Ministry develops framework for concession of oil, gas pipeline assets

The Ministry of Petroleum Resources said it has developed a framework for the concession of oil and gas pipeline assets.

The Permanent Secretary, Ministry of Petroleum Resources, Amb. Gabriel Aduda, disclosed this at a workshop in Abuja.

Mrs Enefaa Bob-Manuel, Director (Information) of the ministry, in a statement on Thursday, said the Permanent Secretary was represented by the Director, Midstream, Ministry of Petroleum Resources, Mr Felix Okeke.

According to Aduda, the role of pipeline in fluid transport could not be overemphasised.

He also added that the government’s desire was to allow private sector participation in the pipeline segment of the petroleum industry.

Aduda craved for partnership to bridge the infrastructural gap in the segment, especially as the country has adopted gas as her transition fuel and its centrality as a source of energy

Nigeria had two crude delivery pipeline networks to the refineries which included; the Escravos-Warri-Kaduna Pipeline system and the Bonny-Port Harcourt pipeline system, all originating from crude export terminals.

The 5,120 Kilometres of Pipeline Network was also built for the distribution of petroleum products from the four refineries.

With a capacity of 445, 000 barrels of crude per day to storage depots across the country, and about 3, 000 kilometres of gas pipeline network, he said.

Over the years, the permanent secretary said the ownership of pipeline assets in the Nigerian Oil and Gas industry had been the exclusive preserve of government.

He noted that the project was conceived with the intention to bring private investors to operate pipeline assets.

He said it was the desire of the ministry to develop a framework for easy and efficient concession of oil and gas pipelines.

According to Aduda, this will enable private companies to design, construct and operate pipeline infrastructure.

Mr Joe Nwakwue, Partner, Zera Advisory and Consulting, in a remark, said that the quality of service depended on the cost and reliability of the product, hence delivery of the product was of essence to national growth and development.

He also underscored the need for the ministry to rewrite the existing Master plan and to own it as it would facilitate the attainment of the Ministry’s mandate of ensuring an enabling environment for investors.

Furthermore, he advised the government to consider upgrading the pipeline Master Plan.

The pipeline Master Plan was developed by the Nigerian National Petroleum Company Limited (NNPCL) twenty years ago.

Nwakwue said that concessions could enable competition for the market (as opposed to competition in the market).

Mrs Olamide Adewale, the Assistant Director, Midstream Department, in her remarks sued for cooperation in making the Pipeline concession a success.