Critical Success Factors Telecommunication Network Equipment Procurement Projects MTN Nigeria
Critical issues that should form the basic road map of the next government in nigeria vol 18-23...
-
Upload
usman-suleman -
Category
Economy & Finance
-
view
93 -
download
0
Transcript of Critical issues that should form the basic road map of the next government in nigeria vol 18-23...
Evaluating Critical Issues
For
Nigeria’s Strategic Roadmap Input
Nigerian Existing Downstream Infrastructure Revamp Strategy
2013 Regional Distribution of Refined Products in Nigeria
Existing Refined Petroleum Product Pipeline Overview
Existing Refined Petroleum Pipeline Revamp Strategy
Existing NNPC Refined Petroleum Depot Revamp Strategy
Existing Petroleum Pipelines Proposed Ownership Structure
Existing NNPC Petroleum Depot Proposed Ownership Structure
Volume 18-23| Mar 2015
Usman Suleman MBA (Oil & Gas ); B.Eng (Civil)
Proverbs 4:7_Wisdom is the Principal Thing
Going by the reported distribution of PMS,HHK,AGO and LPFO in 2013; the South and North accounted for 61%
and 39% of the national demand respectively.
Thus in revamping the existing downstream infrastructure, to guarantee the effective distribution of refined
petroleum products in Nigeria; the regional consumption indices will be used to prioritized the “Revamp
Strategy”.
South
Accounted for 61% of PMS,HHK,AGO & LPFO distribution in Nigeria for 2013
Source: NNPC Statistical Report (1997-2013)Authors Analysis
North
Accounted for 39% of PMS,HHK,AGO & LPFO distribution in Nigeria for 2013
Nigeria Strategic Roadmap Input| Vol_18: Mar 2015
2013 Regional Distribution of Refined Products in Nigeria
Nearly over 5000km of refined petroleum products and Crude-Oil pipelines crisscross through various communities in
Nigeria. These pipelines are integral to Nigeria’s energy supply and connect the local refineries and the refined
products import facilities with the various Depots in Nigeria; which serves as logistic hubs-to maintain substantial
storage facilities and serve as gateways for regional distribution by truck, or other means.
The existing refined petroleum pipeline has been subject of continued vandalization and rupture incidence over the
years. This is evident from the reported cases of vandalization and rupture cases over the same period; therefore
calling into question both the integrity of the pipelines and the existing monitoring systems in place to avert re-
occurrence.
The vandalisation and rupture of existing refined petroleum pipelines had resulted in huge losses in the past as
indicated in the evaluated indices in the Table below; with the Mosimi System 2B recording the highest weighted
pipeline incidence index of about 40.33 out of the five major segments. The Mosimi System 2B recorded an average
loss of 181.25 million Naira per kilometer of pipeline length in just 15-years; which is equivalent to about 60-100% of the
cost of constructing a new pipelinewith a design life of 30years, without considering the repair costs incurred.
From these evaluation it is clear that PPMC , will have to consider these critical indices for the purpose of developing a
“Pipeline Network Revamp Strategy” by prioritizing the portion of the pipelines for the five(5) categorized systems
to provide a tamper proof system to the nearest depot(s) in the Short andMid-term.
Key Indice-1 Key Indice-2
Loss per Pipeline length (litres per km)
Loss per Pipeline length (Naira per
km)
Pipeline Vandalism
Incidence per Pipeline length
(nos per km)
Pipeline Rupture
Incidence per Pipeline length
(nos per km)
Weighted Pipeline
Incidence IndexPORT-HARCOURT SYSTEMS 2,026,787 73,756,600 8.1 0.14 25.44WARRI (SYSTEMS 2A,2C,2CX) 553,657 26,358,650 4.5 0.08 10.46
MOSIMI (SYSTEM 2B) 3,136,106 181,347,812 6.7 0.20 40.33KADUNA (SYSTEM 2D) 190,821 14,216,037 4.0 0.22 12.93GOMBE (SYSTEM 2D) 148,862 5,309,192 11.8 0.04 10.85
6,056,233 300,988,291 35.0 0.68 100.00
Source: NNPC Statistical Report (1997-2013)Authors Analysis
Nigeria Strategic Roadmap Input| Vol_19: Mar 2015
Existing Refined Petroleum Product Pipeline Overview
In order to guarantee refined petroleum products supply reliability of the existing pipelines; whilst reducing the Short and
Mid-term cost of revamping the same; PPMC could employ the “Isolation Development Strategy”. This Strategy will seek to
provide for the evacuation of refined products to the nearest in-land depots located within a radial distance of 150 to 210km
distance to any of the existing and new Refining Centers; while revamping or constructing new depots to serve as new In-
land Regional Supply Hub to other regionalmarkets by road or railwayas illustrated in the figure hereunder.
