All Posts in "Day: March 30, 2024"

Egbin Power Gets FG’s Assurance On Debt Payment,Increased Gas Supply

Mohammed Shosanya

Minister of Power, Adebayo Adelabu, has affirmed Federal Government’s commitment to gradually offset the debt owed Nigeria’s largest power generation company, Egbin Power, starting next month April, while noting that constraints of gas supply and foreign exchange are also being tackled.

He spoke during his visit to the power Plant as part of his strategic measures to strengthen understanding among stakeholders, offer robust support to players, and address the challenges in the sector, with the overall aim of boosting power supply in Nigeria.

Affirming the commitment,the Minister said: “The Federal Government is prioritising paying down on the outstanding debt and I have assured the Board and Management of Egbin Power that, effective April we will start paying as a form of encouragement to continue to have them in operations.”

On the constraints encountered by power generation companies in accessing Foreign Exchange, the Minister explained that crucial steps are being taken to prioritize allocation of Forex to the power generation companies.

“Forex sourcing has been a major constraint to effective maintenance of the facility. I have seen what we have on ground here, and the critical need for spares and tools for continuous maintenance. We will liaise with the Central Bank of Nigeria (CBN) to prioritize Foreign Exchange allocation to the power sector.

“This will ensure the companies are able to ramp up capacity in terms of output. It is not just peculiar to Egbin Power Plant, it is across all the power generating Plants. They need Forex for them to be able to maintain the turbines, replace tools and spares. This has been a major issue. I am going to takes steps to ensure I liaise with the CBN to see how they can prioritize Forex allocation to the power generating companies,” the Minister said.

Speaking on challenges of gas supply, he explained that engagements were held with the Ministry of Petroleum Resources and gas suppliers as part of measures to guarantee payment of debts and resolution of the gas constraints.

“Gas shortage has been an impediment to almost all our gas power plants. And we already had conversation with the Honourable Minister of Petroleum Resources. We are also meeting with the gas suppliers to plead with them and have an understanding that the FG is prepared to start paying down on the debt that we owe the gas supply companies.

“We need to make some cash injection in terms of payments, we want to give them some guaranteed debt instruments in terms of promissory note. And we are looking at allowing them access to Nigerian gas wells. So that this will be used to defray the outstanding debt of the gas suppliers over time,” he explained.

He commended the Management team of Egbin Power for its robust investment to improve, sustain and maintain the Plant’s infrastructure and facility, while contributing largely to the sector despite the challenges.

Speaking on the impact of the debt and gas constraints on the Plant, the Chief Executive Officer (CEO),Egbin Power, Mokhtar Bounour said: “One of the major challenges we are facing is gas constraint, which is not allowing us to run the full capacity of the Plant. It requires a lot of investment efforts to keep the units running and safe.

“The other issue is the accumulated debt which the Minister discussed with us. On our part we are adequately ensuring the maintenance, availability of the Plant and its efficiency. We are investing a lot to get these units to run optimally. This requires millions of dollars in investment,” Bounour explained.

He commended the Minister for his commitment to address the challenges.

“We highlighted the challenges we are facing, and the Federal Government, through the Minister of Power, has promised to start solving them gradually so we can start seeing improvements in the near future. We hope that the liquidity challenge will be solved soon as the Minister has promised,” Bounour added.

admin by — March 30, 2024 in Power 0
Asharami Synergy Partners NMDPRA On Promotion Of Clean Energy

Mohammed Shosanya

Asharami Synergy,a Sahara Group Downstream Company,has reiterated its commitment to promoting the adoption of cleaner fuels in the sector, working in collaboration with regulatory authorities and delivering exceptional fuel solutions responsibly.

At the Asharami Synergy 2024 Customer Forum, Managing Director, Foluso Sobanjo said the company remained dedicated to spearheading the quest for environmental sustainability in Nigeria’s downstream operations across the sector’s value chain.

He told the company’s customers that Asharami was delighted to serve as their preferred energy solutions provider, adding that Asharami had since commenced the supply of low sulphur fuels in line with the Afri-5 specifications prescribed by African Refiners and Distributors Association (ARDA) and in compliance with the provision of the Petroleum Industry Act (PIA) 2021 which limits the sulphur content in Gasoil/Diesel to 50ppm (parts per million).

“Given our track record of transparency, integrity, and service excellence in the sector, we are using this forum to keep our esteemed customers abreast of new developments in the sector, especially the switch to the AFRI-5 low-sulphur specification which makes diesel appear lighter. This does not reduce the quality or performance of the product as all parameters remain the same as specified by the Standards Organization of Nigeria (SON),” he said.

Speaking at the forum, Engr. Oluwakayode Oyegoke, Head, Distribution System Storage Infrastructure, Lagos SW, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), reassured the public that the new directive would help reduce pollution and promote the well-being of Nigerians.

He stated: “The NMDPRA would like to commend Asharami Synergy for providing this platform to help create more awareness and educate the buying public about the new fuel specifications. The Authority would also like to assure all stakeholders that the products in circulation meet all requirements for safety, quality, and environmental sustainability. The industry is evolving, and we have to move with the world towards cleaner energy. Economically, the transition to low-Sulphur fuels can attract investment, create jobs, and reduce the country’s carbon footprint.”

Chief Marketing Officer, Asharami Synergy, Adeoti Onabolu commended the company’s customers for their patronage, stating, “serving you is a privilege we hold dear, and your satisfaction is the ultimate success factor and motivation for us to diligently and unceasingly work towards bringing energy to your lives and businesses responsibly.”

Onabolu said Asharami leverages Sahara Group’s global footprint and strategic investments to deliver exceptional fuel solutions and expand its operations across sub-Saharan Africa.

She said Asharami Synergy’s vertically integrated downstream business encompasses the entire value chain from top quality product sourcing to the final sales to the end consumers. “We build, own, operate, maintain, and manage multiple storage facilities across several locations to the best international standards and manage an efficient, safe, and technology-driven logistics and supply operation via vessels, trucks, pipeline and rail to ensure product integrity and safety. Our International Standards Organisation (ISO) certifications reinforce Asharami’s distinctive mark of service excellence, quality, safety, innovation, and environmental sustainability,” she said.

Asharami Synergy’s ISO certifications include the Quality Management System (QMS) ISO 9001:2015, Environmental Management System (EMS) ISO 14001:2015 and Occupational Health and Safety Management System (OHSAS) ISO 45001:2018.

The company’s Chief Operating Officer, Adekanmi Adesola said Asharami commits to driving product quality and availability, competitive pricing, and service excellence as it continues to work with customers to co-create value responsibly.

admin by — March 30, 2024 in Oil&Gas 0