The Petroleum Technology Association of Nigeria (PETAN) has proposed a “commonwealth solution” to bolster Nigeria’s oil and gas sector, which is the privatisation of the nation’s oil and gas pipelines.
The move, according to PETAN, is crucial for ensuring efficiency and sustainability within the industry.
PETAN Chairman, Mr. Wole Ogunsaya, gave the charge at the Nigeria International Pipeline and Security Conference (NIPITECS) organized by the Pipeline Professionals Association of Nigeria (PLAN) in Abuja recently.
Ogunsanya explained that the commonwealth solution of privatizing Nigeria’s pipeline network stems from the opportunity the country has in its private investors to hold 51% ownership of the nation’s pipelines in conjunction with oil producers, including the NNPC Ltd and the Independent Petroleum Producers Group (IPPG) that own the crude oil as shareholders.
According to him, this model is not new in Nigeria because it’s the working model that has kept the NLNG to remain a pride of the industry, adding that there is equally more room for improvement to establish more LNGs’ which would lead to an increase in gas feedstock.
“All over the world, life expectancy in a growing population is highly impacted by energy security, which ensures the availability and access to healthcare alongside access to infrastructure that enhances living standards, affordable food, better housing, and education. With Nigeria’s life expectancy pegged at 54 years old (2023 UN Data), it means that Nigerians lack access to energy security and the basic necessities of life.
For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production, refining, and transporting same to the downstream sector.
Doing this with in-country capacity will guarantee Nigeria’s position as one of the top 20 economies in the world.” He expressed regret that Nigeria’s gas failed to use the proceeds of its crude oil sales over the decades to build the country.
He, however, commended indigenous companies making up professional associations which included; PETAN and PLAN for helping to build capacity and creating jobs in a local content drive that has a multiplier effect yielding results along the value chain of the industry and the regional economy.
“PLAN, representing the “lynch pin” of the oil and gas industry without which the resources wouldn’t be effectively transported to where they are needed, be it refineries or gas plants and further to power plants, cannot be overlooked in the development of oil and gas and there is a lot to do in partnership with them to ensure energy security for all.
Luckily, the collaboration with PETAN has always been on a sound footing as most members belong to both associations.”
Ogunsaya posited that the country should use all forms of energy sources at its disposal to close its energy gap, adding that it is impressive to note an increase in the use of solar energy across the country, but charged stakeholders to invest in the solar technology rather than importing.
He was, however, quick to point out that the demand for oil and gas would continue to increase, even if not at the rate we had it in the past, but will remain relevant to the growth of developing countries.
He congratulated the Chairman of the Board of Trustees of PLAN, Mr. Geoff Onuoha, who, along with many other members of the association, belongs to PETAN.
He pledged PETAN’s continued support for its advocacy activities which aim to create awareness about the importance of pipelines in the nation’s oil and gas industry.
Source: thesun
