation from about 5,000 to 100,000 Megawatts to power the nation’s economy.

    This was disclosed by the Chairman of Transcorp Group, Tony Elumelu in an interview on Arise TV on Wednesday. According to him, the nation needs to stabilize its transmission lines, provide adequate gas supply and strengthen her payment plans.

    He said, “Nigeria needs about 100,000 MW to power the economy. It also needs to stabilize the transmission lines and ensure access to gas supply.

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    For Nigerians to heave a sigh of relief in the sector, it needs to boost generation, fix gas supply to GenCos, boost payment of distribution and ensure power generated are taken by DisCos. Here I must commend the CBN Governor because he has helped to maintain peace in the space.

    Before the end of 2020, NBET used to pay about 20% but it now pays about 50%. It is still a critical sector that still needs investment and stakeholders must ensure it works.”

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    NERC approves N215 billion for Ikeja and Eko DisCo upgrade

    The NERC said the approved upgrades would improve the distribution of power supply by the DisCos.

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    The Nigerian Electricity Regulatory Commission (NERC) announced it has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period.

    The NERC disclosed this in its Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application which was released on Monday and signed by  NERC’s Chairman, Mr. Sanusi Garba, and Mr. Dafe Akpeneye, Commissioner, Legal, Licensing and Compliance.

    PIP and Capital Expenditure (CAPEX) program is expected to take effect from July 1, 2021 to June 30, 2026.

    READ: What to do if your DisCo has not complied with reversed electricity tariff this week

    The NERC said the approved upgrades would improve the distribution of power supply by the DisCos citing public hearing scrutiny in its PIP and Extraordinary tariff review applications in a bid to ensure accountability.

    The approved CAPEX for Ikeja Electric Plc would be N24.38 billion annually from 2021 to 2026, while for Eko Electricity, it would be  N18.75 billion for the same period, totaling N93.76 billion.

    The upgrades would be in the areas of existing network capacity, technological enhancements to reduce outages, and the acquisition of tools to improve network performance.

    READ: DisCos record N273.42 billion shortfall in 2020, receive N542.73 billion from customers

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    What you should know

    Recall Nairametrics reported that a new Extraordinary Tariff Review Applications, 5-year Performance Improvement Plan (PIP) and Capital Expenditure, CAPEX, for the Electricity Distribution Companies (DisCos) was approved by the NERC.

    For the Abuja Electricity Distribution Company, AEDC, the company proposed to undertake numerous interventions to improve service delivery to customers. Over the next five years, the proposed interventions will allow AEDC to achieve substantial improvement in service delivery and increase the number of new customers from the current level of 1,214,259 to 3,450,695.

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