… proposes “Commonwealth Solution” modelled after NLNG
Oredola Adeola
Engr. Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), has advocated for the privatization of Nigeria’s oil and gas pipelines, proposing a “commonwealth solution” that would allow private investors to hold 51% ownership, with oil producers such as NNPC Ltd. and IPPG retaining shareholder stakes in the network.
Ogunsanya made the recommendation at the just concluded Nigeria International Pipeline and Security Conference (NIPITECS) organised by the Pipeline Professionals Association of Nigeria (PLAN) in Abuja.
Engr. Ogunsanya while speaking on the theme:’Pipelines – Critical Assets for National Economic Development and Environmental Sustainability’ further explained that the commonwealth solution of privatizing Nigeria’s pipeline network stems from the opportunity the country has for the private investors to hold 51% ownership in the nation’s pipelines with the crude oil and gas producers.
This model, according to him, is not new in Nigeria, adding that it’s the working model that has kept the Nigerian LNG(NLNG) a pride of the industry even when there is more room for improvement in establishing more LNGs’ and an increase of Gas feedstock.
Ogunsanwo said, “All over the world, the life expectancy of populations is highly impacted by energy security, which ensures the availability of and access to healthcare, availability of infrastructure that enhances living standards, affordable food, better housing, and education.
“With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it means that Nigerians lack energy security. It also means that the majority of Nigerians lack all these necessities”.
“For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production to refining to transporting and to the downstream. Doing this with in-country capacity will guarantee Nigeria as one of the top 20 economies in the world”, he declared.
The PETAN Chairman further expressed regret that Nigeria failed to use the proceeds of its crude oil sales over the decades to build the country.
He, however, commended indigenous companies making up professional associations like PETAN and PLAN for helping to build capacities and creating jobs in a local content drive that has multiplier effects and yields results along the value chain of the industry and the regional economy.
Ogunsanya further mentioned that PLAN, representing the “lynchpin” of the oil and gas industry without which the resources wouldn’t be effectively transported to where they are needed, be it refineries or gas plants and further to power plants, cannot be overlooked in the development of oil and gas and there is a lot to do in partnership with them to ensure energy security for all.
“Luckily, the collaboration with PETAN has always been on a sound footing as most members belong to both associations”, he said.
Engr. Ogunsanya in his comment during a panel discussion on the topic ‘Pipeline System for Nigeria’s Decade of Gas: Challenges and Opportunities’, posited that the country should use all forms of energy sources at its disposal to close the energy gap.
