Connect with us

News

Gas Operators Raises Fear Of Weak Domestic Demand

Published

on

Gas Operators Raises Fear Of Weak Domestic Demand

It was also argued that the Presidential Compressed Natural Gas (PiCNG) Initiative which targets to popularize use of natural gas as alternative fuel for transportation in the country has not gained any level of traction with the motoring public because of the prohibitive cost of converting internal combustion engines to run on gas.

The main concerns,are the high cost of conversion, availability of gas refuel outlets along major highways in the country and sustainability of CNG supply in the market.

To address the cost of conversion, Mr Adeosun proposed that government should incentivize conversion of heavy vehicles and industrial equipment to run on CNG while the mostly older vehicles that dominate private and local transit could be addressed later.

He also called on government to directly intervene with supply of adoption kits including gas cylinders, stoves and cookers to mainly rural and low income Nigerian homes to enable them overcome the cost of switching from dirtier kitchen fuels.

He, again, called for policies that make inclusion of gas reticulation infrastructure and facilities in future and existing residential estates mandatory in order to create more structured demand for liquefied petroleum gas (LPG) and compressed natural gas (CNG) for home applications.

Without developing the last mile demand centers through robust infrastructural development that connects the market with consumers, the panelist argue, the key objectives of the prevailing campaign for gas penetration might not be realized in good time.

Industry pundits who examined the progress of the government’s Decade of Gas programme also stressed the need to urgently determine the real targets of gas penetration initiatives in order to refine the policy strategies in order to achieve the desired goals.

It would be recalled that government has in the past 20 years tinkered with several policies and programmes to harness the country’s huge gas reserves to spur economic and industrial development.

More recently, there has been the Nigerian Autogas Policy, the Nigerian Gas Expansion Policy, Nigerian LPG Penetration Programme, the Presidential CNG Initiative, and many similar schemes.

Earlier policies and programmes which yielded positive but limited results including investments in gas monetization including liquefaction and export, regional supply pipelines, gas-to-liquid (GTL) plants and others were recently consolidated with the recent ones into the Decade of Gas programme.

However, the expected results and dividends from the Decade of Gas programme have proved very slow in creating robust domestic gas market that delivers affordable and cleaner fuel options to homes and businesses in the country.

With persistent pressure from gas producers for returns on solid investments in harnessing produced gas to meet domestic supply obligation, players in the retail end of the chain also struggle with limited results in expanding the market to accept greater volumes and enhance the economies of scale.

Whereas policy drivers in government continue assure the public that efforts are being maximized to bring the citizens cleaner and affordable energy for industrial, commercial and domestic applications; prices continue to defy mitigation.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Senator Eteng Williams Attends 9th Nigeria International Energy Summit in Abuja

Published

on

Senator Eteng Williams Attends 9th Nigeria International Energy Summit in Abuja

The Chairman, Senate Committee on Petroleum Resources (Upstream), Senator Eteng Williams, on Tuesday attended the 9th edition of the Nigeria International Energy Summit (NIES 2026) held at the State House Conference Centre, Abuja.

The Nigeria International Energy Summit (NIES), the official energy event of the Federal Government of Nigeria, remains Africa’s premier platform for energy policy dialogue, investment promotion, and innovation. The summit facilitates high-level engagement among ministers, regulators, industry leaders, and chief executives shaping Africa’s evolving energy landscape.

The summit was formally opened by President Bola Ahmed Tinubu, GCFR, who was represented by the Vice President, Senator Kashim Shettima. The Vice President also welcomed President Adama Barrow of the Republic of The Gambia to the 9th edition of the summit.

Declaring the summit open, President Tinubu emphasized the strategic importance of energy to global peace, prosperity, and stability. He noted that Nigeria is prioritizing the optimal utilization of its vast natural gas reserves as a transition fuel while expanding its renewable energy capacity.

“Energy must unite communities, stabilize economies, and secure futures. It must power factories, illuminate homes, fuel innovation, and build trust between government, investors, and citizens,” the President stated.

“Nigeria stands ready to collaborate with Africa, global partners, and the private sector to deliver energy that is secure, affordable, cleaner, and inclusive.”

In his remarks at the summit, Senator Eteng Williams underscored the need for Nigeria to remain focused on building investor confidence through the full and effective implementation of the Petroleum Industry Act (PIA). He stressed that this must be supported by strong, transparent, and predictable regulatory institutions to attract sustainable investments into the upstream sector.

The NIES 2026 attracted heads of delegation and senior government officials from across the globe, leaders of international energy organizations, chief executives of global and indigenous energy companies, development finance institutions, and representatives of host communities.

Other notable dignitaries in attendance included President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea (represented), the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mr. Bayo Ojulari, and the Chairman of the Independent Petroleum Producers Group (IPPG) and Managing Director of Aradel Holdings, Mr. Adegbite Falade.

Continue Reading

News

TotalEnergies Reaffirms Commitment To Local Content Development

Published

on

TotalEnergies Reaffirms Commitment To Local Content Development

TotalEnergies has reaffirmed its commitment to continuously improve initiatives that will improve on its local content delivery.

Speaking at the 9th Nigerian International Energy Summit, Mr. Cyprian Ojum, Deputy General Manager, Nigerian Content, TotalEnergies, emphasized that local content is a strategic priority, not just a compliance checkbox.

He stated that the Nigerian Oil and Gas Industry Content Development Act of 2010 is clear: every operator must treat local content as an operating philosophy, focusing on retaining value locally.

