...creating global opportunities SPECIAL EDITION
Spotlight on Germany and Nigeria Relations
NIGERIA MINING: 'Making an investment in Nigeria mining is paying off as the sector now have a well cordinated approach' - Uyi Akpata, PwC
NIGERIAN CONTENT PROJECT: Key dynamics revolutionising Nigerian local content took center stage at Total’s Egina FPSO project
OGR MEDIA TOUR IN EKET: Discover ExxonMobil’s World Class Training Centre in Eket, Akwa Ibom State
Oil and Gas Republic Media Coverage
Editorial Contents: Nigeria International Petroleum Summit (NIPS) - Page 8 EDITORIAL BOARD PUBLISHER & EDITOR-INCHEIF: Samuel Obineme EDITOR: Owoyimika Tobi Timothy
Nigeria Solid Minerals Sector - Page 11 Local Content - Page 13 ExxonMobil Site Visit - Page 16
SENIOR NEWS WRITER: Obineme Ndubuisi Micheal
Photo Gallery - Page 17 CORRESPONDENTS: Jackson Olagbaju Genevieve Aningo Chima Ojiaku
CONTRIBUTING AUTHORS: Ambrose Nnaji Ayobami Adedinni Binutiri Samson
Lead Nigerian Content Project (Total Egina FPSO) - Page 19 Power Update - Page 23 Top Story - Page 27 Exclusive Interview - Page 29
ABOUT US: Oil and Gas Republic is an international media and publication company covering the entire value chain of the Renewable Energy, Power & Electricity, Mining, Oil & Gas Industry. We also have a dedicated platform for spotlight publication for companies and over 50,000 Industry professionals including NOCs & IOCs, stakeholders, companies from all over the world are subscribed to our publications.
Corporate Profile - Page 31 Spotlight on Germany's Renewable Energy - Page 35 Alternative Energy - Page 41 LNG World - Page 43 Industry News - Page 44
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Event Calendar 2018 3 PDAC International Convention, Trade Show & Investors Exchange 2018 - Canada 3 West African International Petroleum Exhibition and Conference (WAIPEC) 2018 - Nigeria 3 Nigeria International Petroleum Summit (NIPS) 2018 - Nigeria 3 Nigeria Oil & Gas Exhibition and Conference (NOG) 2018 - Nigeria 3 Global Petroleum Show 2018 - Canada 3 Offshore Northern Seas (ONS 2018) 3 Gastech Exhibition and Conference 2018 - Spain 3 8th Scada World Summit 2018 - London 3 8th Dredging & Land Reclamation Summit 2018 - London 3 ConMin West Africa 2018 - Nigeria
Nigeria International Petroleum Summit (NIPS) - the nation's premier oil and gas event highlight Nigeria’s long history of oil and gas production, substantial reserves and status as a leading global player in the sector. NIPS is a truly Africa’s largest trade show and will be attended by key Nigerian political decision makers, government officials and industry’s specialists from the National Oil Company(NOC) and other relevant government bodies on the one part and Chief Executive Officers (CEOs) of National and international oil companies, multinationals and multilateral organizations, the academia and other relevant stakeholders et cetera. Nigeria's petroleum industry is the largest in Africa with proven Oil and Gas reserves of 37 billion barrels (bbl) and 192 trillion cubic feet respectively. The sector contributes about 10% to the country's Gross Domestic Product and accounts for 95% of all exports. Given that Nigeria's Gas reserves have remained largely untapped, the country is expected to make a shift towards becoming a major producer and exporter of Gas which the summit provide with an excellent business environment to interact, cross-pollinate ideas and to make deals happen. With on-going reforms in the sector and improved engagement with host communities, Nigeria is positioning herself to be the foremost oil and gas investment destination. The official Nigeria International Petroleum Summit will therefore create the perfect platform for the world to meet Nigeria's Oil and Gas industry players. Conference Topics: ? The current administration's seven (7) big wins programme for the Nigerian petroleum sector ? Legal and Regulatory Updates: Incentives for investment in the Nigeria Oil and Gas Industry ? Nigeria as an emerging Gas player: Prospects and opportunities ? The New America: How current and future policy shifts could potentially impact global petroleum
Taking place from 19th to 23rd February 2018 at International Conference Centre in Abuja, Nigeria International Petroleum Summit (NIPS), the first Federal Government official oil and gas industry trade show event will undoubtedly be Africa’s largest and most important industry platform and linkage to the world where engineering and technological breakthroughs, bid rounds, bid sign-off, major contract signing and sites conferences would meet other developmental and economic diversification initiatives of the country. The Vice President of Nigeria, Prof. Yemi Osinbajo, unveiled the official launch of the event in the presence of 19 African Ministers of Petroleum and delegates who attended the African Petroleum Producers Organisation (APPO) meeting in Abuja, Nigeria recently. The event will be held annually as a platform to
markets ? Growth outlook and staying competitive after a global downturn. What lessons have we learnt? ? Improving operational excellence in the Nigeria Oil and Gas Sector. ? Enhancing collaborations for a better Industry and how Nigeria can remain attractive to foreign investment while improving success rates of indigenous business engagement ? Local Content and Environmental Issues: Nigeria's response ? Opportunities in Nigeria's Medium and Downstream sectors ? Opportunities in Nigeria's upstream sector ? Maximising Nigeria's Oil and Gas Potentials - Learning from the past, preparing for the future. NIPS is an international exhibition of economic operators, national and international companies and potential investors coming together to present new technologies and know-how in the petroleum sector.
NIPS 2018
Nigeria's official oil & gas event launched, world’s energy giants to convene at NIPS 2018
Nigeria’s strong capabilities in the oil and gas sector and the investment opportunities available will be highlighted at the Nigeria International Petroleum Summit (NIPS) in Abuja from 19th to 23rd February 2018. This First Federal Government of Nigeria’s official oil and gas industry trade show event will undoubtedly be Africa’s largest and most important industry platform and linkage to the world where engineering and technological breakthroughs, bid rounds, bid sign-off, major contract signing and sites conferences would meet other developmental and economic diversification initiatives of the country. The Vice President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo, unveiled the official launch of Nigeria International Petroleum Summit 2018 in the presence of 19 African Ministers of Petroleum and delegates who attended the African Petroleum Producers Organisation (APPO) meeting in Abuja, Nigeria recently.
Dr. Ibe Kachikwu the Nigeria Minister of State for Petroleum Resources said, the Nigeria International Petroleum Summit (NIPS) will be held annually as a platform to highlight Nigeria’s long history of oil and gas production, substantial reserves and status as a leading global player in the sector. This will be reinforced through the attendance of key Nigerian political decision makers, government officials and industry’s specialists from the National Oil Company(NOC) and other relevant government bodies on the one part and Chief Executive Officers (CEOs) of National and international oil companies, multinationals and multilateral organizations, the academia and other relevant stakeholders et cetera.
country's Gross Domestic Product and accounts for 95% of all exports. Given that Nigeria's Gas reserves have remained largely untapped, the country is expected to make a shift towards becoming a major producer and exporter of Gas which the summit provide with an excellent business environment to interact, cross-pollinate ideas and to make deals happen. ‘We are excited about the potential possibilities of hosting for five days at the International Conference Centre (ICC), located in the heart of Abuja's business district, Africa largest oil and gas international exhibition of economic operators, national and international companies and potential investors coming together to present new technologies and know-how in the petroleum sector in Nigeria’, Dr. Kachikwu said.
Nigeria's petroleum industry is the largest in Africa with proven Oil and Gas reserves of 37 billion barrels (bbl) and 192 trillion cubic feet respectively. The sector contributes about 10% to the
NIPS 2018 to address Nigeria’s gas hub potentials The Nigerian International Petroleum Summit is set to address the nation’s potential of becoming the next gas hub. The event which takes place in Nigeria from 19th – 23rd February 2018 is set to explore Nigeria’s aspirations to build an energy hub for gas cooperation with international partners along the value chain. It seeks to bring together government officials, public and private sector, gas developers, institutional investors and technology providers to explore how natural gas can play a greater role in Nigeria’s energy mix and support the industrial and economic development goals of the country. The Project Director of NIPS 2018, James Shindi, said that the event would be an avenue for leading Exploration and Production (E&P) service companies to showcase new onshore and offshore technologies.
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He said, “NIPS will present current best practices and new innovations that will shapen the engineers, scientists, academia, managers, and executives. Companies from Africa, Europe, Asia, and America will be present to exhibit and demonstrate innovations in technologies in oil production, and transportation of energy resources, provision of oil and gas storage systems, services, existing and future oil and gas projects in the continent among others” “Given that Nigeria’s Gas reserves have remained largely untapped, the country is expected to make a shift towards becoming a major producer and exporter of Gas which the event provides an excellent business environment to interact, crosspollinate ideas and to make deals happen,” Shindi added. The conversation in February is also not squarely about Nigeria, but its relationship with international partners and Nigeria’s
ability to develop gas based projects to electrify and develop the economy. The next opportunity NIPS will showcase gas opportunities and projects, strategies, bringing together decision makers who can lay the cornerstone of gas prospects and enable Nigeria to become an international energy hub to support industrial development across the region. The event will also focus on Nigeria’s gas outlook, case studies on modelling a gas economy and how to accelerate gas infrastructure. The summit is organized by Messrs Brevity Anderson Consortium. The event organizer has invited private sector players to attend and make the most of the opportunity to access and do business with the key industry stakeholders in Nigeria and the African region.
page 8
NIPS 2018
African Energy Ministers, Private Sector Players Meets at NIPS to Discuss Key Oil and Gas Projects Africa ministers in charge of petroleum and energy, chief executives and senior level directors of major oil, gas and indigenous companies will meet in Abuja at the Nigeria International Petroleum Summit (NIPS), to discuss key oil and gas projects in the African continent. Honorable Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said the summit will present new technological breakthroughs, bid rounds, bid sign-off, major contract signing with other developmental and economic diversification initiatives. Nigeria International Petroleum Summit (NIPS) will showcase the major industry opportunities available to investors, indigenous and international oil companies, as well as the practical steps to be taken to maximize the prospects – both in the short and long term. NIPS will also provide an insight into Nigeria’s Gas reserves which have remained largely untapped, the country is expected to make a shift towards becoming a major producer and exporter of Gas which the summit provides an excellent business environment to interact, cross-pollinate ideas and to make deals happen, regulation surrounding natural gas contracts and how new legislation will unlock potential opportunities in the industry. 2018 highlighted speakers include: H.E Muhammadu Buhari, President, Federal Republic of
Nigeria H.E. Professor Yemi Osinbajo, Vice President, Federal Republic of Nigeria Dr. Emmanuel Ibe Kachikwu, Honourable Minister of State, Petroleum Resources, Federal Republic of Nigeria Maikanti Baru, Group Managing Director, Nigerian National Petroleum Corporation Modecia Ladan, Director, Department of Petroleum Resources, Nigeria Engr. Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board Bello Aliyu Gusau, Executive Secretary, Petroleum Technology Development Fund Ahmed Bobboi, Executive Secretary, Petroleum Equalisation Fund
Official opening of the summit will done by His Excellency, H.E. Muhammadu Buhari, President of the Federal Republic of Nigeria, who will welcome other high level delegates and will deliver a keynote address. The summit is organized by Messrs Brevity Anderson Consortium. The event organizer has invited private sector players to attend and make the most of the opportunity to access and do business with the key industry stakeholders in Nigeria and the African region. NIPS 2018 have gotten enormous media support from local content and international media orgaization. Oil and Gas
Republic Publication (OGR) is a 'Gold Media Partner' at Nigeria International Petroleum Summit. OGR is an international media and publication company covering the entire value chain of the Renewable Energy, Power & Electricity, Mining, Oil & Gas Industry. Over 50,000 Industry professionals including companies subscribed to our publications and receive our news updates. Our publications features latest industry news, jobs, articles & market report, interviews, events, training programs, sharing of market information, buy for me services, sell for us services, public – private partnership {PPP} for the benefit of both local and international clients.
Lagos and other oil bearing states to feature at Nigeria International Petroleum Summit 2018 According to Oriental News, Lagos State, and other oil bearing states will feature at the Nigeria International Petroleum Summit (NIPS) 2018, an Africa Petroleum Technology and Business Conference(APTC) which will be hosted under the auspices of the Federal Government of Nigeria from 19th to 23rd February 2018 at the International Conference Centre (ICC), Abuja. The Vice President of the Federal Republic of Nigeria, Professor Yemi Osinbajo, launched event officially in the presence of 19 African Ministers of Petroleum and delegates who attended the African Petroleum Producers Organisation (APPO) meeting in Abuja. Brevity Anderson Consortium was appointed to organize the event.
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The participation of Lagos state and other Nigeria oil bearing states in the exhibition’s testifies to its high status. The Federal Ministry of Petroleum Resources and the State Oil Company of Nigeria (NNPC) have shown invaluable support for the petroleum technology and business Summit 2018 as companies from Africa, Europe, Asia and America etc. will take part in the exhibition to demonstrate innovative technologies in oil production and transportation of energy resources, provision of oil and gas storage systems, services, existing and future oil and gas projects in the continent, and much more.
The event’s status is consolidated by its line-up of sponsors which include the international, independent , marginal oil fields companies; service companies; financial services and insurance; construction and engineering firms among others. Nigeria’s petroleum industry is the largest in Africa with proven Oil and Gas reserves of 37 billion barrels (bbl) and 192 trillion cubic feet respectively. The sector contributes about 10% to the country’s Gross Domestic Product and accounts for 95% of all exports.
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The National Mining Summit
15 - 17 MAY 2018
International Conference Centre, Abuja, Nigeria
UNEARTHING NIGERIA’S MINING SECTOR FEDERAL REPUBLIC OF NIGERIA MINISTRY OF SOLID MINERALS DEVELOPMENT
NIGERIA MINING
VIEWPOINT Uyi Akpata, Senior Partner for PwC Nigeria and Regional Senior Partner for the West Market Area
PwC is a major player in the Nigerian solid mineral sector
'Making an investment in Nigeria mining is paying off as the sector now have a well cordinated approach' - Uyi Akpata, PwC By Obineme Ndubuisi Micheal Uyi Akpata is Country Senior Partner for PwC Nigeria and Regional Senior Partner for the West Market Area. He is also PwC’s Africa Oil and Gas leader with over fifteen years experience in the Energy and Utilities industries. He has led various engagement teams serving large multinationals including ExxonMobil, Chevron and ENI and of integrated and emerging regional Oil & Gas companies, such as Oando and Sahara Group. He has served in numerous leadership positions within the Nigeria Firm including being Head of Energy Utilities and Mining Services for Nigeria and a member of the Global Oil & Gas leadership team. In this article, Uyi shared insights on current developments and how PwC is shaping the future of mining business in Nigeria. For the past five years, making an invesment in the Nigerian Mining Sector is paying off as the sector now have a well cordinated approach, well established foundation under the current administration which have positioned the mining sector in the right direction for the growth and development of Nigeria's economy. The mining policies have been put in place and people are begining to see that there is a sustained development in the Nigerian mining sector. More interesting, seven particular minerals have been identified and the Nigerian government is focused on exploring the minerals for the growth and development of the economy. A reputable mining journal says Nigeria is a very attractive investment destination for mining and it is because of the frameworks that has been put in place. PwC is a major player in the Nigerian solid mineral sector in a way of contributing to the development of the economy and to build trust in the society that will resolve complex problems. As we all know developing the sector has been a complex problem for many years. In the past years, we invested in top leadership, engaging with PWC network organizations in Australia, Canada, South Africa, Ghana, using them as case studies and bringing best practices to integrate into Nigerian mining sector.
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PwC has developed quite a number of top leadership engagement by bringing local knowledge with international experience which was shared with the Honourable Minister of Mines and Steel Development, Dr. Kayode Fayemi, when he came on board about two years ago. The minister picked our recommendations as it was instrumental in building the foundation and understanding the mining sector. Shortly after, the minister attended the Africa Mining Indaba in South Africa where we hosted a forum for government officials. Ultimately, it hasn't been the same since then and we are glad to be part of it. Two years ago, when i took over the leadership as the Country Senior Partners of PwC, there are lot of things that was done such as quick wins in the oil and gas industry, work for already established clients and meet the revenue numbers but it isn't the overall mandate. One of the terms they give us as Country Senior Partners is how well do you influence a society and make a difference. In this note, we decided to make an investment in the mining sector because it is like a debt which you might not know when it will end but if you are really influencing the sector as we have done, you will be glad when things begins to happen. The most instrumental part of our work, we enage directly with the Honourable Minister and his team. During our meetings with the minister, we were able to identify the challenges of which some are still existing now such as the ownership between the Federal and State government in terms of title or ownership of lands and the mineral rights. Waiting for consitutional reforms will not solve the problem, but if it is clearly stated that each stakeholder will benefit then you can have a commonality between stakeholders in the sector as it will be in the best interest of everyone whether the communities, state government in terms of revenue, federal government in terms of attracting overall investment. PwC was part of the committee members and contributor in articulating the Roadmap for the Growth and Development of the Nigerian Mining Industry. We make sure that we implemented the best practices for the sector, it was very instrumental. We presented an independent view to be sure that all stakeholders are carried along. Once we identify any challenges, we make notes and our next step is investing on what we think that will bring solution.
