PENGASSAN Advocates for Major Overhaul in Nigeria’s Refinery Operations, Pushes for Enhanced Energy Security Measures

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to intensify efforts to operationalise the country’s four refineries. The Association advocates for the government to reduce its majority stake in these refineries to no more than 49%, thereby allowing private investors to acquire a controlling interest of 51%, like the model used in the NLNG.

During a press briefing in Lagos, where Festus Osifo, PENGASSAN President, unveiled the critical points at PENGASSAN Energy and Labour Summit (PEARL2024) with the theme, “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment and Crude Oil Theft,” he highlighted the crippling effect of crude oil theft on the oil and gas industry’s viability in Nigeria. He stressed the urgent need to tackle this issue to secure the industry’s future.

Osifo also emphasised the Association’s recommendation for the Federal Government to bolster its investment in Dangote’s Refinery, pushing for an increase in shareholding from 7% to a minimum of 45%. This move is aimed at enhancing energy reliability and security for the populace.

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Establishing strategic reserves for petroleum products was another critical suggestion from PENGASSAN. The proposal involves collaborating with the private sector to leverage existing petroleum storage facilities across the country’s six geopolitical zones. This strategy is intended to mitigate supply shortages, often exacerbated by poor road conditions and erosion, which lead to frequent fuel queues.

Furthermore, PENGASSAN has pushed for the extension of pipelines to facilitate the distribution of refined petroleum products nationwide, which could alleviate the strain on the country’s road network caused by tanker trucks.

The Association also highlighted the need for widespread deployment of Compressed Natural Gas (CNG) infrastructure. Recognising CNG as an affordable and cleaner energy alternative for vehicles, PENGASSAN calls on the government and its partners to expand the availability of CNG facilities across all Nigerian cities.

Addressing energy affordability, the Association underscored the government’s need to stabilise the exchange rate to prevent further negative impacts on Nigeria’s energy sector due to the declining value of the Naira.

The summit extensively discussed the importance of energy security, affordability, and accessibility. It focused on maximising the benefits of Nigeria’s hydrocarbon resources and exploring the potential of sustainable and greener energy sources like solar, wind, biomass, and hydrogen.

Artificial Intelligence’s role in the future of the oil and gas industry was also a key topic, with discussions on leveraging AI advancements to boost economic growth, investor confidence, operational efficiency, productivity, and the protection of national resources and revenue.

Upskilling and reskilling the workforce through innovative, sustainability-focused research and fostering industry collaboration to cultivate a culture of continuous learning was emphasised as essential for preparing for future industry transformations.

PENGASSAN’s calls to action for the government include partnering with the private sector to manage petroleum product reserves efficiently, expanding the country’s pipeline infrastructure, enhancing CNG infrastructure, and ensuring energy affordability through economic stabilisation measures. These steps are seen as crucial for securing Nigeria’s energy future.