“This week, we are discussing content as a strategic priority. We are here to tell a story, one that centers on local consciousness. This is not about ticking a compliance checkbox or fulfilling a political obligation. It is about having a deliberate plan”

“The Nigerian Oil and Gas Industry Content Development Act of 2010 is very clear, every operator, alliance partner, project promoter, contractor, or any entity involved in monitoring the oil and gas industry in Nigeria must treat local content as an operating philosophy”

“From the moment a project is conceived, the key question becomes: what quantity of value will be retained locally at the end of this project? That is precisely how local content is defined under the 2010 Act. Project design must therefore be driven by value retention”.

“This is why, at the early stages of our projects, we engage in extensive iterations with the SDLD. We make multiple visits to the NCDMB and sit with the Project Certification and Operations Department to review and refine our Nigerian Content Plan.”

“As mentioned earlier, the Act covers 17 service categories and over 300 subsections, each with clearly defined minimum and maximum local content thresholds. Whether the activity involves fabrication, construction, procurement, installation, transportation, drilling, mud services, or other operations, there are specific percentages that must be achieved, he said.

Ojum emphasized that local content is not just about compliance, but about building expertise and retaining value in-country. He cited the Agena project as an example of successful capacity building and value creation.

“Beyond value retention, Sections 10, 27, 28, 29, and 30 of the Act emphasize training Nigerians and developing capacity. For us, performance-driven local content is anchored on capacity building”.

“Take the Agena project as an example. Capacity development was deliberately built into the project through infrastructure investment. When LADOL and the Samsung–LADOL collaboration were referenced earlier, that speaks directly to TotalEnergies’ commitment.The largest FSO in Nigeria was delivered through this project”

“Within the Agena project alone, about 200 Nigerians were trained in critical skills that are actively deployed across the industry today not only within TotalEnergies, but also across other companies.

“Today, Agena contributes nearly 10 per cent of TotalEnergies’ global production. That level of impact underscores the scale of value created in Nigeria”, he said.

He explained that Total Energies’ approach includes: Human Capacity Development, designed to respond to industry needs, focusing on sustainability.

Value retention, by prioritizing local value creation and retention, and collaboration, this is done by working with local contractors and NCDMB to meet local content thresholds.

Ojum said TotalEnergies has achieved significant success in local content development, with its IKAN project reaching 95 per cent Nigerian content.

Highlighting the company’s commitment to building expertise and retaining value in the country,Ojum emphasized that Nigerians can deliver complex oil and gas projects to international standards, citing the IKAN project’s success, adding that the Ubata project aims to further push local content boundaries.

Ojum’s remarks highlight the importance of local content in driving Nigeria’s energy industry growth and sustainability.

Continue Reading

News

UK Energy Watchdog Dismisses Dirty Petrol Import Allegations Against Dangote

Published

on

UK Energy Watchdog Dismisses Dirty Petrol Import Allegations Against Dangote

An independent investigation by a United Kingdom-based energy watchdog, Impact Investigators Platform (IIP), has come up with its findings dismissing recent media claims that the Dangote Petroleum Refinery imported substandard petrol into Nigeria.

The organisation after its investigation described the allegations as “technically inaccurate, commercially implausible, and unsupported by verifiable evidence.”

The investigations finds no dirty fuel In a detailed report signed by its lead investigator, Raymond Neil, and released on Friday, in which it confirmed that its independent review of shipping manifests, customs declarations, and refinery process documentation found no indication that Dangote Refinery imported or sold finished petrol exceeding Nigeria’s sulphur limit of 50 parts per million (ppm).

The IIP said it launched an independent probe following viral reports alleging that a vessel delivered high-sulphur petrol to the refinery disguised as locally produced fuel.

However, Neil clarified that the shipment in question was not a finished fuel product but an intermediate feedstock — a common raw material used globally by refineries to optimise production. “Our analysis confirms that the shipment being referenced was a blending component, not a finished petrol product,” Neil stated.

“It was imported strictly for refinery processing and never intended for direct sale to consumers.” According to Neil, refineries worldwide, in Europe, Asia, and the Middle East, routinely import intermediate streams such as high-sulphur catalytic gasoline or straight-run naphtha to balance their production yields. “This is normal industry practice,” he emphasised, “and it does not imply that substandard fuel is being sold to the public.”

The IIP report confirmed that all Dangote Refinery import documentation and clearances were consistent with the regulations of both the Nigeria Customs Service (NCS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery, which operates under a Free Trade Zone licence, is authorised to import intermediate materials for processing, all of which must undergo refining before entering the domestic market.

Neil further explained that the IIP’s assessment involved verifying laboratory test results, refinery utilisation records, and port inspection certificates in both the UK and Nigeria.

None of the reviewed evidence, he said, supported the claim that Dangote imported petrol ready for public consumption. “The sulphur levels cited in those reports belong to intermediate-grade gasoline, not finished petrol. To suggest otherwise is to misunderstand refinery operations,” Neil clarified.

Neil warned that misinformation on technical matters could damage public confidence in Nigeria’s biggest industrial project.

“The Dangote Refinery is a strategic national asset,” he said. “Public debate must be guided by facts, not conjecture.”

The IIP also urged Nigerian authorities to establish a rapid-response verification mechanism to counter unverified claims about refinery operations. Transparency requires both openness and accurate interpretation of data,” Neil noted.

The report further praised the refinery’s strong compliance and audit culture, stating that its internal systems meet the standards of the European Refining Association and the American Petroleum Institute.

“Every product stream leaving the refinery is certified by an ISO-accredited lab,” Neil revealed. “These certificates are regularly submitted to the NMDPRA before any domestic dispatch.” Verdict:

Concluding the investigation, the UK-based watchdog reaffirmed that Dangote Refinery did not import dirty fuel and operates within global best practices. “Our findings show a refinery engaged in legitimate global trade, committed to delivering cleaner fuels that meet international standards,” Neil declared.

Continue Reading

Trending