Mining isn't a miracle like agriculture but if you don't set a good foundation and structures, there will not be any development in the sector. With the new roadmap of the Nigerian Solid Mineral Sector, it will begin to materialize within some years from now. Another challenge is the issue of illegal miners in the sector and it is the fastest way of bringing the young people out of employment. There should be an arrangement and structures that will cover the illegal miners so that when the big industry players come fully into the sector, there should be an avenue of accomodating the illegal miners. Furthermore, the illegal miners should be informed through various engagement and giving them the opportunity to do the mining business under a more robust and sustainable condition. It is a way of including them under the platform of the large companies but isn't going to be different from the arrangements we have in the agric sector where you have clusters of small farmers teaming up with large farmers in terms of their supply chain. For instance, if the miner is earning twenty thousand naira monthly under hazardous condition, but, in a more structure manner, they will even earn more when working under a robust and sustainable condition. The 'Ease of Doing Business' led by the Vice President of Nigeria, Professor Yemi Osibanjo have contributed to the mining sector. People are begining to see the benefits and impact on the 'Ease of Doing Business' in Nigeria whether is the mining sector, agric sector, telecom sector etc.. A lot of transformation have been going-on in the mining sector within the last two years and international agency such as World Bank and other investment groups are coming together to invest in the solid mineral sector of Nigeria. Though, there are more things to be done, it is a marathon and we will just be seeing easy learning steps. We have gone a long way from where we are two years ago.
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NIGERIA MINING
Nigeria to host ConMin West Africa 2018, construction and mining industry’s biggest event
After the success of ConMin West Africa 2017, the international trade fair for construction machinery, mining and building material machines is returning: the second ConMin West Africa will take place in the Nigerian capital city of Abuja between 15 and 17 May 2018. The German service provider for international exhibitions IMAG, together with its Nigerian partner Afrocet Montgomery is offering companies the opportunity to showcase their product portfolio in Nigeria’s rapidly developing market. The trade fair’s inaugural edition in June 2017 and the colocated National Mining Summit attracted over 1,500 professional visitors and 44 exhibitors from 11 countries, which included industry giants such as Bosch, Case, Dangote, Elkon and thyssenkrupp Industrial Solutions. The acting President of Nigeria was present to open the event itself, as were high-ranking representatives from the Nigerian government. ConMin West Africa will see foremost suppliers, manufacturers and solution providers showcase an array of products from the construction, building materials and mining sectors. The show's organisers have unveiled a new Pavilion for 2018 entirely dedicated to Sustainability; companies will showcase their products for water treatment plants, pipeline construction as well as waste systems. As last year, the conference will be accompanied by a business forum with technical sessions to which exhibitors will be able to make contributions.
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The 2018 National Mining Summit will once more take place alongside ConMin West Africa. This two-day conference will see industry experts share their views about the latest developments, opportunities and challenges in the sector. As the current largest economy in Africa, with a gross domestic product of USD 518 billion, and the biggest producer of crude oil on the continent, Nigeria is an ideal host country for ConMin West Africa 2018. Since the collapse of oil prices, Nigeria has introduced certain initiatives and reforms to help diversify the economy, the mining industry in particular has prioritised making use of the country’s other natural resources such as natural gas and coal. As such, Nigeria has plans to invest USD 7 billion over the next ten years to increase the share of the mining sector from 0.3 percent of GDP (2015) to 7 percent. The construction industry will also benefit from a number of large-scale projects planned, one of which is to build two entirely new cities close to Abuja and Lagos; Centenary City and Eko Atlantic City. Improvements to infrastructure have also been given approval in addition to the construction of a large oil refinery in order to be able to process the oil extracted domestically and to no longer be reliant on imported oil. “Nigeria is one of the most promising markets in the world and is becoming more and more important to the global economy”, says Peter Bergleiter, Managing Director IMAG GmbH, the subsidiary of Messe München which organises trade fairs outside of Germany. “We enable businesses to establish a
foothold in the market at an early stage and obtain high quality contacts. The combination of a trade fair and co-located specialised conference attended by top professionals from the industry is very well received, as the overwhelmingly positive feedback from this year's participants has proven.” With a combined 145 years of experience, Afrocet Montgomery is a joint venture business which specialises in running high-end exhibitions and events in West Africa. Its extensive knowledge and experience of the African market has enabled the company to develop a strong portfolio of shows which cover a wide range of sectors including the building and mining industries. As well as organising South Africa’s biggest building show, Interbuild, Afrocet Montgomery also runs Electra Mining Africa which is one of the world’s largest mining and power exhibitions based in Johannesburg. IMAG, a subsidiary of the Messe München GmbH, organises trade fairs around the world and supports participants in international events outside Germany on behalf of public and private clients. Since its foundation in 1946 in Munich, IMAG has been involved in over 5,000 international exhibitions abroad. IMAG’s annual portfolio encompasses approximately 30 trade fairs, spanning around 20 countries. The events focus in particular on the following sectors: automotive, commercial vehicles and auto parts industry / construction machinery, building material and mining / machine tools and further industries / environmental technology and analysis. In Africa, IMAG is engaged in construction fairs in Algeria, Nigeria and South Africa.
page 12
LOCAL CONTENT
Nigerian engineer, Monday Eyoh unveils new 3D printer, produced from waste materials Wisdom Monday Eyoh is a graduate of Mechanical Engineering from University of Uyo. He specializes on mechatronics and r obotics with an extentive knowledge of building several machines used for industries. Eyoh also have a talented and skilled teams in University of Uyo working alongside in building machines.
By Obineme Ndubuisi Micheal
Wisdom Eyoh speaking on an exclusive interview with Obineme Ndubuisi Micheal, Oil and Gas Republic's Correspondent. Eyoh said the 3D printer is an interesting innovation that creates physical prototypes from computer aided designs. The machine has been showcased at industry events and have gained a lot of recognition. But it started as a personal project, but,in the process a whole lot of people came to join the team. Right now, it is now a school project and it is designed at the University of Uyo with the aim of promoting local content development in Nigeria. He said the project is part of a 'Waste to Wealth Project' initiated by the University of Uyo with the objective to turn waste materials in the environment into functional things that will be useful in industries. The machine have a long life span of five years but with proper maitenance it can last up to 15 years.
He also explained that the 3D printer was designed as a self replicating machine in the sense that, if any of the part breaks, there is no need for panicking because it will print its own part. He adds: "We are trying to expand the machine's capabilities in order to print other things such as metals, concretes, cake as it currently prints plastics only. We are in discussion to partner with a company as we want to produce a 3D printer that will be big enough so that in the next 10 years to build a house will be much easier. You just have to design the house on your computer and send it to the 3D printer for printing." He stressed that the team is working on modifying a 3D printer that will be used to print cake decorations which will eliminate the manual labor involved in creating prototype products. Eyoh and his team have also built another machine, designed a scanner used for a particular operation. The scanner scans a partcular object. The machine can scan the face of a person after
which you will be able to print through the 3D printer. As part of the machine's advantage, it by passes the process of designing the object on a computer. Eyoh said the machine can be used in major industries such as metal work and oil and gas industry. He said most times when designs are done, you need prototypes and the machine can help you get a physical prototype that is complex in the design. The machine can also be used to producing specialized spare parts. He said the group is actually looking for funding to create a bigger, better and more improved operation of the machine. He adds: "All we have lacked all this time is a platform and funding to be able to showcase our work to the world that it can be done here in Nigeria"
According to him, it is difficult to get a locally made 3D printer in Nigeria as the main challenge is getting the parts of the machine. He adds: "We did a lot of research in building the machine so that it can be used to get parts for other machines. With the 3D printer, all you need to do is design the prototype on your computer and once you design it, send it to the system and the machine prints the parts out physical" "During the cause of the project, we built series of machines and the 3D printer is part of the machines we produced. We also built a machine that takes the waste bin as it is and converts it into useful materials which the 3D printer can use to create physical objects. We pay waste collectors and tell them the type of waste materials we need because there are some plastics that are easier to recyle so we tell them the type of plastics we need and they bring it to us, we sort them and convert it accordingly," Eyoh said.
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page 13
LOCAL CONTENT
NCDMB announces $200 miilion investment to support local content in Nigeria
The Nigerian Content Development and Monitoring Board (NCDMB) has allocated the total sum of $200m (N61.18bn at the official exchange rate of N305.9 to a dollar) for local content development in Nigeria. The funds was released to the Bank of Industry as intervention fund for indigenous oil and gas service providers. The Executive Secretary, NCDMB, Engr. Simbi Wabote, made this known during the 2017 edition of the Practical Nigeria Content in Uyo, Akwa Ibom State. The Executive Secretary, NCDMB, Simbi Wabote, said the agency would ensure that about eight indigenous oil and gas service providers access the fund every six months to boost job creation in the sector.
contributors to the Nigerian Content Development Fund. It may interest you to know that we have released the $200m intervention fund to the Bank of Industry for adequate disbursement. “The intervention fund has all-in single digit interest rate of eight per cent for loans extended to Nigerian oil and gas service providers and all-in single digit interest rate of five per cent for loans extended to community contractors. We will also ensure that the NCIF becomes fully operational and provide statistics of service providers and community contractors who have benefited.”
He said that third party outfits were being engaged to monitor compliance with respect to local content implementation in the upstream, midstream and downstream arms of the oil and gas industry.
On compliance and enforcement of local content in the oil sector, Wabote explained that the third party firms that were being put in place would sharpen intervention monitoring and raise the alarm when necessary. “We will put in place third-party outfits to enhance compliance monitoring in the upstream, midstream and downstream sectors of the industry, as well as sharpen intervention monitoring based on complaints and whistle-blower alerts,” he said.
He also explained that with the intervention fund, service providers in the sector would have the capacity to employ more hands, a development that would increase the workforce in the sector by creating additional jobs.
He further stated that the NCDMB had expanded its operations to cover the midstream and downstream sector of the oil industry, adding that the agency was part of the NLNG business activities and was engaging Dangote Oil Refinery on local content matters.
Engr. Simbi said, “We visited Dangote refineries where we agreed on steps to involve more Nigerian companies with capacities for patronage by Dangote Oil Refinery in the development of the project to meet cost and schedule timelines. “Similarly, a compendium of ancillary businesses required to sustain operation of the refinery is under development to support the operational phase of the huge 650,000 barrels/day refinery.”
He said, “With respect to the Nigerian Content Intervention Fund, in the last one year, we have launched the $200m intervention fund for our Nigerian oil and gas service providers who are
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page 14
LOCAL CONTENT
PETAN Seeks Government Support, Effective Policy for FPSO Construction in Nigeria PETAN promote, develop, liase with government on matters generally affecting the industry and member companies. It also foster co-operation amongst member companies and advance Petroleum Technology in Nigeria. PETAN is also involved in advocacy, training programs, workshops and faciliates trade exhibitions such as: WAIPEC, OTC among others
By Obineme Ndubuisi Micheal PETAN Chairman, Bank Anthony Okoroafor, has called for Government support and strong political will as key to FPSO construction in Nigeria. Speaking on an exclusive interview with our correspondent, Obineme Ndubuisi Micheal, he said that PETAN will continue speaking-up for Government to rise up and insist FPSO construction must be done in-country and also review Nigeria's infrastructure map to addressing it squarely. He said the most important factor is Government creating an enabling environment through its policies and there will be changes in the industry as it will also lead to job opportunities within the country. He further explained that Nigeria has all chances to become West Africa FPSO Yard because the country have enough quay lengths & capacity, draft, heavy load platform, concrete yard for topsides and hull apportment laydown to handle FPSO construction.
Rigs in Nigeria. And, have Nigerian companies lead on major EPCI jobs. Industry support Petroleum Technology Association of Nigeria (PETAN) is known as a leading organisation that represents oilfield services and technology companies operating across upstream through to downstream projects. PETAN is a leader in the promotion of innovative engineering and creative solutions, that help advance the petroleum industry both nationally and regionally. PETAN was established to bring together Nigerian Oil & Gas entrepreneurs to create a forum for the exchange of ideas with the major operators and policy makers. In 2017, PETAN launched its annual event, West African International Petroleum Exhibition and Conference
(WAIPEC) to addressing the needs of companies seeking to showcase their innovative solutions and new technologies, and to support the development of major new business and partnerships to benefit West Africa's petroleum economy. The event attracts over 200 exhibiting companies, in excess of 25 technical and strategic conference sessions and attract more than 6,000 professional visitors into the exhibition to engage directly with participants. WAIPEC is the only oil and gas event held in partnership with Nigeria's petroleum industry. PETAN have particular expertise and experience in well engineering, drilling and completions, fabrication and construction, EPC, pipelines and facilities such as laying, coating, repair, production operations such as well testing, EPF, O&M, well services such as wireline, slickline, pumping, CT, marine vessels, rov technology and subsea services, seismic acquisition, process and interpretation.
He adds: “If the Nigerian Government can take a bold step by providing the necessary policies, there is no way we cannot insist that FPSO’s, Rigs , Vessels must be built in Nigeria. If we do not put our foot down, the companies will always give several reasons why we cannot. We must insist, then put favorable terms for companies to invest on the right infrastructure needed to achieve it” “After 50 years of oil and gas in Nigeria, it is high time we raise the bar to retain greater value of the revenue in-country. Why? We have great fabrication yards, all modules can be built in country and integrated, all major key players in this market are actually in country, the average man-hours of work could be around 2,000,000 man hours." says Mr. Okoroafor. According to Mr. Okoroafor, PETAN has also been helping Nigeria raise the local content bar very high, have many more indigenous companies having the requisite capacities to build FPSO’s, Vessels,
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MEDIA TOUR
Discover ExxonMobil’s World Class Training Centre in Akwa Ibom State ExxonMobil is achieving industry-leading support throughout Nigeria by maintaining a focus on the fundamentals, selectively investing in Nigerian local content and providing technical training to Nigerian graduates. The company continues to advance its local content portfolio, building upon attractive longer-term opportunities in Nigeria. As part of its continued efforts towards local content development in Nigeria, ExxonMobil organized and hosted a site visit for the Nigerian oil and gas professionals that attended the Practical Nigerian Content 2017 in Uyo, Akwa Ibom State. Oil and Gas Republic Publication was among the accredited media with exclusive right to do an extensive coverage at ExxonMobil’s training centre in Eket, Akwa Ibom State.
candidates has graduated from the program, currently have about 40 students admitted to various discipline. The candidates are trained for about 20 month, 30 percent classroom and 70 percent practical training. There are about nine classrooms fully equipped, five specific classrooms for apprentice programs, workshop centre, three simulation centre for offshore operations. There is also a laboratory classroom used for practical works and assignments. The programs is open to applicants with ordinary National Diploma (ND) from polytechnics, College of Technology. The admission process is very transparent as qualified candidates are usually selected nationwide through screening at ExxonMobil’s centres in Lagos and Uyo.
The program is divided into three phases. The first phase usually last up to 8 months, the second phase comprises various discipline, candidates are divided into four groups which includes the electrical, mechanical, process and instrumentation. While, the third phase is the continuation of the discipline with the final examination added to it. After the completion of the program, ExxonMobil awards each candidate with a certificate of completion, City & Guilds Level 4. ExxonMobil is on track to energize local content and human capacity development in Nigeria. The company is also enhancing resource value through practical training and optimization of technology application in Nigeria.
Over 10 years, ExxonMobil has been providing technical programs to Nigerian graduates looking to explore career opportunities in the oil and gas industry. Recent report shows that 85 percent of the candidates that graduated from the training Centre are fully employed for various oil and gas positions and some candidates have traveled out of Nigeria to explore international job opportunities in Europe, Canada and beyond. ExxonMobil’s Training Centre in Eket maintains a leading position in developing local content capacity in Nigeria's energy industry. The company offers an internationally recognized certification on Mechanical Engineering, Electrical/Electronics Engineering, Petroleum Engineering and Chemical Engineering which covers the technical and technological areas of the energy industry. The training centre is known to be the first of its kind in Nigeria as it also features oil and gas facilities used for various tasks such as offshore operation. According to report, one of the candidates that graduated from the program has been employed in a multinational oil company in Houston as a design engineer. Over 700
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Photo Gallery
Oil and Gas Republic Media Coverage at ExxonMobil’s Training Centre in Eket, Akwa Ibom State
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Photo Gallery
Oil and Gas Republic Media Coverage at ExxonMobil’s Training Centre in Eket, Akwa Ibom State
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LEAD NIGERIAN CONTENT PROJECT
Key dynamics revolutionising Nigerian local content took centerstage at Total’s Egina FPSO By Obineme Ndubuisi Micheal President Goodluck Jonathan, the law mandated the Nigerian Content Development and Monitoring Board (NCDMB) to deepen the participation of Nigerians and Nigerian facilities in the oil and gas industry, by facilitating local capacity development and ensuring that the execution of large components of any project is domiciled in-country. The law empowers NCDMB to maximise local participation in the oil and gas industry as part of the efforts to build local manpower and facilities, curb capital flight and create job opportunities for Nigerians in the industry. NCDMB not only insisted that any future integration of FPSOs must be carried out locally, the agency also directed that a large fabrication scope of FPSO project must be performed in Nigeria. FPSO fabrication and integration yard: The Nigerian Content Act had led to increased indigenous asset ownership, particularly marine vessels, in-country fabrication and manufacturing capabilities, as well as local human capital development. The country had lacked facilities for integration of FPSOs before Total awarded the Egina FPSO contract to SHI.
Total E&P Nigeria Ltd, Managing Director, Mr. Nicolas Terraz, making a presentation on Egina FPSO Project at the Practical Nigerian Content 2017 in Uyo, Akwa Ibom State Nigeria’s oil and gas industry is set to receive another landmark development with in-country fabrication and integration of the Floating Production Storage Offloading (FPSO) facility being built by Samsung Heavy Industries (SHI) of Korea for Nigeria’s Egina deep-water oil field. The Egina FPSO project is being undertaken by Korea-based Samsung Heavy Industries (SHI) for TOTAL Oil Exploration, with LADOL acting as the local content partner. Total began the drilling program on the Egina field in December 2014. This intense project will keep two rigs busy for a total of 3,000 days. Five out of the planned 44 subsea wells have already been drilled, at water depths of between 1,400 m and 1,700 m, and 13 more will be completed when the field comes on stream. The FPSO, operated by Total, is 330 meters in length, 61 meters across and 34 meters high, with a storage capacity of 2.3 million barrels of oil. Located some 130 km off the coast of Nigeria at water depths of more than 1,500 metres, the Egina oil field is one of our most ambitious ultra-deep offshore projects. The capital expenditure (Capex) for the six packages in the oilfield development is $16 billion, out of which $3.3 billion is earmarked for building the FPSO. The Egina FPSO is not the first FPSO to be deployed in Nigeria’s oil and gas industry as the country currently has fourteen FPSOs all built in foreign yards. Out of these fourteen FPSOs, five were built for giant deep offshore oil fields – Shell’s Bonga, ExxonMobil’s Erha, Chevron’s Agbami and Total’s Akpo and Usan fields, all located several kilometres offshore, in water depths ranging from 200 metres to 1.2 kilometre. The uniqueness of the Egina FPSO lies in the fact that apart from being the largest FPSO in Nigeria, it will also be the first FPSO to be fabricated and integrated locally in Nigeria, and across the African continent.
