‘Oil pipe mill scheme to save N75b yearly’

[TGD]

 BPE releases agreement for revised PHCN sale

ATCON faults power sector reform

AN oil pipe mill scheme that is kicking off in 2013 will help the country retain $500 million (about N75 billion) spent yearly to add value and increase local supply and processing activities.

The mill, which is seen as a cornerstone facility to attract a cluster of industries, is expected to begin operations by the first quarter of 2013 and employ at least 5,000 people directly and indirectly.

The Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa, who disclosed this while speaking during the presentation of the project to officials of international operating oil and gas companies, in Lagos yesterday, said that it was geared to ensure compliance with the Nigerian Content Act, which provides that all steel pipes be sourced locally.

According to the Executive Secretary, a recent industry study sponsored by Shell Nigeria revealed that the Nigerian oil and gas industry will within the next five to seven years demand about 4.5 million tonnes of Seamless Steel Pipes (SMLS), Longitudinal Submerged Arc Welded Pipes (LSAW), Helically Submerged Arc Welded Pipes (HSAW) and High Frequency Welded Pipes (HFW). Of this demand profile, he said that about 1.5 million tonnes would be for LSAW pipes.

He noted that the demand for the pipes would be driven by oil field developments and crude production, industrial and domestic natural gas distribution projects (gas revolution projects) and export gas pipeline projects.

Also, the Bureau of Public Enterprises (BPE) has released agreements in line with the revised transaction timeline for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN).

The revised transaction was against the backdrop that the industry regulator, Nigerian Electricity Regulatory Commission (NERC) and other key stakeholders are working towards finalising the industry agreements and the Multi-Year Tariff Order (MYTO).

The revised timeline also includes an extension of the deadline to confirm the intention to bid and pay the due fee for purchasing the Requests for Proposals (RfP) documents

According to a statement issued by the bureau spokesman, Chukwuma Nwoko, yesterday, which was made available to The Guardian, "the PPA is executed between power generators and the power off-taker. For now, the off-taker is the Nigeria Bulk Electricity Trading (NEBT) Plc. NEBT is also known as the Bulk Trader."

Meanwhile, the Association of Telecommunications Companies of Nigeria has again said that the existing power reforms may not be in the interest of the investments of its members and ultimately those of Nigerians.

President ATCON, Mr. Titi Omo-Ettu, who was responding to a question on Internet access said: "Internet access is now about providing it at broadband level because it is the total concept solution to the problem of reach, access and affordability.

"If well-managed, we should be able to provide substantial broadband access to our citizens at a price they can pay. The greatest challenge is public electricity supply, which incidentally does not seem to be getting a focused attention.

"As things stand, our association does not see hope in the reform, which current managers of the power industry are adopting. The posturing of Minister of Power who is working a four-year plan to assure steady public power is untrustworthy as it is devoid of quality strategy and thoughtfulness. A true liberalisation strategy in which licensees for power service delivery are permitted without any encumbrances and linkage to existing inefficient power management of PHCN system is required. An attempt by Prof. Nnaji to work a minimum four-year plan exposes short-sighted planning as he himself will have to break a longevity record if he stays in the post long enough to see such weak plans implemented."



The Guardian