Page 16 - DMEA Week 07 2022

DMEA NEWS IN BRIEF DMEA

POLICY have been warned against continuing their edition of the Economic Communities of
operations, with the National Petroleum West African States (ECOWAS) Mining and
Buhari instructs Senate to Authority (NPA) saying they may face Petroleum Forum (ECOMOF) in Niamey on
February 16, 2022. Signed by H.E. Mahamane
penalties under Ghanaian law, according to
fund gasoline subsidy the Ghanaian Times. Sani Mahamadou, Minister of Petroleum,
The trade falling under scrutiny is reported
Energy and Renewable Energies for the
Nigerian President Muhammadu Buhari has to be widespread in rural communities across Republic of Niger, H.E.Mohamed Arkab,
instructed the Senate, the upper chamber of the country. However, NPA officials have Minister of Energy and Mines, Algeria,
the National Assembly, to allocate NGN2.557 described it as a recipe for disaster, the report and H.E. Chief Timipre Sylva, Minister of
trillion ($6.15bn) in funding for the gasoline noted. State for Petroleum Resources of Nigeria,
subsidy in the second half of 2022. Dr. Mustapha Abdul-Hamid, the CEO the agreement will see the development
The federal government had previously of NPA, expressed similar concerns while resumption of the multi-billion-dollar Trans-
planned to eliminate the subsidy as of the speaking to reporters in Sunyani on February Saharan Gas Pipeline project.
end of June but is now planning to keep the 11. During a working visit to the Bono region With a length of 4,128 kilometers, the gas
current pricing policy in place indefinitely. to familiarise himself with local conditions in pipeline will link Warri in Nigeria to Hassi
However, the 2022 budget does not reflect the downstream sector, Abdul-Hamid stressed R’Mel in Algeria, passing through Niger.
this about-face, and Finance Minister that illegal stations could not guarantee that Upon completion, the pipeline will carry
Zainab Ahmed has said that Abuja has only the fuel they were selling was safe or free from 30 billion cubic meters of natural gas yearly
NGN443bn ($1.07bn) worth of budget funds possible contamination. from Nigeria, Algeria and Niger to European
available to cover the cost of the subsidy He urged the general public not to markets via Algeria’s strategic Mediterranean
programme between July and December. patronise such sellers, pointing out that fuel cost, as well as supply inland stations along its
As such, Buhari has directed the Senate from “table-top” stations was more likely to route. The pipeline will enable Europe to tap
to amend the budget and make additional cause damage to vehicles. directly into the three country’s significant
funding available. He issued those instructions Additionally, he said that his agency had natural gas reserves, thus diversifying its
in a letter that was read to members of the made significant progress in improving and supply in the wake of the current energy crisis,
upper chamber on February 15. strengthening Ghana’s regulatory regime and while creating critical sources of revenue for
The sum specified by the president, in legal framework to ensure that the fuel sector African gas markets.
combination with the money mentioned by meets global standards. “This project will be transformational for
Ahmed, will bring the total amount of budget The NPA chief also called on local all the countries involved and we in Nigeria
funds available for the subsidy up to NGN3 administrative assemblies to collaborate with are committed wholly to making it a success.
trillion ($7.21bn) in the second half of 2022. the relevant state agencies to ensure proper It will bring jobs and much needed revenue
This is equivalent to the sum of NGN3 trillion setup of fuel filling stations in hazard-free from gas monetization” stated H.E. Chief
that Nigerian National Petroleum Corp. environments, the report indicated. Timipre Sylva.
(NNPC) has requested for this purpose. NEWSBASE Much of the estimated $13 billion pipeline
NEWSBASE cost will be spent in Niger, acting as a much-
needed boost for the already growing energy
PIPELINES sector and wider economy. More importantly,
FUELS the pipeline will also enable Niger to monetize
its own huge gas reserves, estimated at
NPA head cautions against Regional ministers sign the 34 billion cubic meters with recoverable
Declaration of Niamey
reserves of 24 billion cubic meters. H.E.
‘table-top’ fuel stations Niger, Algeria and Nigeria have signed the Minister Mahamadou’s plans include the use
of domestic gas to develop a petrochemical
Operators of “table-top” filling stations ‘Declaration of Niamey’ during the third industry, with the production of by products

P16 www. NEWSBASE .com Week 07 17•February•2022