Jean-Michel Guy, Executive General Manager of the Egina project, said that the Egina FPSO is one of the deepest offshore projects ever operated by Total. He adds: "Egina is a flagship project for Total, and it is above all a Nigerian project. At Total, our commitment to our host countries is one of the keys to our success. We have taken up the ambitious challenge of playing a role in sustainable developing the local industrial fabric by bringing together international companies and local contractors. The idea is to accelerate the pace of technology transfer by training Nigerian employees (over 410,000 hours in all). This win-win situation should enable Total and Nigeria to productively pursue a partnership that began more than 50 years ago," Jean-Michel said. The Deputy Managing Director of Total E&P in charge of Deepwater District, Mr. Ahmadu-Kida Musa has also said that Egina was the company’s next deepwater field in development phase after the discovery in 2003 and the signing of the Final Investment Decision (FID) in 2013. Mr. Ahmadu further explained that the company’s target is to produce 200,000 barrels per day of crude oil from the Egina by 2018. He said the development of Egina by Total and the Nigerian National Petroleum Corporation (NNPC) at a critical time when most other companies were not willing to invest was a demonstration of Total’s boldness. According to him, for Total to embark on such $16 billion project when other companies were not willing, showed the company was confident in Nigeria’s operating environment. Mr. Ahmadu had also stated that a lot of the fabrication work for Egina field, which is located two kilometers into the waters, had been completed by Saipem, Nestoil, Nigerdock, Dorman Long and Aveon.
Major driver for fabrication and integration of Egina FPSO:
Managing Director/Chief Executive Officer Total upstream companies in Nigeria, Mr. Nicolas Terraz, said that the Egina FPSO would boost the country’s daily oil production by 200,000 barrels from 2018. The additional barrels would come from the company’s multi-billion dollar Egina Field Development.
Total's Egina FPSO project is under the Nigerian local content regulations, and a portion of the topsides fabrication and integration is to be completed in Nigeria. And, the remaining topside module integration and commissioning will take place in Nigeria for scheduled delivery in the second half of 2018.
"The company is at present along the value chain from upstream to the downstream sector where Total is a leader, with close to 550 service stations across the length and breadth of Nigeria. In the last five years, the Total Group has invested US$10 billion in the Nigerian oil and gas sector. Today, we have expertise and strong positions in the onshore, offshore and deep offshore. The industry was facing a shakeout, as oil price is still low, and the economy is recovering from recession," Mr. Nicolas said
All the FPSOs operating in Nigeria’s oil and gas industry currently were built and integrated in foreign yards, denying Nigeria the huge benefits of growing her Gross Domestic Product (GDP) through incountry domiciliation of the huge expenditure, and local capacity development, as well as job creation.
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In order to carry out the local fabrication and integration of the Egina FPSO as required by Total, and the NCDMB, Samsung Heavy industries surveyed local facilities, but eventually Samsung decided to build a new fabrication and integration yard with $300 million of investment to keep the international standard level of quality and safety, within Tarkwa Bay LADOL Free zone which was virgin land mass. The investment led to the creation of an independent entity, Samsung Yard (SHI-MCI FZE) in LADOL Freezone Tarkwa Bay. The local fabrication and integration of the Egina FPSO will boost technology transfer and the development of indigenous manpower and facilities, as evidenced in the construction of the Samsung Yard and the training of Nigerian technicians, engineers and other professionals by SHI. The yard has already provided 1,200 employment opportunities in the areas of welding, fitting and other support services; while the cascade effect outside the yard will generate huge jobs over the coming years. The Local Fabrication and Integration of the Egina FPSO in Samsung yard has helped Nigerians to build more local capacity in increasingly challenging skills. By executing these jobs locally, the funds that could have left the shores of Nigeria for financing the fabrication in foreign yards are retained in the Nigerian economy. Apart from Nigerians acquiring new skills set in the oil and gas sector, the execution of the project locally also contributed to Nigeria’s GDP. Being the first fabrication and integration facility in Africa, the Samsung Yard (SHI-MCI FZE) will position Nigeria to become the hub of oil and gas business and shipbuilding in the continent as all future FPSOs in the Gulf of Guinea will be fabricated and integrated in Nigeria. During the arrival, the FPSO will be moored at the Totaloperated Egina oil field, located some 130 km off the coast of Nigeria at water depths of more than 1,500 meters. Apart from the FPSO, infrastructure on the field will consist of an oil offloading terminal, and subsea production systems that will include 52 kilometers of oil and water injection flowlines, 12 flexible jumpers, 20 kilometers of gas export pipelines, 80 kilometers of umbilicals, and subsea manifolds. SHI has now completed delivery of three massive offshore projects which are: the Ichthys CPF, the world’s largest floating gas processing facility, delivered in April and Prelude FLNG, the world’s largest FLNG, left Geoje in June and the Total's Egina FPSO which is heading to Nigeria. According to SHI’s report, the giant FPSO has sailed away from its Geoje shipyard on Tuesday, October 31, heading to Nigeria. It will take three months for it to reach Nigeria in the second half of 2018.
But with the signing into law, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act on April 22, 2010 by former
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LEAD NIGERIAN CONTENT PROJECT
Nigeria’s Oil Industry Stakeholders Awaits Egina FPSO, NCDMB Partners with IPPG to Deepen Local Content
Nigerian oil and gas industry stakeholders at 7th Practical Nigerian Content in Uyo, Akwa Ibom State The Nigerian oil and gas industry stakeholders are awaiting the integration of the Egina Floating Production Storage Offloading facility in the country as the project nears completion. Industry stakeholders have described the Egina FPSO as the largest in Nigeria, and the first to be fabricated and integrated locally in Nigeria. The Nigerian Content Development and Monitoring Board (NCDMB) has said that the board will collaborate with ancillary agencies to facilitate the integration of the FPSO units in Nigeria. It would be the first time such integration would happen in the country as six modules of the Total Egina FPSO had been successfully fabricated in the country. The Executive Secretary, NCDMB, Mr. Simbi Wabote, said, “The Nigerian oil and gas industry needs more projects to build capacity and keep existing facilities from wasting. “We are happy with the progress of the project and its contribution to local content and the national economy. The FPSOs have been built abroad in the past and moved straight to site. This is the first time that many Nigerians will see what it looks like.” The leadership of the NCDMB and other agencies such as the Nigerian Maritime Administration and Safety Agency, the Nigerian Ports Authority, the Nigeria Customs Service and the Nigerian Export Processing Zones Authority, recently declared their commitment to collaborate on the integration of the FPSO. During the closing of the 2017 Practical Nigerian Content
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Conference held in Uyo, Akwa Ibom State, The Nigerian Content Development and Monitoring Board (NCDMB) has said that it will collaborate with the Independent Petroleum Producers Group (IPPG) to deepen Local Content implementation in the oil and gas industry. The Executive Secretary of NCDMB, Engr. Simbi Wabote, described indigenous crude oil producers as primary beneficiaries of the Local Content policy, having acquired divested acreages from international oil companies. According to Wabote, NCDMB plans to develop a strategy with the IPPG that would enable their members contribute significantly to Nigerian Content implementation like Total Upstream Nigeria has done with the Egina deepwater project, which has become the benchmark in the industry. He applauded the performance of indigenous producers, adding that, “some of them have raised production from 20,000 barrels of crude oil per day when they took over the assets to about 75,000 and 100,000 barrels. This clearly shows that the IPPG has a big role in Local Content development.” He also underscored the need for indigenous producers to comply with the Nigerian Content Act, noting that some firms had affiliated with international counterparts while some were listed on the Stock Exchange. The Executive Secretary confirmed the Board’s close collaboration with chief executives of international oil companies, describing them as active participants in Nigerian Content activities. “We brainstormed on some of the challenges they face and the things I want to pursue next year, so they would think about them.”
He also promised continued involvement of the Petroleum Technology Association of Nigeria (PETAN) and the international service providers in the implementation process. Assessing the Board’s performance in his first year in office, Wabote stated that ten strategic targets set at the beginning of the year had all been accomplished. To seal their commitment, Members of the Indigenous Petroleum Producers Group (IPPG) have pledged to henceforth support and comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. The local operating companies will sign a Service Level Agreement (SLA) with the Nigerian Content Development and Monitoring Board (NCDMB) and this will guide the submission and management of statutory reports between both parties. These resolutions were reached at a meeting between the Executive Secretary, NCDMB, Engr. Simbi Wabote and members of the IPPG recently. The independent producers also promised to partner the Board to equip the Petroleum Technology Development Fund’s Vocational Training facility in Port Harcourt, Rivers State, for the purposes of imparting key skills that are currently lacking in the industry. IPPG is constituted by 25 indigenous operators, including joint venture partners of the NNPC, marginal field operators and indigenous sole risk operators.
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Photo Speak
Some Important Faces at Total E&P Nigeria During The Practical Nigerian Content 2017 in Uyo, Akwa Ibom State
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POWER UPDATE
Nigeria’s Monthly Power Sector Operator’s Forum Making Progress Positively By Tobi Owoyimika
Since 2016, Babatunde Fashola, Honourable Minister of Power, Works and Housing usually meets with operators of the Nigerian power sector, on a monthly meeting held in various states within Nigeria. The Monthly Power Sector Operator's Meeting in Nigeria is making progress positively and have become a leading innovative platform where all stakeholders and industry players involved in the power business come together to discussing the challenges and opportunities in the Nigerian Power Sector. The meeting has also become a learning platform, sharing of information and coming up with solutions with the aim of providing sufficient and satisfactory electricity generation to the entire nation. The power sector operators are fully represented at the highest executive management levels, including Managing Directors and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC) Nigerian Bulk Electricity Trader (NBET), Gas Aggregating Company of Nigeria (GACN), the Nigerian Electricity Liability Management Company (NELMCO), the Nigerian Electricity Regulatory Commission (NERC) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry. The meeting acknowledges the need to improve on the responsiveness and awareness of the Distribution Companies' (DisCos') Customer Complaints Units (CCU), to ensure that all complaints from paying cus tomers are acknowledged and resolved accordingly. The meeting also identifies the shortage of gas, limiting power output from power stations, and solutions to facilitate adequate gas supply to the power plants nationwide. There is a top priority of investment in education and communication on electrical safety measures through the creation of a task force within the sector, with a plan to work with state governors to reduce accidents.
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Success Stories Since the launch of the meeting, there have been a significant improvement in the Nigerian power sector. The Federal Government of Nigeria have started to pay debts that have been verified as this is one of the major barriers the power operators were facing in the past years.
In an effort to resolve and minimize technical challenges, expand the load and promptly attend to Distribution interface issues and to upscale power delivery to distribution load centers nationwide, the Management of Transmission Company of Nigeria (TCN), has appointed Focal Person to interface with DisCos in order to ensure that the DisCos take more power to the consumers.
Recently, The Federal Executive Council approved the verified sum of Federal Government MDA debts of N25.9Billion, and its payment by setting it off against the debts owed by the DisCos to NBET. There have also been a progress in recovering debts due from international Customers
TCN is committed to revamping the nation’s transmission grid and have assured it will continue to intensify efforts aimed at completely transforming the power sector of Nigeria and to bring it to international standards.
According to reports from the 20th monthly meeting held in Owerri, Imo State, there have been a success in the connection of power to Magboro, Ibafo and nearby communities in Ogun state who had been offgrid for about 10 years.
In a statement issued at the 20th monthly power operator's meeting, the Ministry of Power said that it is still compiling the estimate of investment required to add capacity to absorb an additional 2000MW into the 33Kv networks of the DisCos to ensure more power gets to its customers. The Federal Government will review financing solutions for this investment with the DisCos.
Huge progress has been made to restore power to 16 out of 36 communities in Ondo North (Akoko Communities) and the challenges in Okitipupa. There have been a provision of more meters to customers in Ijeshatedo, particularly on Ajijedidun Street, Adamolekun Street and Abiola Alao Streets where 196 out of 244 customers had been metered. The sector has recovered 100MW from the damaged Afam IV Power Plant which was inoperative since January 2015.
Federa Executive Council (FEC) has approved payment of the verified amount of N27 billion of MDA debts, and the payment of the N701 billion Payment Assurance to guarantee gas supply to generating companies and ensure the continuation of power supply is operational. According to report, Payments for January – May have been made to Generating Companies respectively.
Nigeria’s Power House Transmission Company of Nigeria (TCN) is one of the business units under the Nigerian power sector, issued a transmission license for electricity transmission, system operation and electricity trading. TCN emerged from the defunct National Electric Power Authority (NEPA) as a product of the merger of the Transmission and Operations sectors on April 1, 2004. TCN is playing a vital role in the power sector by installing and commissioning new transfers nationwide.
The Nigerian Federal Government has remained focused on providing service to the people, through independent power using solar energy, as well as the Energizing Education (independent power to universities), Energizing Economies (independent power to economic clusters), and encouraging eligible customers take control of their own power sources.
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POWER UPDATE
EnergyNet takes a bold step into Africa’s off-grid and on-grid Space The Managing Director of EnergyNet has revealed the company's financial supports towards African students looking to explore the energy sector in the region. He made this known to newsmen at a press conference at the Powering Africa: Nigeria Summit 2017 held in Abuja. According to EnergyNet's Managing Director, Simon Gosling: "We have financed up to 20 NAPTIN students over the last thress years and have also financed students from around the world to attend conferences in order to meet and network with industry professionals as this will help them position their careers in the right direction". He said, EnergyNet have also worked with 36 state governments and has supported 76 students across the African continent in the last 3 years. "We financed an offgrid energy projects in South Africa which is providing energy for a school. We are also building a microgrid in Sieria Loene and have just launched a new micro mini grids in Guinea Bissuae which we are working with various Government stakeholders and private sector," he added
By Jackson Olagbaju He adds: “Last year summit, we started to integrate conversation around the off-grid space in Nigeria. We are bringing people from Bogu who can engage the community and senators coming together to talk about the off-grid opportunities. But this year summit is focused on the integration of renewables on both offgrid and ongrid” Pan Africa Solar, Chief Executive Officer, Marcus Heal also commented: "This conference is focused on the recovery plan of the Nigerian power sector which has attracted high level delegates both regional and international to attend the event. The major discussions during the conference is focused on the power sector recovery plan and to bring people to contribute for the recovery of the sector. Next year edition will make a significant impact and there will be multi billion contracts to be signed within the power sector of Nigeria." Over 20 years, EnergyNet have a business portfolio from across the world and has been organising investment summits, business meetings focused specifically on the power and industrial sectors across Africa. The company facilitate investment summits where government officials, industry players and investors engage in an open forum to establish business relationships with the aim of providing energy solutions to the region.
Off-grid Solar set to triple in the Nigerian market By Jackson Olagbaju DEG, Director, Ragnar Gerig said Nigeria is in a similar situation with other African countries where there is a high need for electricity but state budgets are constrained not only on the commodity price but there are other things Government needs to put in place. He adds: “Basically, it is the right time to go for the private capital to invest in the sector. For instance, if you have 1GB of capacity, you can imagine that there is a lot of investment to be done. Today, we are in a situation that all these energy investments are only doable if you have a long-term finance. Otherwise, if you have to pay them off in a short-term, the tarrifs will be unaffordable for the people".
MTN New Y'llo Box paves way for affordable electricity supply and provides 247 electricity in Nigeria. Nigeria's offgrid solar is set to increase drastically as the sector is attracting foreign companies, developers and investors to exploring the full potential of the Nigerian power sector. During the 2017 edition of Powering Africa: Nigeria Summit held in Abuja, Solar is seen as the fastest growing alternative energy source in the world and is making a big impact in Nigerian energy mix.
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Nigeria’s Minister of Power, Works & Housing, Babatunde Fashola said that the footprint of solar energy is increasing day-by-day in Nigeria as the country records more solar products in the market and it have triggered his ministry to start compiling the data of the variable numbers of solar products such as solar home systems, minigrids, offgrid installations and how much energy is consumed in Nigeria.
He further explained that the longterm financing can only be brought in today by DFIs and other investors that can take a long-term view as it is often not investors who are coming directly from Nigeria. He adds: "If you ask investors to come from the outside, they want to be sure that they are investing their money for a long-term, the investment environment should be conducive for them and all parties involved will keep the obligations based on the agreement established". He said the company faced some hook ups last year due to the economy situation in Nigeria but they are very optimistic that it will be resolved soonest and then there will be more solar projects launched in Nigeria in 2018.
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POWER UPDATE
ECOWAS Commission announces major interest to invest in West Africa’s growing power sector By Tobi Owoyimika President of the ECOWAS commission, Marcel de Souza, has revealed plans to invest in the Nigerian power sector. The presentation was made by Dr. Morlaye Bangoura, Commissioner for Energy and Mines, ECOWAS, on behalf of the President of ECOWAS Commission at the Annual Powering Africa: Nigeria Summit 2017 with the theme “Power Sector Recovery Programme: Recapitalising Nigeria’s Energy Sector.” He said that despite the challenges being encountered in the power sector, Nigeria is expected to meet 50 per cent energy needs in Niger and Benin Republic, adding that Nigeria is the major provider of natural gas to other countries of the region through the West African gas pipeline. He also commented that Nigeria is the power house of West Africa and consitutue a key pillar in the process of establishing electricity back in the region. And, strengthening the power sector in Nigeria will contribute to enhancing energy access in the entire region. According to him, the commission is moving from ECOWAS of state to an ECOWAS of people as part of its vision 2020 plan. The commission has decided to focus primarily on activities that will positively impact on the living condition of people in the region.The power sector constitutes one of the key pillars of the region because without energy, it is impossible to have sustainable economic and social development. "Despite the rich energy potential in the region such as oil gas, hydro electricity, solar. Our region is capitalize by low energy access of about 35% per capital energy consumption rate of 150KW power per year which is one of the lowest in the world." He added
ECOWAS comprises of 15 member states with an estimated population of over 350 million people accounting for more than 40% of the population in the sub-saharan region. ECOWAS Commission is ranked among the most successful region in the continent including the public and private sectors. As part of its fundamental power chase, Ecowas has been active in providing access to Sustainable and Affordable Energy to the West African Communities.
