Oil & Gas
WOLE Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), has called for the privatisation of Nigeria’s oil and gas pipelines.
He described it as a “commonwealth solution” to ensure the efficiency and sustainability of the nation’s critical oil and gas industry.
Ogunsanya said this in a statement on Saturday after the just concluded Nigeria International Pipeline and Security Conference (NIPITECS) held in Abuja.
He explained that the “commonwealth solution” offers an opportunity for private investors to hold 51 per cent ownership of the nation’s pipelines.
Ogunsanya said oil producers, including NNPC Ltd. and the Independent Petroleum Producers Group (IPPG) would then serve as shareholders.
He said that this model has been successful in the case of the Nigeria Liquefied Natural Gas (NLNG) project, which remains a pillar of the industry.
He pointed out that there was room for further improvement, including the establishment of more LNG facilities and an increase in gas feedstock production.
“Globally, the life expectancy of populations is greatly impacted by energy security, which ensures the availability of healthcare, infrastructure, affordable food, housing, and education,.
“With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it highlights a critical lack of energy security, and by extension, a deficiency in essential services for the majority of Nigerians,” Ogunsanya said.
He emphasised that oil and gas remains the catalyst for Nigeria’s economic growth, urging more capacity building across the value chain; exploration, production, refining, transportation and downstream.
Ogunsanya said that developing in-country capacity will position Nigeria as one of the top 20 economies in the world.
He decried the lack of effective use of proceeds from crude oil sales over the years to develop the country.
He, however, commended indigenous companies, particularly those in professional associations, for driving local content, building capacity and creating jobs.
“These efforts have a multiplier effect, benefiting both the oil and gas value chain and the regional economy.”
Ogunsanya also recognised the importance of the Petroleum Pipeline and Storage Company (PLAN), which plays a crucial role in transporting oil and gas to refineries, gas plants, and power stations.
During a panel discussion on the topic “Pipeline System for Nigeria’s Decade of Gas: Challenges and Opportunities”, Ogunsanya emphasised the need for Nigeria to utilise all available energy sources to close the energy gap.
He acknowledged the growing use of solar energy across the country, urging stakeholders to invest in local solar technology rather than rely on imports.
While noting that the demand for oil and gas may not grow at the same rate as in the past, he reaffirmed that these resources remain essential for the development of emerging economies.
Ogunsanya pledged PETAN’s continued support for advocacy efforts on the critical role of pipelines in the oil and gas sector.(NAN)
A.I
Nov. 30, 2024
Tags: Mr Wole Ogunsanya
