IN an attempt to arrest the current fuel scarcity in the country, the Port Harcourt refinery will commence operations tomorrow thereby boosting fuel supply through domestic source.
Group Managing-Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Funso Kupolokun, who stated this at the weekend in Abuja, warned that any oil marketing company found to be diverting fuel into undesignated place would be fined by the Corporation.
He said: “The two primary gasoline producing units – the crude reforming and the Fluid Catalytic units in PHRC are down due to technical problems. This has drastically reduced PMS production from the refinery and products requirement in the Eastern axis has to depend completely on importation.
“I am, however, happy to report that the refinery will resume on Monday, 15th January 2007.”
Kupolokun said the NNPC would seek police assistance to provide 24-hour security to selected stations around the Abuja Central Area. And “any diversion of bridged product to Abuja would attract a sanction of N150 per litre,” he stated.
As part of lasting solution to the problem of fuel distribution in Abuja and its environs, the NNPC boss added that the President had directed that every major marketer including NNPC must build a mega station in the Federal Capital City within the next 12 months, to tackle the issue of under-pumping.
He revealed the Corporation’s strategy for network expansion, which, he listed, as including increased network in under-pumped cities, entering into strategic alliance with Banks for the construction of standard stations with eight PMS, two AGO and two Kerosene nozzles.
He said: “NNPC is also providing designs for standard stations and engaging consultants in supervision of construction activities. This is also an opportunity for all major oil companies as well as third party.”
The beneficiaries of the scheme will include the 36 States and the FCT with at least 10 new standard stations. Among others, stakeholders that will benefit include dealers, banks, haulers, SPV, landowners, unemployed youths and entrepreneurs.
Kupolokun said the working of this scheme was such that a third party owning a land approved for construction of a filling station would contact NNPC “where an agreement is reached and the sum of N250 million bank loan is provided with NNPC’s assistance.”
He said contractual arrangements had been concluded with banks including Intercontinental, Oceanic, Fidelity, Stanbic, Diamond, Zenith, Access, FCMB, UBA and GTB.
The group-managing director spoke extensively on the genesis of the current fuel crisis across the country and the negative impact of vandalisation of pipeline, stressing that the menace has assumed a pandemic proportion and now wears a national outlook.
He revealed that early in December 2006, vandalism and fire outbreak occurred at Ije-Ododo village near Satellite Depot in Lagos.
He said though the area’s terrain made it difficult to access the pipeline; NNPC was able to put off the fire with the assistance of Julius Berger after eight days while the line was fixed four days after.
However, within two days of resumption of operation, the pipeline was again vandalised and was not secured until the eve of Christmas.
The resultant effect of all these is that the Corporation’s stock in Mosimi over the period was drawn down to low levels, as it is only this pipeline that links the import facilities at the Atlas Cove to Mosimi and the rest of the country including bridging to the North from Ilorin.
” Again, within two days of resumption of pumping, the vandals struck at Abule-Egba on December 26, 2006 resulting in the unfortunate loss of lives. It is pertinent to inform that in September 2006 following persistent vandalisation, Mr. President directed that the line be relayed to make it not amenable to vandalisation. Work is already progressing on scooping and tendering,” Kupolokun stated.
He noted that the root cause of vandalisation was simply one of criminal tendency of a few and their intention to get rich quick at all cost no matter the consequences.
He said: “Therefore, we all must take steps collectively to guard against the activities of a few persons in our midst, who are bent on inflicting pain on the rest of us.
“Pipeline vandalism does no one any good. Apart from the loss of loved ones and destruction of property acquired in a lifetime, it leads to economic and social dislocation, environmental degradation and possible health problems.”
He disclosed that “vandalism of products pipelines are now predominantly in three axis that are very crucial to petroleum products distribution in the country i.e. the Atlas Cove “Mosimi; Abuja-Suleja and PH-Aba-Enugu- Makurdi.
“For instance, Port Harcourt that recorded about 600 line beaks in 2003 had about 1,650 line breaks from January-September 2006 while Warri Area moved from only 100 line breaks to 600 during the same period.
“Also, Mosimi Area, which recorded only 50 line breaks in 2003 reported about 375 between January and September 2006. Even Kaduna and Gombe Areas where line breaks were an unusual occurrence in the past have caught the bug.” he said.