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He further explained that ECOWAS has been active in pursuit to sustainable and affordable energy which is one of the commission's fundamental power chase. The strategy developed within this framework is built on five pillars, namely; Energy Program on Policy Organization, Establishing of Open and Competitive Regional Energy Market, Movement of Energy within Member States, Development of Natural Gas for Electricity Production, Promotion and Development of Elvoving Energy and Energy Efficiency. He said, By 2025, the region aims to achieve 10,000MW of energy production, 800MW of renewable energy, 16,000 power range lines, 100 percent access to clean energy and the extension of the West African Gas Pipeline of all its 15 member states. This requires an investment close to $35 billion. In his closing remark, he urged international communities, investors, and industry players to invest in the Nigerian Power sector in order to improve access to electricity in the entire sub-region.
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TOP STORY
Germany Contributing to Renewable Energy Use in Nigeria
By Obineme Ndubuisi Micheal
Nigeria is ranked as the largest economy in Africa and has the largest oil reserves in the Economic Community of West African States (ECOWAS). It also offers great potential for renewable energy developments. However, the country’s power sector is unable to meet the increasing demand for electricity. In order to address the challenges in the power sector, the Nigerian government has initiated various reforms such as the power sector recovery program and also engaging with industry players through various forums with the aim of providing consistent power generation in the country. For the private sector to play a more active role, there are needs to be further harmonisation across the institutional landscape and between the current political, regulatory and legal frameworks. It is also necessary to build technical and administrative capacities so that the measures introduced by the federal government and the federal states can be properly planned and implemented. This articles highlights how Germany have been contributing to Renewable Energy Use in Nigeria through various invesment programs and organizing events for investors to come explore the full potential as the Nigerian power sector is something very important in the West African region.
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Over 40 years ago, Nigeria and Germany started a bilateral agreement fully supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. GIZ offers workable, sustainable and effective solutions in political, economic and social change processes. It is the aim to enhance the capacities of individuals, organizations, and societies, so that partners can articulate, negotiate and implement their own ideas for reform and development.
The European Union and the German government provided a total of sum €25m (N8.1bn) as energy support fund for the first phase of the Nigerian Energy Support Programme. According to the Federal Ministry of Power, Works and Housing, five states in the country are already benefiting from the NESP project, explaining that the programme was part of the Sustainable Energy for All initiative of the United Nations.
GIZ currently has offices in the capital Abuja as well as in Jos (Plateau State), Minna (Niger State) and Abeokuta (Ogun State). In total, 31 international seconded experts, 122 national staff members and another 4 experts of the Centre for International Migration and Development (CIM) work for GIZ Nigeria.
The Deputy Director, Renewable Energy, FMPWH, who doubles as the Country Focal Point, SE4All, Mr. Faruk Yabo, said that the NESP One is being funded by approximately €25m, which is the contribution from the European Union and the German government.
As agreed between the Governments of Nigeria and Germany, GIZ works in major sectors with a particular emphasis on micro, small and medium-sized enterprises which also comprises energy, agricultural value chains as well as support to the ECOWAS commission.
On locations where the NESP was implemented, Niger State government is one of the five partner states that is under the Nigerian Energy Support Programme, funded by the German government and the EU, and is implemented by the Ministry of Power together with the GIZ.
The German Federal Ministry for Economic Cooperation and Development (BMZ) commissions and funds most of the organizations’ engagement but also other German federal ministries commission and fund GIZ with programmes in the field of international cooperation. Lately GIZ Nigeria receives increasing co-funding as an implementing agency for delegated cooperations of the European Union (EU) as well as by the Bill and Melinda Gates Foundation (BMGF) and private businesses.
Aside from Niger, other states in the partnership include Sokoto, Cross River, Ogun and Plateau. The NESP aims to improve the conditions for investments in renewable energy, energy efficiency, and rural electrification. Policy advice to improve relevant institutional and policy framework conditions is provided on the federal level. Five selected states will also be supported on measures for electrification of rural and peri-urban areas through the usage of
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TOP STORY
renewable energy, particularly small-scale hydropower and solar plants. The aim is to draw attention to socially acceptable and eco-friendly as well astechnically and economically viable solutions, in order to support their replication throughout the country. This is being complemented by comprehensive training measures for partners and professionals within the Nigerian power sector. Recently, two off grid projects were launched in Nigeria, one consisting of a partnership between German based solar developer, Pan Africa Solar and BBOXX (PAS BBOXX), adding to the growing momentum of the off grid sector. The first project – headed up by Pan Africa Solar is an 80MW utility scale Photovoltaic Power Plant located in Katsina State, near the town of Kankia. The project focuses on a stable state in the north of the country, where – due to lack of available hydro resources and gas supply – renewables are the only long term sustainable option. The project will integrate panels mounted on tilting structures that track the path of the sun throughout the day, constructed on 210 hectares of land. BBOXX collaborated with Pan Africa Solar on a second project supplying the distributed energy service that is operating in Kano State, Northern Nigeria, with hopes to expand across the country. To date, 2000 people have been impacted by the work in Kano, and the business is currently in the process of scaling its operations. The partnership between BBOXX and PAS is instrumental in leveraging expertise in the off-grid business combined with local market knowledge to successfully scale operations with a goal of electrifying 1 million people by 2020. According to report, Nigeria has 60 million people who lack access to electricity. But, with the recent movement for the promotion of cleaner and more modern energy has led to significant reforms in the Nigeria power sector. The regulatory space around solar power investments in Nigeria has also seen some transformation, which has served as an incentive for the recent growth in both off grid and on grid solar power developments. The work is far from complete but the willingness of the Nigerian government and policy makers to further develop the space is evident. One of the most recent and ongoing policy reforms in this direction is the Mini Grids Regulation, the draft of which has been shared by the Nigerian Electricity Regulatory Commission (NERC). NERC stipulates “The object of this regulation is to accelerate electrification in areas without an existing distribution network (“unserved areas”) and areas with an existing but poorly electrified or non-functional distribution grid (“underserved areas”) by attracting (the) participation of the private sector, communities and Non-Governmental Organizations in achieving nationwide electrification.” Engr. Chinedum Ukabiala, the Deputy General Manager at NERC and the Head of Renewable Research and Development (RRD), indicates that the strategic gains of the Mini Grids Regulation to market players are that there is the opportunity to start a small business in electricity generation and distribution and then expand to bigger utility companies with the expected benefits of improved revenues and returns.He adds that it is easier and simpler to start a small business than large scale businesses in the electricity industry and this is more so when the regulation will be light-handed. Renewable energy such as solar is best positioned to leverage the improvements in mini grids regulations, given its scalability, ease of deployment and abundance in Nigeria. The Rural Electrification Agency (REA) has disclosed that its study on Nigerian mini grid electricity development potential revealed annual investment opportunities of 9.2 billion dollars.
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Its Managing Director, Mrs Damilola Ogunbiyi, disclosed this while making a presentation at the mini grid action learning event in Abuja. Ogunbiyi, who spoke on “Overview of the Off-Grid Opportunities and Challenges in Nigeria“, said there were enormous opportunities than challenges in the provision of electricity through mini grid and solar home systems. She also disclosed that REA, with the support of the World Bank Group, were working together to provide the required funding for the Nigerian Electrification Programme. According to her, the support from World Bank is expected to bring in 350 million dollars which would be dedicated to the development of mini grid electricity in Nigeria. The REA managing director said that Federal Government had created an enabling environment for mini grid operators through the provision of a mini grid regulation. She also said that the REA, through government, had also made provision for a rural electrification fund, adding that investors and developers should key into the fund.
Biogas Development in Nigeria: The Consulate General of the Federal Republic of Germany in Lagos, organized a seminar on “Biogas Production and Waste Management” which took place in Lagos recently. The event was the continuation of twelve successful seminars on the Renewable Energy Potentials in Nigeria initiated by the Consulate General of the Federal Republic of Germany in Lagos in 2014. The event was financed and also facilited by the Foreign Energy Policy Fund of the German Ministry of Foreign Affairs, the Energy and Environment Desk of the Delegation of German Industry and Commerce in Lagos (DGIC) and the Embassy of the Federal Republic of Germany in Abuja. Mrs. Alexandra Herr, the Deputy Consul General said the German government is very commitment to promoting renewable energy in Nigeria. Speaking further, Mr. Olasunkanmi Akindele, Project Assistant of the Energy and Environment Desk at DGIC said that given the current energy gap and waste management challenges in Nigeria, biogas technology presents a comprehensive and sustainable waste-to-energy solution for improved productivity in industry and a safer environment. Biogas is utilized worldwide to redress fluctuating energy demand, produce fertilizer, cooking gas and biofuels. It also serves to mitigate deforestation, CO2 emissions and other environmental concerns associated with non-sustainable waste disposal and management practices. There was huge interest focused on the development of biogas as a viable alternative energy source to fossil fuel generators and as an effective tool for integrated solid waste management in Nigeria. It highlited on best practices, perspectives and current bioenergy trends from Nigeria, Ghana and Germany. Investing in Africa's Energy Projects The German Development Bank, and the African Trade Insurance Agency (ATI) announced a few weeks ago, that a new instrument has been allocated to support renewable energy projects in sub-Saharan Africa which targets small- and midscale (up to 50 MW) green power renewable energy projects.
The facility is designed to provide a viable solution to one of the biggest challenges facing independent power producers (IPPs) operating in Africa, specifically the requirement to provide project lenders with a liquidity guarantee. The German Federal Ministry of Economic Cooperation and Development (BMZ) through KfW will provide funding of up to 32.9 million EUR to the facility, which aims to enable small-and mid-scale renewable energy projects in Africa to reach financial close by addressing liquidity requirements that lenders frequently require in order to fund such projects. The International Energy Agency (IEA) expects sub-Saharan Africa’s renewables capacity to grow by 73% (24.4GW) over the period 2017-22. In addition, small-scale projects are seen as a potential solution to Africa’s energy deficit because they are easier to implement and can target energy requirements at source, but these projects find it difficult to access the type of guarantees needed to reach financial closure. The facility will kick in by providing immediate liquidity to keep the IPP afloat during periods of payment delays that are beyond the grace period provided in the power purchase agreement. Günther Nooke, Personal Representative of the German Chancellor for Africa, BMZ, said “The Regional Liquidity Support Facility will address a key challenge in renewable energy project finance and de-risk private sector investments. We are pleased to provide the funding to this innovative instrument underlining Germany’s commitment to the objectives of the African Renewable Energy Initiative (AREI).” The RLSF is designed to help independent power producers (IPPs) developing renewable energy projects in Africa to obtain the liquidity they need in the event that their off-taker (frequently a state owned entity) delays payment. The facility will provide immediate cash collateral supported by guarantees to a commercial bank that will in turn open a standby letter of credit to the benefit of the IPP. The amount provided will enable the IPP to operate and service the debt for up to 6 months. Furthermore, unlike most IPP letters of credit (which tend to be 12 month tenors) the facility is designed to be in place for multiple years. Dr. Thomas Duve, KfW Director Southern Africa and Regional Funds, noted “We highly appreciate the opportunity to partner with ATI on this innovative instrument. The RLSF is a strongly market-driven concept, emphasizing KfW’s strategy to support and leverage the resources of local partners and the private sector.” The facility, in combination with ATI’s traditional suite of political and trade credit risk insurance products (in particular ATI’s arbitration award default cover), means that ATI is able to cover the full range of political and financial risks facing investors on such projects. Speaking at the launch, John Lentaigne, ATI’s Chief Underwriting Officer commented “We are delighted to be working with the German government, represented by KfW, on an initiative that directly targets one of the main bottlenecks preventing green power projects from being financed in Africa.” Jef Vincent, Senior Advisor to ATI, who has overall responsibility for the initial implementation of the facility, added “Unlike some of the alternative solutions to the liquidity issue, ATI’s guarantee (as provided via the RLSF) will not require a counter-guarantee from the relevant Ministry of Finance, and as such we are confident this will be a very useful tool for those projects that we expect to support.”
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INTERVIEW
‘In Nigeria, there is so much potential. Nigerians are open, eager and ready to take chances. Anytime you are outside the country, you feel like Nigerians aren't Hausa, Yoruba or Igbo. But then, there is the need to create policies and good economic framework. You can restructure without hate speech or violence’ Ingo Herbert German Consul General, Ingo Herbert, hosted a meeting with Obineme Ndubuisi Micheal, Oil and Gas Republic's Correspondent. At the meeting, the Consul General talked about Germany's major activities in Nigeria and how its government is contributing to renewable energy development in Nigeria. OGR: Please tell us about your career as a diplomat? Ingo Herbert: I am a career diplomat. I entered the German Foreign Service in 1988. I have had different postings but this is my first time of being Head of Mission. I was Deputy Ambassador in South Africa and Tanzania. I have been in the Middle East and Moscow. By training, I am a lawyer. I have been Consul General for two years. In important countries like Nigeria, the embassy is always in the capital with the government. However, just like you have the Nigerian Consulate in Frankfurt and New York, other cities like Lagos play role as the economic capital. In Sub-Saharan Africa, we only have a consulate in Cape Town and Lagos. We do all the consular work for Nigerians. Abuja is doing a very limited work. OGR: What is your greatest achievement so far? Ingo Herbert: It is a work in progress. We had our president here last year. Unlike Nigeria, we have a ceremonial president like a king and we have the Chancellor Merkel who is the head of the executive. I was glad that he was also in Lagos not only in Abuja. We have been able to improve the German presence and visibility in Lagos. We have made some progress. We have also established good contacts with the Lagos and Ogun state government. The Governor will be in Berlin to participate in a conference. We are working with German institutions here in Lagos. Although it is a medium term project, we are planning on having a German House. OGR: How are you going about improving relationship between Nigeria and Germany? Ingo Herbert: As I pointed out, in principle you could say the political and security relations are handled by the Embassy in Abuja. In Lagos at the consulate, we focus on the economic, cultural and scientific cooperation. For instance, for trade promotion and strengthening economic relationship, we have what we call the Delegation of German Trade and Industry but there is also the Nigerian German Business Association. So, we work very closely together to foster economic relations. By end of this year in Frankfurt, at the Nigerian German Business Forum, we hope to have at least 60 people from Nigeria On the cultural aspect, under present funding from the German government but independent in their work. So, they are in the cultural domain and well established. Among artistes, they appreciate what they do in music. Now, more Nigerians want to learn German.
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On the scientific aspect, we have the German Academy Exchange Service with scholarship offer. In all, we have about 1, 500 Nigerians studying in Germany. There are other applications as we speak, but we cannot fulfill the Visa request on time. There is also the Deutsche Welle which is funded by the German government. They have their correspondents covering the whole West Africa here in Lagos. They are completely independent in what they do and how they do it. For the German Academy Exchange Service, we have 2 lecturers in Ife and Ibadan. These are the focal area. We are working with the delegation to get more German companies to come to Nigeria to foster cultural exchange in both sides. We have Nigerian artistes living and working in Germany.
Ingo Herbert: The figure of German export to Africa is low compared with the rest of the world. In 2015, only 2 per cent of our export came to Africa. We are number one export nation even by passing China. My guess is Germany is currently looking at Africa and exploring the possibility and opportunity. You see in Nigeria for years, you were focusing on Oil and Gas for decades. You neglected the industrial base which existed before. And now Nigeria has finally realized in the business community that there is a need to diversify. There are lots of initiatives that have been taken and it is right starting with sectors like agriculture where you can employ a lot of people, the construction sector among others. All these attract investment both local and foreign. However, I would like to commend the current government on their business dialogue.
OGR: What are your challenges? Ingo Herbert: One is the improvement of Nigeria’s image in Germany and to get more German companies come to Nigeria again. Although everyone knows doing business is not easy, many German businesses look first to Kenya and other countries. But also they see Nigeria because of the market. This is a major challenge. Although it remains very difficult doing business, but with the right partners, there are lots of opportunities. We are big because we have a big consular section with many staff and then to maintain a good service we don’t outsource our visa application system, we do it ourselves. Yes, we have a reputation for being strict, we check because it is necessary due to a lot of fraud. This is also a challenge every day. OGR: Since the establishment of German-Nigerian Binational Commission in 2011, please can you update us on the progress and recent achievements so far? Ingo Herbert: On the official level, we have the bi-national commission which meets every two years. There was a meeting last October chaired on the German side by the Foreign Minister. As you may know, we have elections on 24th September. So, there won’t be a meeting this year but next year. They are a working group and they meet to dialogue on the Permanent Secretary level of the Foreign Ministries. This is handled mainly by Abuja. In the last 3 years, we have seen more German companies opening offices in Lagos. A German company opened in April. You may not know the company, but you know the product, Nivea Cream. We have about 80 German companies in Nigeria and most of them are here in Lagos. We have companies like Julius Berger, although it is no more a
Germany company but it is still under German management. OGR: What steps are being taken to ensure German companies are brought back?
