Expdonaloaded News;Fuel crisis: PENGASSAN calls for restructuring of PPMC

To provide lasting solution to the inefficiency in distribution and supply of petroleum products throughout the country, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has advised the Federal Government to reposition the Pipelines and Products Marketing Company (PPMC).

The union averred that unless it resolves some of the challenges confronting the operations of PPMC, it may be difficult for petroleum products to be available in all parts of the country and at relatively the same prices.
The oil and gas workers union said that PPMC is not only crucial to the distribution of refined petroleum products but also the efficient and effective performance of the refineries as it supplies crude oil, which is the feed stock for their operations.
PPMC, according to PENGASSAN, has depots in Port Harcourt, Enugu, Calabar, Aba, Gombe, Yola, Ibadan, Ilorin, Makurdi and other major states’ capitals throughout the federation, but lamented that most of the pipelines lack petroleum products due to vandalisation.post by expdonaloaded.blogspot.com..It argued that if the company was repositioned and the pipelines functioning as expected, there will be more jobs for Nigerians while it will reduce pressure on Nigerian roads.
Some of the challenges affecting the efficient operations of PPMC listed by PENGASSAN include insecurity of pipelines and staff of the company, inadequate funding, aging equipment, supply of substandard operational equipment, shortage of manpower and irregular capacity building for existing staff of the company and lack of reliable fire trucks or good safety standards.
Speaking on its position, PENGASSAN noted that the greatest challenge confronting PPMC is vandalisation of pipelines by criminals and economic saboteurs.
Explaining the implications of the challenge, the association said, “the negative impacts of the pipeline vandalism on the nation’s economy and the oil and gas industry are enormous. They include non-functionality of existing refineries, increased operational cost, job losses, reduction in investments in the downstream sub-sector and inability to attract new investment, and inadequate supply/availability of refined petroleum products in other parts of the country.
“The efficiency and functionality of the nation’s refineries are continuously frustrated by inadequate crude oil supply, which is as a result of vandalisation of pipelines that supply crude to the refineries. The refineries are continuously starved of crude oil supply with possibility of forcing a shut down. “The inadequate availability and scarcity of refined products across the country can also be attributed to pipeline vandalism, as distributions of petroleum products, which are supposed to run through pipes to various parts of the country are vandalised.
“Both the crude and refined products are piped through the pipeline managed by PPMC. If the pipelines are effectively policed and secured, there will be regular supply of crude to the refineries and those imported and stored in tank farms to be piped to depots across the country for effective distribution to engender adequate availability of the products.”
The trade union also stated that many of its members had been attacked and killed by the vandals in line of duties to fix and repair pipelines broken and damaged by the vandals.
While demanding that government should evolve the political will to deal with pipeline vandalism by using modern technology to secure the pipelines, PENGASSAN called for overhauling of the security agencies that are in charge of providing security for the pipelines, as it accused some of the officers of conniving with the vandals.
PENGASSAN bemoaned the inadequate funding of PPMC, adding that most of the company’s equipment are aging and are in bad shape.
“The equipment are aging as some of them that have lifespan of 15 years are over 35 years old and are not well maintained. Even when maintenances were to be carried out, we discovered that contractors usually supplied substandard materials for the repair and maintenance.
“Some of the aging equipment are fire trucks, some of which are as old as 40 to 45 years. There is need for the government to purchase new fire trucks to combat any fire incident on the pipelines.”