The revamped pipelines will be upgraded to provide a vandalism proof system with fencing and CCTV network, together
with a state of the art SCADA system to monitor the ROW with sub-control and security posts mounted for every 25km
interval. These measures will be premised on a Risk Assessment study to identify the existing NNPC pipelines that are at the
highest Risk Level of vandalization, product loss and frequency of effecting repairs . These factors will culminate into a
“Weighted Pipeline Incidence Index” to classify the “Risk Profile” of the existing segments of the pipelines for the
purpose of initiating a proactive “Revamp and vandalism proof Strategy”.
Nigeria Strategic Roadmap Input| Vol_20: Mar 2015
Existing Refined Petroleum Pipeline Revamp Strategy
Source: The Nigeria Transportation Master PlanAuthors Analysis
165Km
197km
128Km
210km
140Km
Kaduna System
Warri System
Mosimi System
Port-Harcourt System
Nigeria Strategic Roadmap Input| Vol_21: Mar 2015
Existing NNPC Refined Petroleum Depot Revamp Strategy
Increase Existing Depot Holding Capacity
New Depot
To provide for an effective supply-chain a synergy between the planned revamp strategy for the existing pipelines and the,
the existingNNPC depotsand proposedNew depotswill be initiated.
The planned enhancement of the supply chain reliability to meet national demand taken into consideration the “Isolation
Strategy” proposed in the Short and Mid-term for the refined petroleum product pipelines, will provide avenues for new
depots to be constructed to serve as both strategic reserve and regional supply hubs . While some of the existing depots
that will be used as regional supply hubs will be revamped by increasing their holding capacity to meet the demand of the
catchment States and Regions.
This major Short and Mid-term upgrade and expansion project for the downstream sector, is expected to enable it handle
forecast demand of petroleum products for the nearest future at a more cost-effective delivery cost with near zero
vandlizationand product loss.
Prior to the upgrade, a re-assessment survey of the existing depots will be carried out , in order to identify the currents
status and thus the upgrade measures; whilst also evaluating the new holding capacities fro both the new and upgraded
existing depots.
Source: The Nigeria Transportation Master PlanNNPC Statistical Report (1997-2013)Authors Analysis
Nigeria Strategic Roadmap Input| Vol_22: Mar 2015
Existing Petroleum Pipelines Proposed Ownership Structure
Kaduna System
Warri System
Mosimi System
Port-Harcourt System
Existing Pipelines SPV
Indigenous Partners
PPMC (40%) IPMAN (15%)
FGN/Host States (10%) NUPENG (15%)
Foreign Technical Partner
(20%)
Source: The Nigeria Transportation Master PlanNNPC Statistical Report (1997-2013)Authors Analysis
Nigeria Strategic Roadmap Input| Vol_23: Mar 2015
Existing NNPC Petroleum Depot Proposed Ownership Structure
Increase Existing Depot Holding Capacity
New Depot
Existing NNPC Depots SPV
Indigenous Partners
PPMC (40%) IPMAN (15%)
FGN/Host States (10%) NUPENG (15%)
Foreign Technical Partner
(20%)
Source: The Nigeria Transportation Master PlanNNPC Statistical Report (1997-2013)Authors Analysis