In Germany, one of our success is close dialogue between the government and the business community. It is very important to listen to each other. The backbone of the German economy is not the big companies like Siemens but the small and medium sized companies. Medium sized means they have about 3000 to 5000 employees. When you mention manufacturing, Nigeria becomes interesting. Another aspect is the automotive industry. In about 10 to 20 years, we will be talking about driverless cars. The potential is enormous. In Benin Republic, Volkswagen has started with the assembly but on a very low level but that also depends on the conducive environment. During unification in Germany, the East Germany’s economy was almost ruined. It took 25 years to rebuild. Of course, West Germany was richer. So, there could be transference of more than 70 billion Euro every year. Nigeria is coming out of the recession slowly but you cannot expect a boom time again so easily. I can only advise to bring more German partners. There are so many young people. You have to create jobs and more than 50 per cent of the population is between 15 to 25 years and they want to do something. Government should not just focus on Oil. Although the world is now going to electronic mobility, there is still need for it. We have this project in Germany to focus more on renewable energy. By 2050, we target having 80 per cent of our energy from renewable energy. There is potential in renewable energy. This is a challenge for our very sophisticated environment. Some technology still has to be developed. OGR: How is German government supporting Nigeria in the area of renewable energy development? Ingo Herbert: We have the Nigerian German Energy Partnership and that is included through the embassy. There are committee meetings on both sides in which energy companies are part of it. We also have Public and Private Cooperation.
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INTERVIEW
On the other hand, we have two focal areas. One is to support economic growth to strengthen especially SMEs business activities and technically to gather up additional funds from the European Union (EU) for the renewable energy sector to support project. There is an investment of about 25 million Euro to support renewable energy project. OGR: How vast is Germany in the world energy market? Ingo Herbert: In the Oil and Gas sector, we don't have major companies as we don't have oil. We buy our Oil and Gas from the world market. Of course, we have Oil and Gas companies in Germany but I don’t think they are playing world leading roles. Where Germany is involved is technology. When it comes to renewable energy, Germany is leading. We have a very ambitious policy to develop the technology for instance on solar panel production.
Accounting and this system has been helping for more than 100 years.There is also appreciation of skilled workers.
OGR: What is your expectations from Nigeria in the next five years?
Here in Nigeria, you only look at the university certificate. A good education does not necessarily mean you only have to go to tertiary institution. With our German Vocational training, we try several programmes. We have a German Round Table. The German Development Agency (GIZ) has a lot of training in Plateau and Enugu states. We have companies that are willing to train people and then the school system.
Ingo Herbert: Here in Nigeria, there is so much potential. However, an environment has to be created where people can have the opportunity of using their great potential. Nigerians are open, eager and ready to take chances when they have the chance to do something. Anytime you are outside the country, you feel like Nigerians aren't Hausa, Yoruba or Igbo. But then, there is the need to create policies and good economic framework. You can restructure without hate speech or violence.
There are lots of young Nigerians who need a job. Companies tell me, “we need skilled workers but the candidates we receive are not well prepared for the job”. There is a need for industrial trainings. There is a lot of industrial activity in Lagos and Ogun states.
We have moved to cheaper places for production but the technology is more advanced. Therefore, we are an advocate of free trade.
In Germany, we have about 5 per cent unemployment rate although the economy is doing very well. We have the shortage of about 200,000 skilled workers especially in the area of electronics and mechanics.
OGR: What kind of innovative programmes do you offer young Nigerians?
OGR: Aside from been a diplomat, do you go out to see our country?
Ingo Herbert: The implementation is with the Delegation of German Trade and Industry. We have two interesting programmes for young Nigerians. We have MAKE –IT which is specifically for startups and supported by the German government through the Ministry of Economic Cooperation. The other thing is when people ask about the German concept. There is a vocational training which is the specialty of the German system. They are trained in the company and may be for 3 months. Each of the 16 states in the Federal Republic of Germany is involved in this. They learn about Marketing,
Ingo Herbert: I have been in South Africa, Tanzania but I cannot travel much in the country. In Nigeria, there is so much beautiful landscape. But I have been to Abeokuta,, Ibadan, Osogbo, Port Harcourt and Benin City. But honestly, not like you will travel in South Africa or Tanzania. But in Lagos, I go out a lot. Every weekend, I try to discover Lagos. I don’t go much to the beach. I am very much a cultural person. I enjoy the country scene. I love Jazz and Afro beats. I love sports. We have a Tennis court here in the compound.
Corruption needs to be removed. I hope the social media can strengthen institutions like the Economic and Financial Crimes Commission (EFCC). For instance, if any staff is involved in Visa fraud at the German embassy, such person is fired immediately. In Germany, if you want to be a millionaire, you enter business not politics. We know our Members of Parliament (MPs) and how much they receive. My expectation is that you use the potential, develop the framework in all the sectors of the economy. In this day of world politics, we need more partnership and we would like to see Nigeria as one of our most important partners. OGR: How would you evaluate German investment in Nigeria? Ingo Herbert: Trade in 2015 was 3 billion Euros. 1.8 billion euro export to Germany and 1.2 billion euro to Nigeria.
Germany awards over 2,000 scholarships to Nigerians through DAAD funding The German Academic Exchange Service known as DAAD is the largest German support organisation in the field of international academic co-operation. Founded in 1925, it is the largest funding organisation in the world supporting the international exchange of students and scholars. DAAD is a registered association and its members are German institutions of higher education and their student bodies. Its activities go far beyond simply awarding grants and scholarships. In 2012, 171 Nigerians and 23 Germans were funded by DAAD. Since 1960, 2027 scholarships were awarded to Nigerians. The scholarships offer Nigerian graduates from development and newly industrialised fields from all disciplines and with at least two years’ professional experience the chance to take a postgraduate or Master’s degree at a state or state-recognised German university, and in exceptional cases to take a doctoral degree, and to obtain a university qualification (Master’s/PhD) in Germany.
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DAAD promotes the training of specialists from development and newly industrialised countries. Welltrained local experts, who are networked with international partners, play an important part in the sustainable development of their countries. They are the best guarantee for a better future with less poverty, more education and health for all. The funding supports university partnerships between German and Nigerian universities. Also the improvement of university management and quality assurance receives a special attention. All programmes are based on the interest in, and commitment to, development cooperation shown by many German universities. The DAAD uses these programmes to make the knowledge and expertise at German universities available for development cooperation.
Germany and more applications are still coming in. He said the government would remain steadfast in its support to improve German presence in Nigeria. And, so far, they have already established good contacts with the Lagos and Ogun state government as they are planning on having a German House within the country. "For the German Academy Exchange Service, we have 2 lecturers in Ife and Ibadan. These are the focal area. We are working with the delegation to get more German companies to come to Nigeria to foster cultural exchange in both sides. We have Nigerian artistes living and working in Germany," - Consul General said
The Consul General of Germany in Lagos, Ingo Herbert, said that there are over 1, 500 Nigerians studying in
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CORPORATE PROFILE
Germany, a Strong Partner for Nigeria
Ingo Herbert, Consul General of the Federal Republic of Germany Since 1988, Ingo Herbert has been a diplomat and have worked in different countries such as South Africa , Tanzania, Middle East and Moscow. He is a lawyer by profession. Since September 2015, Ingo Herbert has been the German Consul General in Lagos, Nigeria. In Sub-Saharan Africa, German only have a consulate in Cape Town and Lagos. The consulate have been able to improve the German presence in Lagos by establishing a solid contacts with the Lagos and Ogun state government. The Consul General acknowledged Lagos as the economic, cultural and media center of Nigeria. That is to say, the Consulate General within its administrative district (southern part of Nigeria) is dealing with the whole spectrum of consular services as well as with the economic, cultural, media and social aspects of its manifold bilateral relations; new fields like questions of urbanization, renewable energies or sustainable development. During weekends, the Consul General go out to explore Lagos as he is a cultural person, loves Jazz and Afro beats including sports.The German Embassy usually organize a Soccer Tournament for International and IDP-teams in Abuja. The New Kuchingoro IDP/Refugee Camp fielded 5 excellent teams, squaring off against squads from the Embassies of Germany, Argentina/Finland and Adam Smith International (UK). The partnership with the New Kuchingoro IDP camp came about in February 2016 when the Former German President Joachim Gauck visited the IDP camp. The idea behind the tournament was to reach out to the affected communities of the IDPs. To that effect the IDP teams received sets of matching jerseys and soccer balls to bring back to their communities in the New Kuchingoro Camp. Everybody involved had a great time.
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Working group on policy of the German-Nigerian Binational Commission meets at the Federal Foreign Office
Germany is a reliable, credible and experienced partner for peace, security and stability. Conflict prevention, stabilisation and post-conflict peacebuilding are among the core pillars of its foreign policy.
university in line was Ahmadu Bello University, Zaira, after which the project would be taken to Modibo Adama University of Technology, Yola; Bayero State University, Kano; University of Maiduguri and others.
Both countries established the German-Nigerian Binational Commission in 2011. It is intended as a forum for discussing the entire spectrum of bilateral topics as well as international issues. Nigeria is ranked as the most populous country on the African continent. More than 80 German companies are doing business in Nigeria. The German Government is currently supporting the country with, among other things, comprehensive humanitarian assistance for internally displaced persons in the northeast of the country.
Media reports quoted that 39 other federal universities may soon quit the national electricity grid, to take all of their electricity supplies from off-grid renewable energy solutions – preferably solar power.
The Nigerian-German Energy Partnership, NGEP, installed a 10 megawatt solar plant project at the University of Ibadan in 2016. The project, worth about $17,670 USD approximately N3.52 million naira. The Nigerian-German Energy Partnership is a business-tobusiness platform launched under the auspices of the German Federal Foreign Office and the Nigerian Federal Ministry of Power. It seeks to foster beneficial ties between German and Nigerian companies in the power sector, and one of its key initiatives is the construction of large-scale solar power plants across the country. Within the energy partnership which has existed since 2008, and the German-Nigeria Binational Commission, the project of the University of Ibadan is a project which is very promising and serves as a pilot project for universities in the country. The solar plant provides electricity for the university and also serve as a training site for engineering students of the institution and technicians. German Ambassador in Nigeria, Mr. Bernard Schlagheck, said the project was aimed at empowering universities in the country. He also said that the next
The good relations between Germany and Nigeria was also reflected in the cultural sphere. A bilateral cultural agreement was signed in 1999, placing cultural relations between the two countries on a sound footing in international law. German government advocated for an active involvement of the German private sector in the whole Nigerian economy – not just in the energy/power sector. The Nigerian-German Business Association (NGBA) was established on the 15 October 1986 with the aim to ensure better trade collaboration between both countries. NGBA has pioneered initiatives and collaborated with stakeholders to promote bilateral relations between both countries. All stakeholders in Nigeria and Germany are working collaboratively to maintain a harmonious and mutually beneficial relationship between both countries. The Nigerian German Business Association is at the forefront of tranforming businesses from both countries. NGBA has also pioneered initiatives and collaborated with relevant stakeholders to ensure conducive atmospherics for good bilateral relations between both countries. NGBA organises trade delegations, exhibitions, business to business meetings, trade facilitation and several other platforms for beneficial stakeholder engagement in both countries.
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UNEARTHING NIGERIA’S MINING SECTOR
Photo Gallery
Snapshot of Oil and Gas Republic Media Coverage at Deutsche Welle (DW) Bloggers Award in Lagos
Oil and Gas Republic Journalist, Obineme Ndubuisi Micheal with Ingo Herbert, Consul General of the Federal Republic of Germany - Lagos
Oil and Gas Republic Journalist, Obineme Ndubuisi Micheal with Claus Stacker, Head of Programs for Africa, Deutsche Welle (DW)
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Photo Gallery
Snapshot of Oil and Gas Republic Media Coverage at Deutsche Welle (DW) Bloggers Award in Lagos
Oil and Gas Republic Journalist, Obineme Ndubuisi Micheal with Adrian Kriesch, Africa Correspondent, Deutsche Welle (DW)
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COUNTRY PROFILE
FEDERAL REPUBLIC OF GERMANY
...Germany has become the leading market for resource- efficiency and green energies. The Federal Republic of Germany is the largest economy in the European Union and the fourth largest in the world after the United States of America (USA), China and Japan. Berlin, its capital, is home to art and nightlife scenes, Munich is known for its Oktoberfest and beer halls, including the 16th-century Hofbräuhaus. Frankfurt, with its skyscrapers, houses the European Central Bank. Germany is one of the countries with the highest employment rates in Europe and is the country with the lowest youth unemployment percentage. Germany is also one of the 12 countries which introduced the euro in 2002. No country in Europe has more neighbours than Germany. It shares its border with nine countries, eight of which are Europen Union (EU) member states. The country enjoys a moderate climate, In July, the mean maximum temperature is 21.8 degrees Celsius, the minimum 12.3 degrees. In January, the mean maximum is 2.1 degrees, the minimum - 2.8 degrees. The highest temperature since records began was recorded on 5 July 2015 in Kitzingen am Main, namely 40.3 degrees Celsius. Germany’s electricity supply is becoming "greener" every year as the contribution made by renewable sources is constantly growing. In 2016, renewable energy already covered roughly 29% of gross electricity generation (total volume of electricity generated in Germany) (cf. diagram). The expansion of renewable energy is one of the central pillars in Germany's energy transition as the country want to make electricity supply more climate-friendly and, in light of an increasing scarcity of resources, become less dependent on fossil fuels. The growing significance of renewable energy sources in the power sector is largely due to the Renewable Energy Sources Act (EEG). Since the adoption of the Renewable Energy Sources Act, the proportion of gross power consumption (total volume of electricity consumed in Germany) accounted for by renewable energy has risen from roughly 6% in 2000 to 31.7% in 2016 according to preliminary data. By 2025, 40-45 per cent of electricity consumed in Germany is to derive from renewables. Wind and solar energy are the most important forms of renewables. Biomass and hydropower are also valuable building blocks of our energy system.
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Solar power: According to German Federal Ministry for Economic Affairs and Energy, At the end of 2015, more than 1.5 million photovoltaic installations with a total capacity of 40 gigawatts accounted for the second largest amount of electricity generation capacity in Germany, behind approx. 26,000 wind energy installations (45 GW). Wind energy plays a crucial role in expanding renewables. It now accounts for about 12 per cent of the German power supply. Apart from expanding wind energy in suitable onshore locations and replacing older, smaller turbines with modern and more powerful ones – known as repowering – expanding offshore wind energy is playing a growing role. At the end of 2016, Germany’s offshore wind power capacity in the grid reached around 4,108 megawatts (MW). The Federal Government is aiming to bring this figure up to 15,000 MW by 2030. Biomass in solid, liquid and gaseous form is being used for electricity and heat generation and for the production of biofuels. Almost 60 per cent of the total final energy from renewable sources was generated by the different types of biomass.
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GERMANY’S RE TRANSITIONS
Electromobility: German car manufacturers to produce one million electric cars by 2020
Electromobility is also expected to give environmental and climate protection a further boost. The electromobility of the future is likewise a key issue being addressed today in China, Japan, and North America. The Federal Government and the automotive industry are jointly pursuing the ambitious goal of making Germany the leading market for electromobility and locking into the immense potential this global market has to offer. The plan is for there to be around one million electric cars on Germany's roads by 2020, helping lower carbon dioxide emissions still further, a sixth of which stems from road traffic. The German car manufacturers are addressing e-mobility concepts in great depth and have around 29 electric models in their ranges (as at the end of 2015), including vehicles such as the BMW i3. 1.79 million kilometres is the length of the German national grid. You could circumnavigate the globe at the Equator 45 times using the cables. The vast majority of the grid, namely a total of 1.44 million kilometres or 80 percent, is underground. Around 350,000 kilometres are power lines. The supraregional high voltage lines are 34,810 kilometres long. About 2,650 kilometres of new power lines are being planned as part of the Energy Reform. In order to help electric cars make their breakthrough, the German Government has promised that owners of such vehicles will be allowed to use bus lanes, will enjoy reserved parking spaces, and special registration plates. It has also considerably increased spending on energy research, with a particular focus on more powerful batteries for electric cars. The "2020 Battery" project is regarded as a showcase project and is intended to produce evolutionary, advanced materials for R&D on the most efficient battery systems. However, German and European universities and higher education institutes now offer around 1,000 innovative courses in the field of renewable energies and energy efficiency, which attract many international students.
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Recently, E.ON, a European holding company based in Essen, North Rhine-Westphalia, Germany, launched a new tariff for electric and hybrid vehicle owners which uses energy purchased from 100% renewable electricity and green gas. The company is setting a strategic focus on e-mobility. The Group has established a new unit with the aim of taking a leading role in developing and expanding Europe's charging infrastructure. E.ON Fixed 1 Year Electric Vehicle is a dual rate tariff which offers customers access to a competitive day rate, and a night rate priced 33% below the day rate for use when many electric and hybrid car owners will choose to charge their vehicle. The tariff which also matches 100% of both the electricity and gas used with renewable energy guarantees of origin (REGOs) and green gas certificates (GCC), offers savings of £261 a year when compared with an average of all dual fuel standard variable tariffs offered by the larger suppliers and £173 a year, when compared with an average of dual fuel Economy 7 tariffs offered by the larger suppliers 1. With a saving of around five pence per mile for a full electric vehicle compared with petrol fuelled vehicles, electric and alternatively fuelled vehicle registrations have more than doubled in the last three years, reaching 88, 909 in 2016, a 3.3% share of the overall market3. Chris Lovatt, Managing Director of Residential at E.ON, said: “For many electric or hybrid car owners, choosing the right energy tariff may be the last piece of the jigsaw in helping them lower fuel emissions and energy costs.
