Energy
Most Nigerians pay for electricity through estimated bills – survey
BY: Justice Godfry
The lower chamber of the National Assembly commenced a process to prohibit the issuance of estimated bills to consumers by electricity Distribution Companies (DisCos).
The passage of the Bill, which scaled third reading on the floor of the Green Chamber, would ensure that electricity consumers must be provided with a prepaid meter, hence ending the estimated billing system and the system of paying for power not consumed.
In line with the above, NOIPolls presents excerpts from the results and findings of its National Survey on pre-paid meter ownership in Nigeria which was conducted in 2017.
The survey revealed that ownership of fixed pre-paid metering is limited to only 9 percent of the population as the time this survey was conducted.
According to the 2018 fourth quarter power report released by the National Bureau of Statistics (NBS); the report disclosed that the total number of electricity consumers with prepaid meters supplied by the 11 distribution companies (DisCos) in the country are 1,669,675.
More findings from the 2017 National Survey indicated that the rest of the population is divided among 41 percent who use post-paid meters and 50 percent who do not have a meter, but simply pay fixed amounts of money for electricity.
Being the most efficient way to distribute electricity, usage of pre-paid meters is highest in the South-East zone (13 percent) and lowest in the North-Central and North-West (7 percent apiece).
Electric power usage in most cases is charged to non-urban users based on estimates that do not account for periods of power failure that are often prolonged. As expected, urban residents are twice as likely as rural residents to have pre-paid meters.
The bill seeks to amend the principal Act by creating new sections 68 to 72, which states that (Section 68 – (1)) estimated billing methodology is hereby prohibited in Nigeria.
In subsection (2). it provides that “Every electricity consumer in Nigeria shall apply to the Electricity Distribution Company carrying out business within his jurisdiction for a pre-paid meter and such consumer shall pay the regulated fee for pre-paid meter to be installed in his premises and the Electricity Distribution Company shall within 30 days of receiving the application and payment install the pre-paid meter applied for in the premises of the consumer.”
The Nigerian Electricity Regulatory Commission (NERC) as at March 1st 2017, informed electricity consumers (Maximum Demand (MD) customers only not residential) without prepared meters to stop paying electric bills presented by Distribution Companies (DisCos) on the basis of estimated billing methodology.
It is equally necessary for NERC to set a deadline for DISCOs to provide prepaid meter billing system for residential customers, especially the 50 percent of Nigerians who do not have a meter as shown in chart below, but simply pay incommensurate amounts of money for electricity.
In conclusion, the survey has shown that access to prepaid electricity metering in Nigeria is too low, therefore further reforms of the electricity sector are imminent. It is essential to further improve accountability in the sector by subsidization of prepaid meters to enable low-income households acquire and use them as 50 percent of the population pay for electricity supply by estimated billing system which does not account for periods of power failure that are often prolonged.
In a bid to eliminate the estimated billing practices in the Nigerian Electricity Supply Industry (NESI), it imperative for the management of all electricity distribution companies (DisCos) and other stakeholders to attract private investment into the metering service industry.
This will help close the metering gap through accelerated meter roll out and enhance revenue assurance for the NESI.
The 2018 Meter Asset Provider Regulations issued by NERC will relieve the DisCos of the burden of providing metering services and enable them to give more focus on their core responsibility of power distribution.
Also, Nigerian-owned meter manufacturing companies and meter assembling plants can expect to a have greater participation in the metering industry as MAPs are required to obtain at least 30 percent of their meters from local sources.
Finally, this will lead to additional foreign direct investment into the country, while also ensuring transfer of technology to Nigeria.
Energy
AVEVA is providing data management support for renewable natural gas projects
Reporter: Godwin Ezeh
Key Highlights
● AVEVA’s industrial information infrastructure has been selected by Archaea Energy to provide key data management support
● AVEVA’s industrial software to optimize performance across Archaea’s RNG plants
AVEVA, a global leader in industrial software driving digital transformation and sustainability, has been selected by Archaea Energy, the largest renewable natural gas (RNG) producer in the US, to build a comprehensive operations data management infrastructure.
Using AVEVA’s software, Archaea Energy can collect, enrich and visualize its real-time operations data, enabling performance analysis across its growing network of plants.
Using AVEVA PI Data Infrastructure, a hybrid solution with cloud data services, the plants will be able to share data to highlight operational opportunities and optimize efficiency.
Caspar Herzberg, CEO, AVEVA, stated,
“Through this collaboration and the use of AVEVA PI Data Infrastructure, Archaea’s growing network of plants will have streamlined operations with accurate performance analysis throughout the expansion. AVEVA’s CONNECT software platform leverages industrial intelligence from a central location, making it easier to deploy additional digital solutions in the future.”
“As the largest RNG producer in the United States, we are dedicated to delivering reliable, clean energy,” said Starlee Sykes, chief executive officer of Archaea Energy. “This relationship will allow us to optimize operations and offer detailed performance analysis as we continue to expand across the country.”
…OML 13 Asset Eyes 80,000 bpd by End of 2025
In a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.
It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain.
During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market.
“Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers.
He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities.
Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.
“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.
He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects.
Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities.
He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.
He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries.
Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.
The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.
The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.
The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.
The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV).
This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.
Energy
NNPC Ltd Set to Supply 100mmscf/d Gas to Dangote Refinery
…10-year Deal to Boost Local Production, Revamp Industrial Growth, reports Ikenna Oluka
The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
This development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The agreement represents a milestone for both NNPC Ltd and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country.
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