Dr. Maikanti Baru

The Nigerian National Petroleum Corporation (NNPC) has blamed the recent scarcity of aviation fuel on the airlines for their inability to pay.

According to The Guardian, Dr. Maikanti Baru, Group Managing Director of the Corporation, revealed this during a visit by the management of the Nigerian Television Authority (NTA). Baru explained that the airlines were unable to meet the cash-and-carry policy by the marketers on account of the huge amount of money they owe.

He said that the Corporation has taken steps to ensure adequate supply of the Aviation Turbine Kerosene (ATK) with the importation of over 45 million litres.

The report stated that a Chief Operating Officer of one of the airlines, denied the NNPC’s claim of owing.

Oil marketers and airline operators have always place blame on the other over the scarcity of aviation fuel. While the marketers would blame the operators for owing huge debts and failure to make proper plans to source for fuel, the operators would blame marketers for hoarding the product and selling to the highest bidder.

The NNPC chief also said the corporation is committed to go on with its twin gas projects, Brass LNG and OK LNG.

The corporation said the two projects were high priority gas ventures, which promise to boost revenue to the Federal Government. Baru said monetization of natural gas was very important to the corporation.

“We are still committed as NNPC, to monetizing our natural gas. We have the Nigerian Liquefied Natural Gas (NLNG), which is at the moment monetizing about four billion standard cubic feet of gas on a daily basis (4 billion scf/d). We also have plans for Olokola LNG as well as Brass LNG.

We have a little challenge with market windows for these projects which we are reviewing on a monthly basis. Once the appropriate market window opens, we will quickly get more shareholders to join us for the projects,” Baru said.

He said a meeting of Brass LNG stakeholders was scheduled for early next year to see the way forward.

The GMD further revealed that the corporation was also working on gas monetization through proper enhancement of domestic gas supply for power generation and industrial use.

Source: The Guardian


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