In addition, E.ON is offering companies and municipalities in Germany innovative charging stations for either sale or lease. E.ON supports these customers applying for subsidies with regard to German government's new Charging Station Subsidy Directive, which is expected to go into effect in January. E.ON is also switching its own vehicle fleet to electric. The first step will be to gradually convert the existing German network fleet, which consists of over 4,500 cars and commercial vehicles. Over 150 vehicles have already been procured. Electric vehicle technology is more advanced. Smart charging networks and solutions make driving an electric vehicle easy and convenient. With some of the latest electric car models on the market, you can easily travel 300-400 km without charging. E.ON offer e-mobility solutions to both residential and business customers. International demand for electric mobility is growing every day and with its sustainable and innovative products and services, the company offer effective solutions for every market – especially in countries like the UK, Germany and Denmark. E.ON e-mobility in Denmark has launched brand new allinclusive charging solutions that offer electric vehicle drivers unlimited charging on the go or at home at a fixed monthly rate. The company have teamed up with Nissan to launch a special deal for electric vehicle buyers in Denmark. Buy a new Nissan electric car and get three years of unlimited charging from E.ON.
“At E.ON we’re focused on providing sustainable solutions for our customers’ homes and with the increase of electric cars on our roads we’re pleased to be able to offer a tariff which gives our customers the flexibility to access cheaper electricity rates backed by renewable sources to charge their vehicles, while helping them save on costs.”
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GERMANY’S RE TRANSITIONS
Coface Arena Stadium, largest solar rooftop power plants The Coface Arena is one of the newest stadiums in the Bundesliga having officially opened on 3rd July 2011 with a preseason tournament occurring a few weeks later between Borussia Dortmund, Hamburger SV, FC Bayern Munich and the home side Mainz. Construction took place over a 22 month period with the ground being broke on May 2009, but the seeds were sown way back in 2007 when the club’s management identified a new stadium was imperative to remaining economically competitive in the Bundesliga.
Coface Arena popularly known as Opel Arena is the home stadium of Bundesliga side Mainz and features a capacity of 34,034 with 19,700 of spectators seated. Coface replaces the Stadion am Bruchweg with a designed said to resemble the traditional English football stands such as the Kop and the Stretford end with their high stands. The stadium was initially called Coface Arena following a naming rights deal with insurer Coface, but got renamed Opel Arena in July 2016 following a new naming rights deal after the previous one had expired. The Coface Arena is situated just over 2.7 kilometres west from Mainz historic city centre within an seemingly agricultural area. With one of the largest solar rooftop power plants, the soccer stadium in Mainz is not only a sports venue, but also an energy production plant. 700,000 kWh are produced with an output of 846 kW- the system is owned by the local utility and private investors.
In total the stadium budget was 55 million Euros plus a further 15 million used for the purchase of nearby land, unforeseen costs and the club held a “competitive dialogue” with all the company’s who tendered simultaneously in order to ensure the most suitable bidder won. The actual cost came in at around €60 million which is something the English FA could learn from! The site of the Coface Arena has been labelled as the “gateway to the city” due to it’s accessibility, and this was one of the factors which helped the club make their final decision on the location. The 34,000 capacity was nominated in 2012 for “The Stadium Business Award” which is testament to the quality of the finished Stadion.
The first league goal scored in the new arena was scored by Tunisian International Sami Allagui for FSV Mainz 05 against Bayer Leverkusen on 7 August 2011. There are numerous car parks located around the perimeter of the stadium but bus is probably the easiest way to get to the stadium on matchday with a special shuttle bus service operating directly from the main railway station (Hauptbahnhof). Normal services which can take you to the stadium include Bus 68 (Closest stop is Ackermannweg) and Bus 69 (Closest stop is Fachhochschule). The main railway station of Mainz is the Hauptbahnhof and it is the busiest station in the Rhineland-Palatinate region with around 80,000 passengers served a day. Whilst there are good transport links to Europe and Germany. The three tram lines of Mainz have been regarded as the backbone of the local public transport. The nearest International flight hub is Frankfurt Airport which is around 33 km East of Mainz City centre. Once you have landed and are ready to travel to Mainz you can catch the S8 train towards Wiesbaden which stops at Mainz-Hauptbahnhof (Main train station). This will take you around 30 minutes and the service runs at a rate of around twice per hour.
As a way to celebrate the opening of the new stadium, FSV Mainz 05 (and the Coface-Arena) hosted the Ligatotal! Cup 2011, a short pre-season tournament. They invited the champions Borussia Dortmund, Hamburger SV and Bayern Munich. Borussia Dortmund won the tournament, FSV Mainz 05 finished last after losing to Bayern Munich in the third place play off.
Fritz Walter World Cup Stadium, 1.35 MWp rooftop solar power plant bring to an equivalent reduction of 856 tons of carbon dioxide, a major greenhouse gas, and 6.9 tons of sulfur dioxide, as well as 5.1 tons of NOx. In addition, the amount of electricity generated is equivalent to the reduction of 408 tons of coal consumption per year from a conventional coal burning power plant. Lite-On Green Technologies, Inc. is the manufacturer of the solar power plant. The company demonstrated its high quality PV modules, the extensive experience of roof-top PV installation and patented PV module mounting construction technology, but also directly invests in this PV solar energy generation project. The Fritz Walter World Cup Stadium is LiteOn’s first selfowned PV solar power plant in the world, which is a great milestone for Lite-On’s development in the global solar market. Lite-On Group determines to participate in the environmental technology development for the overall energy creation and saving, and the reduction of the emissions of greenhouse gases. The Group is committed to establishing a “Green Technology” supply chain from four major areas: energy creation, conversion, saving and storage.
Fritz-Walter-Stadium is the home to the Bundesliga club, FC Kaiserslautern, located in the city of Kaiserslautern, Rhineland-Palatinate, Germany. It was one of the stadium used in the 2006 FIFA World Cup. It is named after Fritz Walter, who played for the Kaiserslautern club throughout his career and was captain of the Germany national football team that won the 1954 FIFA World Cup. The Stadium was built on the Betzenberg hill, hence its nickname "Betze", and was opened in 1920.
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The stadium underwent a 76,5 million Euro renovation beginning in 2002 that added a media center, installed a new floodlight system, and increased capacity from 38,500, of which 18,600 were standing, to 48,500, of which 16,363 are standing. The overall size of the solar installation in the Fritz Walter World Cup Stadium project is 1.35MWp and was completed in three phases. It will be able to generate 1,156 kWhr of electricity per year and can
Lite-On is one of the few leading companies that can provide a full range of Green Technology products, including high-performance power supplies, inverters, LED backlight, general and commercial LED lighting, LED street lights, thin-film solar cells, etc., to further strengthen Lite-On’s leading position in the global optoelectronics industry.
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GERMANY’S RE TRANSITIONS
AlsterSonne, largest solar-powered ship in the world Title: ALSTERSONNE Location: Hamburg, Germany Ship Category: Harbour & tour boats/restaurant vessels Description: ALSTERSONNE doing another tourist trip, seen from Lombardsbrücke on Binnenalster, Hamburg,
Photo Credit: Jens Boldt (Harbour & tour boats / restaurant vessels) ALSTERSONNE is a solar-powered catamaran known as the argest solar-powered ship in the world. Built in 2000, a passenger boat for 100 persons on the river Alster in Hamburg, Germany. She has an overall length of 25,53 m, beam 5,30 m, height 3,10 m, draught 1,26 m. The solar boats is an electrical, with independent, quiet and clean engines, whose batteries store free energy from the sun. ATG owns the solar-powered catamaran, Alstersonne. Hamburg is making a good-sized investment in hydrogen and fuel cell infrastructure, using a hydrogen-run Fiat Diablo at the Hamburg Airport with its own hydrogen pump, and running a small fleet of three hydrogen buses in the inner city. The Zero emissions ships–Zemships project aimed to develop and realise the first hydrogen-powered passenger ship (capacity > 100 persons), power-assisted by a 300-600 kW electric motor that gets its electricity from a fuel cell. Its main
advantages over conventional ships would be zero local emissions, low noise, high energy efficiency and no risk of water pollution. The ship advantages are zero air emissions (the hydrogen used for its two 50 kW fuel cells is derived from natural gas, so it is not emissions free in its life-cycle), a quiet engine and less water pollution to the Alster. Germany-based Proton Motor designed the hybrid battery/fuel cell system and purports that it is nearly twice as efficient as a conventional diesel-powered ferry - and definitely cleaner than the coal-fired steamer ferries originally running on the Alster. Atmospheric emissions from ships are a serious environmental problem, particularly in coastal areas and port cities. Notably, sulphur dioxide (SO2) and nitrogen oxide (NOx) emissions are expected to exceed those of all land-based sources in the EU by 2020. Sulfate and nitrate particles along with emissions of primary particles (such as soot and dust) result in fine particles i.e. Pm10
(particles of 10 micrometres or less), PM2.5 (particles of 10 micrometers or less) which can harm human health. The bulk of emissions on inland waterways are generated by medium to large vessels. The use of fuel cells to power those ships in the range of 300 to 600 kW would be a zero emission solution. However, the available fuel cell technology for submarines is too costly and its use in small vessels not suitable to the targeted power requirements. The task for this project was to provide a technical solution that would be scalable to typical power requirements and which could be fully integrated into surface vessels of different sizes. Solar modules on a ship can charge the batteries on the spot cleanly and efficiently with free energy from the sun. Solar electricity plants are reliable and durable.
Solar Powered Electric Bike Rental Stations in Germany Kyocera Corporation supplied its high-performance solar modules for a carport roofing installation in southern Germany which provides power for a charging station for electric cars and bikes. Electric-powered automobiles and bicycles are becoming increasingly popular in Germany as they provide a convenient and eco-friendly method of transportation. As a result, there is a growing need for charging stations to meet increased use. Furthermore, this solar-powered charging station is not only environmentally friendly but also economical; currently, charging at this location is free of charge to the public. The energy used to 'fill the tanks' comes from 248 high-efficiency 215-watt Kyocera solar modules which produce an output of 53.32kW.
in the world to have passed the Long-Term Sequential Test performed by TUV Rheinland Japan Ltd. This solar-powered charging station is just the latest in a long line of projects that Kyocera has been involved in that bring innovative alternative energy solutions to the market. For example, Kyocera solar modules also produce power while providing shade for cars at the Solar Grove™ in San Diego, California. In Japan, Kyocera introduced the Solar Cycle Station for charging electric bicycles; as well as the Eco-Shell co-developed with Sekisui Jushi Corporation — a multi-purpose solar-powered shelter for use in public places where shelters provide cover against the sun and rain such as bus & taxi stops, benches and walkway coverings.
Kyocera modules provide excellent performance and high reliability which is demonstrated by the fact they are the first
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GERMANY’S RE TRANSITIONS
Feldheim, Germany's first community to become energy self-sufficient The roots of Feldheim's energy experiment date back to 1995, when entrepreneur and then-engineering student Michael Raschemann proposed erecting four wind turbines on land owned by the local farming cooperative. The relatively flat and windy landscape proved ideal. In partnership with the renewable energy firm Energiequelle of which Raschemann is a co-founder - Feldheim gradually expanded the wind park to its current size, with 47 turbines. Mr Raschemann founded a company, Energiequelle, which planned and implemented the project. Residents were invited to join a limited company to manage the wind farm in which they contributed 3,000 euros each. The wind farm now has 47 turbines, which produce 175 million kilowatt hours of electricity every year. The town of Feldheim uses just one per cent of that, the rest is sold back into the wider grid. Residents and businesses now pay a third less for their electricity than other German communities, at 16.5 eurocents per kilowatt hour. The biggest local business is the agricultural cooperative which produces milk, pig meat and grains.
The tiny village of Feldheim, some 60 kilometers southwest of Berlin, was catapulted by chance to the forefront of the renewable energy movement. Feldheim is the Germany's first community to become completely energy self-sufficient.Now visitors from around the world are flocking to this otherwise unremarkable rural community to see if they can replicate its success. Behind the street is a field where 43 giant wind turbines. This town of 150 inhabitants, tucked away in the Brandenburg countryside some 60 kilometers (37.2 miles) southwest of Berlin seems like an unlikely tourist hotspot. It has no bars, museums or restaurants. But since the Fukushima nuclear disaster, Feldheim has become a beacon for cities across the world that want to shift their energy mix toward renewables.
Feldheim is the only town in Germany that started its own energy grid and gets all of its electricity and heating through local renewable sources, primarily wind and biogas. This mix of energy self-sufficiency and reliance on renewables attracted 3,000 visitors in 2011. Visitors came from North and South Korea, South America, Canada, Iran, Iraq and Australia. About half of the visitors are from Japan. After the disaster at the Fukushima nuclear power plant, Chancellor Angela Merkel planned a phase-out for Germany's nuclear power plants and set the goal of requiring Germany's energy to come from renewables by 2020. Some experts believe Germany could get 100 percent of its energy from renewable sources by 2050. That might seem like a distant goal - but it's one that's already been achieved in a tiny village in Brandenburg.
After the success of the wind farm, the cooperative, in partnership with Energiequelle, built a biogas plant to use manure and silage to heat the village. The plant cost nearly 2 million euros and much of that was provided by government subsidies. It has cut heating costs and saved the import of 160,000 litres a year. The partnership has also built a solar farm with 10,000 modules, which has an annual output of 3,000 megawatts. The town does not waste a thing, with a small woodchip heating plant burning timber by-products from nearby forests. Mr Gluck said the big energy groups fought against Feldheim's transformation. "The permit process took longer than the actual building process," he said. But that has not deterred the villagers from new projects. They are now spending 13 million euros on battery storage, which will help with consistency of supply
Germany Maintains a Leading Position in Climate Protection Environmental and climate protection have been a high priority in Germany. In the global community, Germany leads the way in climate protection and is a strong pioneer in the development of renewable energy technologies. In 2014, Germany succeeded in reducing its emissions by 27 percent.
According to report, in 2014, green electricity had a 26 percent share of gross electricity generation, and in the first six months of 2015 it accounted for 32.5 percent of total electricity consumption. On sunny work days, solar PV plants can cover up to 25 percent of electricity demand, on Sundays and public holidays even as much as half.
Germany is also advancing climate cooperation with other countries as regards issues as tropical forest protection and energy efficiency. The country's initiatives is supported by work at universities and institute for Climate Impact Research and the Wuppertal Institute for Climate, Environment and Energy.
Germany's Energy Reform is a major contributor to restructuring the country's energy supply sources away from fossil fuels and nuclear power, towards renewable energies. Germany is leaving the use of fossil and nuclear power as its energy source and has set a target to exit from nuclear power by 2022 with plans to have reduced its emission of carbon dioxide by 40 percent and 80 percent by 2050.
More interesting, 38.7 percent of all new residential buildings are already heated with renewable energies. In 2015, there were 1.5 million solar PV systems installed, generating approximately 38.5 gigawatts in rated power, putting Germany in third place behnid China and the USA in terms of nameplate capacity.
However, the leading industrialised countrys has pledged to speed up termination of the use of fossil fuels as an energy source. Complete "decarbonisation" is intended to be achived before the century is out and Germany is pursuing a strategy of combining economic growth and environmental protection with a view to sustainable economics. In addition to the development of renewable energies, the main contributory factors to this are an increase in the efficient use of energy and resources, and the smart use of regenerative raw materials.
The Energy Reform of Germany seeks not only to minimise risks, but also to enhance climate-compatible energy consumption and high supply security. The dynamic developments of renewable energies has meant an increase in the proportion of carbon dioxide-free energy in the electricity mix.
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With the full support of the Federal Government, Germany is the driving force in European Union, which since the 1992 United Nations summit in Rio de Janeiro has been a pioneer in international climate policy. The country supports the objective of limiting global warming to a maximum of two degrees Celsius.
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GERMANY’S RE TRANSITIONS
Germany to exit from nuclear power by 2022 following the nuclear disaster in Fukushima in Japan, as "a necessary step on the way to an industrial society committed to the idea of sustainability and the preservation of Creation". Furthermore, it is not only the environment and climate that are intended to benefit from the Energy Reform, but the German economy as well - the primary aim being to eliminate reliance on international imports of crudeoil and natural gas. According to report, Germany spends about 80 billion euros annually on the import of coal, oil, and gas. In coming years, this amount will be gradually eliminated by domestic value added in the field of renewable energies; moreover, these measures result in additional export opportunities and the prospect of more jobs. Industry and large business enterprises have already achived significant savings, and standards are high. Small companies and public facilities still have some catching up to do. Improving the energy consumption of old buildings in particular is especially important with regard to increasing energy efficiency, and the Federal Government makes grants available for the purpose. Buildings account for around 40 percent of carbon dioxide emissions.
With the changes to the Energy Reform in Germany, the Federal Government agreed with the German energy companies on an exit from nuclear power by 2022. The resolutions the German Government passed in 2011 follow
in the tradition of restructuring of the energy system to rely on sustainable energy sources. In 2011, the parties represented in the German Bundestag passed with the express approval of a large majority of the population
Both the economy and the labour market are benefitting from the leading role Germany plays in technologies for environmental protection, renewable energies, and the efficient use of resources.
Audi e-gas plant, world's first industrial power-to-gas plant in Germany
Audi opened the e-gas plant in Werlte, Germany, making it the first automobile manufacturer to develop a chain of sustainable energy carriers. It begins with green electricity, water and carbon dioxide. The end products are hydrogen and the synthetic methane: Audi e-gas. The Audi E-gas plant uses electrolysis to split water molecules into oxygen and hydrogen, which will someday power fuel-cell vehicles. For now, methanation is the process used to make the synthetic natural gas. Audi reacts the hydrogen with CO2 to generate renewable synthetic methane. The E-gas can be delivered through existing natural gas pipes since, chemically speaking, it’s nearly identical to natural gas. There could be another reason for building the plant beyond sustainability. New vehicle sales in Europe are experiencing a serious downturn. Analysts also say that global OEMs are
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starting to transform their identities from “automakers” to “mobility companies,” so Audi’s e-gas plant could cover a few strategic agendas. The pilot plant has set a major technical milestone: It is the first power-to-gas plant to utilize biological methanation across Germany. Its strength lies in the fact that it processes the carbon dioxide contained in the raw biogas directly. Unlike chemical methanation, the CO2 does not need to be present in high concentration or purified form. This opens up new procurement paths. Smaller sewage treatment and biogas plants, in which no biogas purification is performed, can now come into consideration as CO2 sources.
drive. At the end of 2016, sales of the new Audi A4 Avant gtron* begin in Europe. This is the second CNG model from Audi after the Audi A3 Sportback g-tron, which has been on the market since the beginning of 2014. Customers can run both g-tron models on gasoline as well as on conventional natural gas, biomethane or the sustainably produced Audi e gas. The Viessmann Group started up its pilot plant in stages beginning in March 2015. Like the Audi e gas plant in Werlte, it consumes tons of CO2 in the production of the synthetic gas.
