The federal government through the Ministry of Petroleum Resources has developed a framework on the concession of oil and gas pipeline assets nationwide.
Permanent Secretary, Ministry of Petroleum Resources, Gabriel Aduda who disclosed this at a workshop in Abuja, said that the move underlined the critical importance that pipelines play in the transportation of liquids in the oil and gas industry.
According to a statement from the Director of Information at the Ministry, Enefaa Bob-Manuel, the Permanent Secretary was represented at the workshop by the Director, Midstream, Ministry of Petroleum Resources, Felix Okeke,.
He informed that Nigeria has two crude delivery pipeline networks to the refineries, which include: The Escravos-Warri-Kaduna Pipeline system and the Bonny-Port Harcourt pipeline system, originating from crude export terminals.
“The 5,120 kilometres of pipeline network were 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.
In his own remarks, the Director Midstream, Ministry of Petroleum Resources, explained that over the years, ownership of pipeline assets in the Nigerian oil and gas industry had been the exclusive preserve of government.
The project, he noted was conceived with the intention to bring private investors to operate pipeline assets as it is the desire of the ministry to develop a framework for easy and efficient concession of oil and gas pipelines, which will enable private companies to design, construct and operate pipeline infrastructure.
Partner, Zera Advisory and Consulting and a resource person at the event, Mr. Joe Nwakwue, stated 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.
Also, the Assistant Director, Midstream Department, Mrs. Olamide Adewale in her remarks called for cooperation in making the pipeline concession plan a success
SOURCE: THISDAY
