• Thursday, June 13, 2024
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We will support FG’s efforts in energy transition, safety in downstream operations – Oil Marketers

We will support FG’s efforts in energy transition, safety in downstream operations – Oil Marketers

The Major Oil Marketers Association of Nigeria (MOMAN) has reiterated its support to Nigeria’s energy transition and efforts of the Federal Government to actualise its net zero carbon emission target by 2060.

MOMAN also said it had within the last one year organised several trainings for its members to improve efficiency and safety in the petroleum downstream sector operations.

Olumide Adeosun, made these known in a news briefing to mark his first year anniversary as the chairman of the association on Friday in Lagos.

Adeosun said: “our members are committed to the energy transition and the sustainable decarbonisation of our respective businesses.

“As a collective, we have embarked on several impactful initiatives and projects that signals that commitment to cleaner energy.”

According to him, MOMAN has been engaging with the National Gas Expansion Programme (NGEP) to drive the expansion of the use of gas in Nigeria.

He said the association had recently reviewed the contents of the Federal Government’s Auto Gas policy and have sent in a memorandum with the association’s input to the policy.

“My members are ready to move as long there is regulatory and policy clarity,” he said.

Adeosun, who is also the Chief Executive of Ardova Plc, said as part of these efforts, the company had invested in the construction of a 20,000MT Liquefied Petroleum Gas (LPG) storage facility in Ijora, Lagos.

He said this new capacity which would come on stream in 2023 would enable economies of scale for coastal gas delivery and help deepen the adoption of LPG as the cooking fuel of choice nationwide.

Adeosun also reiterated MOMAN’s position for the petroleum downstream sector going forward, especially with regards to the continued payment of fuel subsidy by the government.

He said: “We have tabled our recommendations to the government on our considered view on subsidy removal approach.

“It can best be summarised as full deregulation in phases. These huge subsidy payments are simply not sustainable.

“The Government should focus on palliatives for Nigerians such as mass transit, improve power supply, agriculture, education etc.

“Government may subsidise sectors that would stimulate sustainable economic growth.

“Overwhelmingly the right course of action is a clear trajectory towards full implementation of the Petroleum Industry Act 2021 as it is a very well thought out legislation that would ultimately cause the petroleum industry in Nigeria to grow.”

Read also: Nigeria’s energy transition plan will attract fresh investment for indigenous firms- Tombomieye

Listing some of the achievements of his administration in the past one year, Adeosun said it included engagements with stakeholders such as the Ministry of Petroleum Resources, the National Assembly and the Federal Competition and Consumer Protection Commission.

He said MOMAN had also engaged the

Nigerian Midstream and Downstream Petroleum Regulatory Authority, Dangote Refinery and the Nigerian National Petroleum Company Limited and the media.

“These engagements have all been in a bid to ensure that downstream positions and our customers’ interests are well articulated and documented.

“The goal has always been to develop good working relationships with the regulator and positively impact the petroleum sector,” Adeosun said.

The MOMAN chairman said members companies, being the heritage of International Oil Companies (IOCs) who have operated in Nigeria in some cases for over 100 years, were the custodians of years of operational experience and evolved industry competencies.

He said: “It was our opinion that under investment arising from years of operation under the subsidy regime has led to a degradation of equipment, industry knowledge and practices.

“In response, MOMAN established regional collaborations with other industry associations across Africa. We share best practices and collaborate on various fronts

“We have therefore pooled our resources and recently published compendiums of best practices for the downstream industry in Nigeria” he concluded.”