Thanks to the new partnership, Audi will be able to supply a growing number of customers with sustainably produced egas in the future. Simultaneously, the brand with the four rings is also extending its line-up of models with natural gas
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RENEWABLE ENERGY
German based company, PAN Africa Solar to create 1,000 jobs in Nigeria by 2018
By Obineme Ndubuisi Micheal
German based company, PAN Africa Solar will employ up to 1,000 people for solar jobs in Nigeria as the company is currently developing a 75 megawatts projects with solar PV in Katsina state, fully supported by the State and Federal Government of Nigeria. Marcus Heal, CEO of Pan Africa Solar, made this known to newsmen at a press conference in Abuja. Marcus said during construction of the project, it will be employing thousands of people as it aims to have one million household in Nigeria that will be using its homescale solar units in the next five years. PAN Africa Solar has become the first company to sign the Power Purchase Agreement (PPA) and also the first to obtain the license in Nigeria. He said work is expected to commence on the sites in January/February 2018 and the build programme would be approximately 9 months. The project will be completed within the time of President Muhammad Buhari's administration and the solar project will provide enough power for 1.1 million people in Nigeria. According to Marcus Heal, PAN Africa Solar has a second business scale which is known as PASS B-BOX. It is a home scale pay-as-you-go project where it now have a few hundred units which started 6 months ago. The units have been deployed in Kano and the company have also completed the pilots. He said his company looks to expand its business across the northern region and Nigeria as a whole as the solar systems is a power source for millions of Nigerians living in the rural communities that doesn't have access to the grids where perhaps their income is $1 or $2 usd per day. He adds: "Our company is developing a utility scale business for the people so that they will have access to the grids through its home scale business, pay-as-you-go system". He further explained that the company also have a solar system that provides power for the people for about $7 usd per month so after $30 to $60 dollars of their income, they can only spend $7 dollars a month for power. The solar system can power the lights in the house, radio, USB charger, small TVs plus DSTV and if they have a smartphone, they can plug it into the TV for internet connection.
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“This solar innovation is providing electricity to the people in the nothern region of Nigeria and is taking them away from living in complete darkness which also enables them to have access to internet for education and health prospects," Marcus said. He also said that the company has a solar system that can provide power to the people for about $7 usd per month. So after $30 to $60 dollars of their income, they can only spend $7 dollars a month for power. Investing in Nigeria: PAN Africa Solar is bringing foreign and direct investment to Nigeria through private investors, Solar Nigeria Programme which is known as a DFID organisation, DEG - Deutsche Investitions, and other investment groups. Marcus said the company's utility scale project, received a foreign investment equity. The project is basically $140 Million USD projects which brings in $110 Million USD from the lenders and $30 Million USD of freight equity which is coming from PAN Africa and its joint develop partners, JCN Capital. He adds: "Our company is also working with another group known as Climate Investor One which is also bringing in substantial funding into the projects" Product Quality: Marcus said solar have a bad reputation in Nigeria because people buy solar panels and inverters but after one to two years, the inverter will experience some technical problems which will make the customer to be unable to use the solar panels again. This is a very terrible situation. "As part of our company’s top priority, PAN Africa Solar is keen to developing an affordable and quality solar systems for electricity generation in Nigeria through connecting a single unit to an household and the customers pay $7 USD per month for the maintenance of the solar system. Basically, the customers are paying the $7 to maintain the life span of the solar system," Marcus said
Product Price The price of its standard PASS B-BOX is usually charged in Naira from N2,600 to N3,850 per month. The product is a 50 watts system and it doesn't work for the urban people because they use generators to power most of their electrical systems in their homes. Marcus Heal further explained that the solar systems works for millions of people living in the rural areas where there aren't roads and cannot be seen in Google maps. He adds: "Our company's technicians go into this rural communities by providing electricity to the people and this is the first time that they have been served with electricity as they will no longer go far away to buy touch lights and charge their phones. It is a marvelous thing that our company is doing for the people living in the rural communities" PAN Africa Group is working closely with the Rural Electrification Agency (REA) in order to achieve its strategic growth plan as they have huge interest to provide solar system to the entire northern part of Nigeria. The company also have a team of sales agent both male and female given the mandate to go around the communities to sensitize the people on how they can use the solar system more effective and efficiently. Marcus said one of the main core of PAN Africa's business is to provide power to customers through monthly subscription which is a warranty for the company to keep maintaining the solar system. If the system have any technical problems, PAN Africa takes responsibility to fix the problems at no cost. He said, "PAN Africa Solar have the ambition to build a reprocessing plant for solar batteries in Nigeria. The batteries will be reprocessed in-country and it will create more job opportunities in Nigeria".
Customer service: PAN AFRICA has a call center in Abuja which the customers can contact if anything goes wrong on the system and the company’s technicians usually respond promptly to resolve the problems.
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ALTERNATIVE ENERGY
Sierra Leone Parliament Ratifies Bumbuna II Hydropower Project Hydropower, will be responsible for building, owning and operating Bumbuna II and will also be responsible for operating Bumbuna I. Commenting on this announcement, Patrick Beckley, Chairman of Seli Hydropower, said: “We would like to thank the Government of Sierra Leone for their ongoing support and in maintaining their commitment to the Bumbuna II project ahead of General Elections in early 2018. I am delighted that we received approval for ratification in Parliament with no exemptions – a clear indication that there is unanimous cross-party support for this project.” “The development of Bumbuna II has always been a key part of the country’s long-term energy strategy and we look forward to being able to deliver affordable, all-year round power for the consumers of Sierra Leone.” Andrew Cavaghan, Joule Africa’s Chairman and a Director of Seli Hydropower, added:
Following on from the Government of Sierra Leone’s signing of the 25-year Power Purchase and Implementation Agreements with Joule Africa in August 2017, these important project documents have now been ratified by the Sierra Leone Parliament. This marks another important milestone in the development of the Bumbuna II hydropower project which, when completed, will provide much-needed all-year round power to Sierra Leone.
Under the conditions of the agreement, local project company Seli Hydropower, jointly owned by Joule Africa and its local partner Energy Services Company (ESCO), will build an extension to the existing 50 MW hydro station, Bumbuna I, situated in the north east of the country, adding a further 143 MW of power capacity. Construction on the extension is anticipated to start in the second half of 2018 with operations forecast to start four years later. Seli
“I am pleased that we have reached another important milestone in the development of the Bumbuna II project. We are making good progress on all fronts and will look to build on this momentum in the coming weeks and months as we continue to consult with interested parties, appoint a contractor and finalise the relevant financing.”
BBOXX launches its solar home systems in Togo BBOXX customers will be able to pay for their solar system usage in a “pay-as-you-go” fashion, using mobile payments solutions such as TMoney or Flooz. They will also have access to BBOXX’s proactive customer service, which through remote monitoring solves issues such as battery depletion before they become a problem for customers. The Hon. Marc Dèdèriwè Abli-Bidamon, Minister of Energy and Mines, said: “The CIZO Initiative aims to significantly increase the electrification rate in rural areas of Togo by 2022 through the use of solar home systems. “The commercialization of solar systems through the participation of private actors will accelerate the impact on the Togolese economy. Against this backdrop, the government is creating the right environment to foster and enable private actors to operate efficiently.” Mansoor Hamayun, Chief Executive Officer of BBOXX, said: “We have made an excellent start towards our target of deploying 300,000 systems in Togo by 2022. We have proven we can set the right foundations under a very tight time schedule and we are now ready to scale up our operations. We’ve benefitted enormously from the Government’s support to create the right framework to operate effectively and help improve the quality of life of rural communities in Togo. H.E. President Faure Gnassingbé, President of the Republic of Togo (left) and Mansoor Hamayun, CEO of BBOXX (right)
The Government of Togo’s “CIZO” initiative has made a significant stride forward as BBOXX, a new generation utility which provides reliable energy access to communities with its solar home systems, has launched its operations in Togo. H.E. President Faure Gnassingbé, President of the Republic of Togo, visited one of BBOXX’s first customers in the rural town of Awagomè, to mark the start of the company’s roll out of its smart solar home systems. Following a tender process, BBOXX was awarded a contract to work with the Government of Togo to roll out 300,000 of its solar home systems in the country by 2022. The company has already imported its products and will begin selling its systems in people’s homes immediately, with an initial target of installing 10,000 in the next 12 months.
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The innovative partnership is part of the Government’s aim to dramatically improve access to electricity for people in Togo, particularly in rural areas. The mission of “CIZO” (which means lighting up in “Guin” language) is to bring electricity to more than 2 million citizens by 2022. It will also provide the adoption of mobile payment solutions across rural areas, helping to improve the financial inclusion of rural communities. BBOXX will work with La Poste, the largest distribution network in the country, to sell and distribute its solar home systems and other small electrical goods, such as televisions and radios. BBOXX will also be opening shops within La Poste’s locations. BBOXX’s operations in Togo, a financial hub in West Africa, have been in part financed by capital raised via Union Togolaise de Banque, a local bank.
“Raising capital locally through Union Togolaise de Banque has made financial matters more straightforward for us and will boost our expansion across the country. We aim to create more than 1,000 direct jobs in Togo in the next five years from our activities.” “We are already providing our services and the on-grid experience they bring to customers in Togo and are looking forward to working in partnership with La Poste to reach many more in the next months.” BBOXX is making significant progress in Africa – Togo is the latest country in which it has a footprint and builds on its operations in Kenya, Rwanda, Nigeria and Cameroon. The company has so far deployed 150,000 of its systems, improving the lives of more than half a million people in 35 countries, providing reliable electricity for lights, smart phones and home appliances to off-grid rural communities.
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LNG WORLD
NLNG announces new milestone towards achieving FID on its Train 7 Plus project By Ayobami Adedinni
Nigeria LNG Limited is a liquefied natural gasproducing company and a liquefied natural gas plant on Bonny Island, Nigeria. NLNG has been a success story since incorporation in 1989, established to harness Nigeria's vast natural gas resources and produce Liquefied Natural Gas (LNG)
Nigeria LNG Limited, announced at the World LNG Summit in Portugal, that the company, with the full support of its Board, is making steady progress towards achieving Final Investment Decision (FID) on its Train 7 Plus (7+) project during 2018. In a statement signed by the General Manager, External Relations, Kudo Eresia-Eke, the company said this phase’s strategic growth programme will on completion upscale NLNG’s annual production capacity from the current capacity of 22 mtpa to 30 mtpa. Speaking at the Summit, Tony Attah, Managing Director and Chief Executive Officer of Nigeria LNG Limited said, “With Nigeria’s proven reserves of about 192 trillion cubic feet of natural gas, and another 600 trillion cubic feet in potential, this milestone development is coming at a crucial time. “I am excited about this development which would not be possible without the support of our Board and shareholders, the shared vision within our company of helping to build a better Nigeria; our core values of Integrity, Teamwork, Respect, Excellence and Caring; the commitment of our staff; and the cooperation from Governmentand other stakeholders including our loyal customers. “This milestone would symbolise many things. We have consistently shown the world that NLNG is a world-class company, operating out of a globally strategic country, safely and reliably delivering clean energy to its customers. Secondly, and most importantly for Nigeria, it shows that it is time for gas; This is the time to unleash the country’s gas potentials through catalysts like Trains 7 Plus to spur socio economic transformation.
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“NLNG remains a success and we are determined to sustain our status as an inspiration to Nigeria. The company has generated $90 billion in revenues as well as paid $5.5 billion in taxes to the government. The company has also has helped monetise the country’s gas resources and significantly contributed to reducing gas flaring from 65% to less than 20%,” he remarked. NLNG runs an integrated plant on Bonny Island where its current six liquefaction trains share common facilities including storage tanks, shipping capacity and loading jetties with a gas intake of 3.5 billion standard cubic feet of natural gas per day. The company has so far converted over five trillion cubic feet of associated gas, which otherwise would have been flared, to liquefied natural gas (LNG) and natural gas liquids (NGLs) for both export and domestic use. It is Nigeria’s most significant natural gas utilization intervention to date,which is helping to preserve the environment and support Nigeria’s economic growth. From an initial investment of about $6 billion, NLNG has grown into a $15.6 billion investment with an asset base of about $11billion.
homes and businesses. This intervention continues as part of strategies and initiatives. All these have beenachieved with a management staff entirely made up of Nigerians and a workforce which is 95% indigenous. Through its social investment programmeon which some $200 million has so far been spent, NLNG is helping to improve lives in its immediate environment on Bonny Island and elsewhere across Nigeria. The company recently flagged off a road project in collaboration with the Nigerian Government to construct a $392 million 34 kilometreroad which will connect several communities in the mainland of Nigeria’s Niger-Delta region to Bonny Island, which was hitherto only accessible by sea. The project was formally flagged off by Nigeria’s Vice President, Professor Yemi Osinbajo, and is the biggest CSR initiative ever by a private company in the country.
At a stage in its transition from a 2 (two) train facility to its current 6 (six) train structure, the NLNG facility was recognised as one of the fastest growing such projectsin the LNG world as well as supplier of about 13% of global market supply.
Furthermore, NLNG has also recently signed a Memorandum of Understanding with Bonny Kingdom for the economic development of the Kingdom over a 25-year period. In that MOU, NLNG committed N3 billion per annum, cumulatively more than $245 million in 25 years to the Bonny community. This will also increase the number of direct and indirect jobs and improve the quality of life on the island.
Currently, NLNG is serviced by a committed fleet of23 LNG vessels which is the largest fleet in the sub-region. This is inclusive of six new vessels, constructed in South Korea and delivered between2015 and 2016 as replacements for sixmaturing vessels within its operations inventory.
NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49 per cent), Shell Gas B.V. (25.6 per cent), Total Gaz Electricite Holdings France (15 per cent), and Eni International N.A. N. V. S.àr. l (10.4 per cent).
In addition, NLNG has contributed significantly to the domestic LPG industry, supplying some 40% of cooking gas to Nigerian
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INDUSTRY NEWS
ENGIE acquires South African energy services companies, Thermaire Investments and Ampair ENGIE has reached an agreement with two South African energy services companies, Thermaire Investments (Pty) Ltd and Ampair (Pty) Ltd to acquire 100% of their respective shares. Together, both companies employ more than 500 people across South Africa, Botswana and Mozambique, and are major players in the HVAC installation and service segment in their respective markets. Jointly, the acquired companies will form the largest South African HVAC contractor with a strong capacity to export its skills cross-border and into the greater Southern African region. “We are proud of this first step in the business to business market and excited about jointly exploring further opportunities in the region,” says Mohamed Hoosen CEO of ENGIE Southern Africa. As a global energy company and expert operator in Renewables and Energy Storage, Lighting, Heating and Cooling Systems, and Energy Management and Controls, ENGIE is embarking on an acquisition strategy to grow its presence in the African market. JP Hargovan, CEO of Thermaire Investments adds: “As one of the oldest established HVAC businesses in Southern Africa, we are thrilled at the prospect of developing and growing our business in line with the greater ENGIE strategy.” Thermaire Investments and Ampair are affiliated companies often working together to offer clients supply, installation and maintenance services within the HVAC industry. They have built strong partnerships with customers in a large variety of activities including power plants, commercial buildings, shopping malls and data centres. Bob Forbes, CEO of Ampair says: “Ampair is ecstatic at the opportunity to work hand in hand with ENGIE and believes that the value add from the ENGIE company will summersault Ampair into another league. This, coupled with the new technology being developed within the existing Ampair Group will
Jointly, the acquired companies will form the largest South African HVAC contractor with a strong capacity to export its skills cross-bordern and into the greater Southern African region
benefit our existing client base and any new clients that will be introduced by ENGIE going forward. Furthermore, ENGIE will bring stability to Ampair at a time when Ampair is experiencing in excess of 30% growth based on the employment of top end engineers and technicians.” ENGIE activities in South Africa are currently concentrated on centralised generation assets. This success comes after commissioning of the 670 MW Avon Peaking Power, 335 MW Dedisa Peaking Power, 94 MW Aurora Wind Power and the
combined 21 MW Aurora-Rietvlei Solar Power and Vredendal Solar Power Park (Photovoltaics), as well as the ongoing construction of the 100 MW Kathu Solar Park (Concentrated Solar Power). With Thermaire and Ampair, ENGIE aims to develop a regional platform to offer energy services to the public, industrial and commercial building sectors. Completion of the transaction is conditional on approvals of the relevant regulatory bodies.
GE completes South Africa’s Medupi Power Station Unit 4, Eskom issues Final Acceptance Certificate General Electric Steam Power Systems received a Final Acceptance Certificate from Eskom for the successful testing and transitioning of Medupi Power Station Unit 4. GE’s commitment to work with the customer will bring the country’s government closer to realizing its energy supply goals. Upon completion, the power station will produce a total of 4800MW and will be sufficient to meet the electricity needs of 3.5 million households in the country. This is a major milestone for GE and our customer Eskom as Unit 4 will be the third unit out of six units to be transferred to commercial operation marking the half way point of completing the project. Once completed in 2020, Medupi will be the fourth-largest coal-fired power plant in the world and the largest in Africa. GE’s scope includes 6 full EPC turbine islands, air cooled Condensers and overall project & construction management.
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“Our team has been working with Eskom on the Medupi Power Plant since 2007 and our collaboration has achieved significant progress with more than just power supply in South Africa. We have invested over 1 billion rands to empower local businesses and trained over 300 students on technical and engineering skills” says Douglas Beigley Project Director, Medupi Power station. Enterprise and Supplier development is a critical pillar of the country’s Broad Based Economic Empowerment and it speaks to the true empowerment of sustainable business in South Africa. This investment solidifies GE’s long-term commitment to the country’s national development plan. Medupi is a shining example of how Africa’s power generation needs can be solved through successful public private sector collaboration.
Our collaboration with Eskom goes beyond the building, engineering and construction of the Medupi plant. GE’s total plant management solutions portfolio demonstrates our strength as a single service provider that understands the full plant-as-a-system impact for installation, maintenance, repair and upgrade activities and our excellent services capabilities enables us to optimize the performance and long-term value of the steam power plant to ensure high efficiency for the units throughout the plant’s life cycle.
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INDUSTRY NEWS
How Nigeria can benefit from OPEC’s production exemption - Kachikwu By Ayobami Adedinni
The meeting also took note of Nigeria and Libya’s incremental production and noted their special circumstances while agreeing to maintain their exemption from the production quota. Nigeria and Libya committed to join the production reduction agreement once they are able to produce collectively a volume of 2.8 million barrels per day with Nigeria put at 1.8 million barrels per day and Libya, 1 million barrels per day. The minister said he will continue to push upstream operating companies in Nigeria to reduce production cost per barrel to ensure full advantage of the benefit and value for Nigeria. Kachikwu also welcomed the outcome of the meeting and pledged Nigeria’s commitment to meeting its obligation towards producing 1.8 million barrels per day less condensate output which is not factored into the OPEC quota calculation.
Honourable Minister of State, Petroleum Resources, Dr. Ibe Kachikwu Nigeria’s Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has explained how Nigeria can maximise its current exemption from the oil output cuts of the Organisation of the Petroleum Exporting Countries, OPEC, aimed at shoring up and stabilising prices. In a statement made available by the Ministry of Petroleum Resources at the weekend, Dr. Kachikwu said there is the need for the country to reduce production cost per barrel for Nigeria to benefit from the exemption.
“…for Nigeria to benefit maximally from the current production exemption and to encourage and improve upstream investment, the need for the country to reduce its production cost per barrel is imperative.” The 173rd meeting of OPEC held in Vienna, Austria, agreed to extend its current production cuts agreement entered with participating Non-OPEC oil producers for another 9 months, and the Declaration of Cooperation amended to take effect for the whole year of 2018 from January to December 2018.
Recently, the minister, has also announced the launch of the inaugural Nigeria International Petroleum Summit (NIPS) taking place on 19th to 23rd February 2018 at the International Convention Centre, Abuja, Nigeria. Key Nigerian political decision makers, government officials and industry's specialists from the National Oil Company (NOC) and other relevant government bodies on the one part and Chief Executive Officers (CEOs) of National and international oil companies, multinationals and multilateral organizations, the academia and other relevant stakeholders from the global energy industry will convene in Abuja for five days of content, thought leadership, networking and deal making. This high-level participation is due, in particular, to the superlative quality of speakers, sponsors and partners, all of whom are interested to explore Nigeria's oil and gas industry. Now in its 1st year, NIPS features speakers from the government, corporate and private sphere to share winning strategies and solutions being deployed to face the future of the energy industry with confidence. NIPS is organized by Messrs Brevity Anderson Consortium. The event organizer has invited private sector players to attend and make the most of the opportunity to access and do business with the key industry stakeholders in Nigeria and the African region. They will shed more light on new opportunities as frontier and emerging markets, elaborate on the increased attractiveness achieved and investment opportunities in region.
Hungarian Government to buy Nigerian Crude Oil and LNG
will expire by 2022. Nevertheless, we have what is called “spot cargoes”, when there is excess production, and the current contractors have gotten there share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” Dr. Baru averred.
The Hungarian Government has indicated interest to buy crude oil and Liquefied Natural Gas (LNG) from Nigeria.
He said Hungarian companies could submit their profile to NLNG for possible engagement as off-takers of spotcargoes after meeting the standard requirements.
The Hungarian Ambassador to Nigeria, Professor Gabor Ternak, who disclosed this during a courtesy call on the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, in Abuja, said the decision to import crude oil and LNG from Nigeria was informed by the need to bridge the current supply gap being experienced in Hungary. “Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria,” Ambassador Ternak stated. He said the Nigerian crude oil would be of great help to Hungarian Refineries involved in large scale commercial refining. The Hungarian envoy stated that Nigeria could also leverage on the bi-lateral relationship with his country by engaging the services of Hungarian firms that specialize in repairs, maintenance and building of refineries as well as medical services. He said that Hungarian universities with many years of oil and gas engineering expertise, could assist Nigeria in the areas of capacity building of oil workers. In his remarks, the NNPC GMD, Dr. Maikanti Baru, stated that the Corporation had commenced tendering process for the
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The NNPC GMD stated that works on refurbishment of the Corporation’s refineries through original builders of the plants had commenced and that the Hungarian firms with requisite expertise could be considered through subcontracting by the main contractors. selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilize the opportunity by participating in the exercise to maximize value from direct purchase, rather than going through a third party. “If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers,” The GMD averred. He explained that Hungary could purchase LNG through “spot cargo,” an arrangement in which excess production is given to registered off-takers with the Nigerian Liquified Natuaral Gas Limited (LNNG). “Normally, gas business is a long term business and NLNG is not different, we already have existing 20-year contract that
He said that NNPC through its subsidiary institution, the Nigerian Leadership Academy (NLA), would look into possible areas of collaboration with the Hungarian Universities for in-country capacity building of oil and gas workers. As part of the Corporation’s diversification plans, Dr. Baru said the NNPC, which has the largest medical facilities in the country from a single entity, was trying to put its 52 clinics across the country into commercial use, starting with its clinic in Abuja. He said NNPC would collaborate with Hungarian and other reputable companies that have proven capabilities to set-up world-class medical facilities for heart, spinal and brain surgeries as well as physiotherapy and specialized laboratories services that can compete globally and save Nigerians the burden of traveling abroad for treatment.
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INDUSTRY NEWS
Damen Pioneers Shipbuilding and Vessel Supply for the Maritime Industry in Africa By Obineme Ndubuisi Micheal
Damen offers a wide range of products, including tugs, workboats, naval and patrol vessels, high speed craft, cargo vessels, dredgers, vessels for the offshore industry, ferries, pontoons and superyachts. For nearly all vessel types Damen offers a broad range of services, including maintenance, spare parts delivery, training and the transfer of (shipbuilding) know-how. Damen also offers a variety of marine components, such as nozzles, rudders, anchors, anchor chains and steel works. Damen vessels are based on thorough R&D and proven technology.
Damen is an international shipyard group, operating 33 shipbuilding and repair yards with 9,000 employees worldwide. The company has delivered over 6,000 vessels in more than 100 countries and delivers some 180 vessels annually to clients worldwide.
Damen has also supplied four of its SPa 1605 ballistic protected security patrol vessels to C&I Leasing Plc, a leading player in the Nigerian offshore support vessel market. The patrol boats is used to provide security patrol and escort services for LNG tankers calling in and out of the Nigerian LNG Bonny terminal.
Damen operates in the Africa's Maritime Industry starting from Nigeria, South Africa, Ivory Coast, Angola and beyond. The company is playing a major role to improve, innovate and invest in the region. Based on its unique, standardised ship-design concept, Damen has received certification from Lloyd’s Register Quality Assurance (LRQA) for aligning its quality and safety management systems with internationally recognized standards.
In previous years, Damen Shipyards Group signed a contract with Société de Transport Lagunaire (STL) to build sixteen shallow-draft passenger ferries for Ivory Coast. The contract represents part of a forward-thinking presidential plan that strives to reduce urban congestion and greenhouse gas emissions in Abidjan. The first four ferries was delivered in January 2017 and the rest will be delivered four at a time, every 8 weeks, in three batches.
Recently, Damen Shipyards Galati manufactured a Fishery Research Vessel (FRV) 7417 for the Angolan Ministry of Fisheries. The sponsor of the vessel, named Baía Farta, was Dra. Isabel Cristóvão, director of Gabinete de Estudos, Planeamento e Estatística. The Ministry is a long-standing client of Damen, having previously taken delivery of two 62-metre Fishery Inspection Vessels 6210 and a smaller FRV 2808. This new vessel boasts a number of state-of-the-art features. The FRV has Silent A/F/R Class notation. Close attention is being paid to the design, construction and outfitting of the vessel in order to minimise noise and vibration both on board and underwater. The FRV 7417 is suited to various purposes, including hydrographic operations, acoustics research, pelagic and demersal trawling, plankton, water, environmental and geographical sampling, oil recovery and emergency towing operations. Friso Visser, Damen Regional Director Africa, said: “This vessel represents the future of fishery research, featuring cutting-edge technologies to make operations both sustainable and comfortable. She will enable the Angolan Fisheries Ministry to carry out research into its fishing grounds that will help to develop and preserve the nation’s industry and environment.”
Just over a year after it took delivery of two FCS 3307 Patrol vessels, Homeland Integrated Offshore Services Limited of Nigeria ordered one more of the same class with an option on a second, to be named Guardian 3 and Guardian 4. The two vessels are being supplied as a turnkey solution. The Damen Group is taking care of delivery and crew training, as well as the design and build. Damen’s Local Service Hub in Port Harcourt, Nigeria, ensures that maintenance, repairs and any additional support is handled by Damen engineers. In addition to ship design and shipbuilding, Damen has a worldwide network of 16 repair and conversion yards with dry docks ranging up to 420 x 80 metres. Conversion projects range from adapting vessels to today’s requirements and regulations to the complete conversion of large offshore structures. Damen completes around 1,500 repair and maintenance jobs annually.
News in Pictures
Damen Fishery Research Vessel (FRV) 7417
Damen Shoalbuster 3009 multi-purpose workboats
Baía Farta features a basic design from Skipsteknisk. Her construction has been an international project, involving input from Damen Shipyards Gorinchem and Damen Schelde Naval Shipbuilding in the Netherlands, with building taking place at Damen Shipyards Galati in Romania.
Damen passenger and vehicle ferry, contains 2,000 persons
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Damen SPa 1605ballistic protected security patrol vessels
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INDUSTRY NEWS
Dutch Consortium Launches JIP to Study Autonomous Shipping A Dutch consortium of nearly 20 partners has launched a Joint Industry Project (JIP) to study and demonstrate the technical possibilities for autonomous shipping. The announcement was made in the framework of the Smart Shipping Challenge 2017, which started on November 30, the two-year applied research programme is expected to help reduce operating costs and improve safety and sustainability in shipping, and lead to a roadmap for the introduction of autonomy in the sector. Autonomous Shipping is a Joint Industry Project (JIP) that brings together a Dutch consortium of maritime businesses, knowledge & educational institutions, service providers, and governments in a two-year applied research programme. As explained, the project will look at ways to deploy existing technical solutions in autonomous shipping applications. These solutions will be demonstrated both in simulators and in practice. The study will start with an exploration and analysis of possible applications. Next, it will look at the requirements for safe navigation in shipping environments – autonomous vessels will have to make the right decisions even in case of malfunctions or heavy traffic. This will be tested by means of simulations and various demonstrations, both in the office environment and on board actual vessels, according to the Netherlands Maritime Technology. The Delft University of Technology, MARIN and the Netherlands Organisation for Applied Scientific Research (TNO) are all contributing their expertise to this applied research for autonomous vessels. This is done in cooperation with industrial partners, the Dutch Ministry of Infrastructure and Water Management, the Dutch Ministry of Defence, a classification society, the Dutch pilot sector, and the educational institutes Maritime Institute Willem Barentsz, the Shipping and Transport College and Rotterdam Mainport Institute.
Nearly 20 partners launched a Joint Industry Project (JIP) that brings together a Dutch consortium of Maritime Industry Players. The project will examine whether it is possible to use existing techniques to mitigate or resolve malfunctions issues in the the shore. Services and DEKC Maritime,” explains Sanne de Vleeschhouwer, project coordinator at Netherlands Maritime Technology. “It will give the partners insight into the current state of affairs as well as an understanding of the knowledge, skills and technology needed to achieve full autonomy. This will allow them to direct and implement their developments and solutions, each from their own different perspective.”
The Netherlands as the country of Europe for inland shipping and recreational sailing invests a lot in the use of the waterway network. The Smart Shipping Challenge 2017 (in short: SMASH!), make use of the knowledge and experiences of existing initiatives, technologies, knowledge institutes and various market players.
This joint project will bring together both large and small businesses, such as Damen Shipyards, SeaZip Offshore
Aker Solutions to help Statoil develop the Johan Castberg field, offshore Norway Aker Solutions won key work to help Statoil develop the Johan Castberg field, the largest oil discovery in the Norwegian Barents Sea.
Aker Solutions Chief Executive Officer Luis Araujo. “The field is critical in further developing northern Norway as an oil and gas region.”
The company will supply the subsea production system and design the topside of the floating production, storage and offloading (FPSO) facility, which will be the largestever of its kind offshore Norway. The total value of the work is about NOK 4 billion and will be booked in the fourth-quarter orders.
Subsea System The subsea production system will consist of 30 wells with vertical subsea trees, wellheads, control systems, 10 templates and manifolds, two satellite structures and tooling. The system was ordered by Statoil as part of a framework agreement awarded today.
Aker Solutions has been directly involved in the Johan Castberg development since its earliest phases, providing concept studies and front-end engineering design that have helped drive down costs and make the Arctic project even more viable.
Work on the system will start this month and involve facilities in Norway, the UK, India, Malaysia and Brazil. Initial deliveries are scheduled for the second quarter of 2019 with final delivery in the first half of 2023.
“Our early involvement and strong collaboration with Statoil have helped halve the development costs, enabling this strategically important project to move forward,” said
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exercised an option in a 2013 engineering contract for Johan Castberg. The work has already started and will be carried out by Aker Solutions in Norway and India. The detailed design is set to be completed in 2019. “We are able to generate significant project synergies by building on our work from the early stages of the development and playing on our combined strengths in both subsea and floating installations to optimize the overall solution,” said Araujo.
Topside Design The FPSO agreement covers engineering, procurement and management assistance for the detailed design of the Johan Castberg topside. The order comes after Statoil
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INDUSTRY NEWS
Canada to host North America’s largest energy event, Global Petroleum Show 2018 Global Petroleum Show (GPS) is the most important energy event in North America attracting more than 50,000 international and domestic oil & gas executives from over 20,000 companies, high-level government officials, National and International Oil Companies (NOC’s & IOC’s), thought leaders and influencers from than 115 countries around the world. GPS 2018 celebrates its 50th anniversary, June 12 – 14, 2018, and will feature special events and host some of the world’s top leaders and decision makers in government and industry. For 50 years, GPS has been the premier international meeting place for the industry to introduce new technologies, share ideas, meet new prospects, and do business together. Over this period, the energy industry has gone through significant transformation globally and will continue to evolve. The energy industry will remain a global economic growth driver with GPS playing an integral part in the sector’s development and advancement. The show provides a platform for all industry players to share new technologies, develop strategies for oil & gas, renewables, and introduce new energy sources not yet discovered. Learnings, new advancements, and technologies have been driving the evolution of the industry and in 2018, GPS will launch a full technical conference to provide a high-level platform to share and discuss these innovations. With over 250 technical focus areas to choose from, professionals from all fields will have the opportunity to speak on the program. The Technical Committee, comprising of international experts will be responsible for conducting a peer-reviewed assessment of the submitted abstracts to develop a comprehensive technical program. The GPS Awards were created to shine a spotlight on excellence and promote healthy advancement within the industry. Not only do the Awards promote innovation, its an opportunity for companies to gain global exposure. GPS 2018, the meeting place for global energy in North America, provides you with the ideal platform to showcase your brand, latest products, services and technology to over 50,000 visitors from 115 countries. The world convenes at Global Petroleum Show which connects investors and buyers looking to do business in an ever-changing dynamic energy market.
www.globalpetroleumshow.com key players from more than 10 NOC’s and 30 IOC’s and various International Pavilions (such as US, Mexico, China, Kuwait, Korea) attend Global Petroleum Show. Companies are represented at GPS – gain an advantage in the marketplace by showcasing new technologies, products & services in one of the relevant technology zones at the event. The energy industry will remain a global economic growth driver with GPS playing an integral part in the sector’s development and advancement. GPS provides a platform for all industry players to share new technologies, develop strategies for oil & gas, renewables, and introduce new energy sources not yet discovered.
Rotterdam Port Sets Dues for Three Years The port dues for the port of Rotterdam have been set for the coming three years. The port dues will rise by 1 per cent per year for the next three years.
This means the difference between port dues charged on crude and, for example, those charged on mineral oil products will be further reduced.
Over the recent period, fixing the development of port dues for three years has provided the market with a lot of clarity. It is for this reason that, after constructive talks, the Port of Rotterdam Authority, Deltalinqs, VRC and VNPI have again decided upon a multi-year agreement.
The inland shipping dues will rise by 1% per year for the next three years. In addition, the Port of Rotterdam Authority is going to update the system over this period in order to make it easier to use.
Rotterdam is using this conservative rate of increase in port dues to increase its competitive position among the surrounding sea ports. The Port Authority has adopted these specific measures to strengthen Rotterdam’s position as a container hub. Over the coming years, the port dues for tankers carrying crude oil will again be set at 1.5% below the overall increase, as was the case in the preceding period.
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Port dues are just one of the Port Authority’s sources of income and they are charged to the shipping companies that use Rotterdam. In 2016, the Port Authority received € 295 million in sea port dues and €14 million in inland port dues. The other main source of income for the Port Authority, at €349 million, comes from the rental and long-term leases of sites.
The Port Authority, Deltalinqs and VNPI have fixed rules on how the port dues rate is set each year. Through structured market consultation, the sector is meeting the government’s desire for self-regulation of the port dues. Among other things, this consultation takes inflation, market conditions and economic development into account. The port dues apply to the sea ports of Rotterdam, Schiedam, Vlaardingen, Maassluis, Dordrecht and Moerdijk.
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