- Category: NNPC
- Published on Monday, 03 May 2010 00:00
- Written by Admin
- Hits: 9298
What is PPMC?
The Acronym: PPMC means Pipelines and Products Marketing Company Limited. It was incorporated in Nov. 1988 as a wholly owned subsidiary of NNPC. It commenced operation in Jan. 1989
What is the relationship between PPMC and NNPC?
PPMC is a subsidiary of NNPC. NNPC is a Federal Government Corporation created by the merger of Nigeria National Oil Company (NNOC and Ministry of Petroleum Resources through decree 33 of 1977.
What are the major functions of PPMC?
PPMC supplies Crude Oil to Refineries for refining and evacuates Petroleum Products from the Refineries for distribution to the domestic markets. It also ensures that daily National demand for Petroleum Products are met by augmenting local supplies from Refineries with import. In addition, PPMC markets other special products such as HPFO, LPFO, Bitumen etc.
How can one get allocation for Petroleum Products like, LPFO, HPFO, Bitumen etc?
LPFO is Low Pour Fuel Oil mainly used in Industries as fuel for generation of power or for firing their heaters. Allocation is made to industries through Marketers. HPFO is mainly exported while Bitumen is allocated to construction Companies as well as the FMWH, SMWH etc.
How can one be a Marketer of PPMC’s products?
Marketers are first licenced by DPR, armed with the licence, bulk purchase agreement is entered into with PPMC.
How can one set up a filling Station and begin to get Products from PPMC?
The first port of call will be the DPR which will license the prospective marketer and then sign bulk purchase agreement with PPMC.
What is the national demand for Petrol, Kerosene, AGO, LPG and Aviation Kero.
Petrol or PMS is about 30 million litres per day,
AGO = 12 million litres per day
DPK = 8 million litres per day
ATK = 2 million litres per day
LPG = 192,000 Kg per day 15,360 cylinders of 12.5kg capacity
How many depots does NNPC have and why are some of these depots not functioning?
We have 22 depots across the Country some are not functioning due to lack of products occasioned by pipeline vandalism and other supply challenges.
Why is Nigeria always experiencing fuel scarcity and what could be done to find a lasting solution?
Inadequate supply of products due to frequent breakdown of the local refineries, incessant pipeline vandalism and bureaucratic delays in discharging imported products, strike actions by labour unions, product hoarding and diversion by unscrupulous marketers, Government’s policy on subsidy. Dependence on imported products and changes in market fundamentals of Crude Oil and Refined products in the International Markets.
What is PPMC doing about the incessant pipeline ruptures and vandalism with its attendant implications on life, property and environment?
Integrity survey of the pipelines are being carried out to determine those needed to be changed due to age. Government is also currently considering coming up with a master plan on pipelines protection. Ensuring that PROW is clearly delineated. Also, Nigerians need education and enlightenment to appreciate the importance for the protection of the pipelines and other public facilities.
Safety is paramount in the Oil and Gas Industry, what obtains in Pipelines and Products Marketing Company Limited?
PPMC has a full fledged department with responsibility for enforcement of HSE Industry Regulations with Slogan “SAFETY FIRST” supported by an annual safety week awareness campaign.
The constant increase in the price of crude Oil in the International Market is making some major users of the Product (Japan and the likes) to source for an alternative source of energy, what is your position on this?
PPMC will always be relevant in the transport energy sector since it is already keying into the biofuel development.
Some Investors are apprehensive about the Niger Delta crises, what do you think government can do to curb the crises?
Government is already addressing the issues with emphasis on the development of the region through a comprehensive Niger Delta Master Plan. Besides, Government recently established a Ministry of Niger Delta to coordinate development of the oil producing region. This is in addition to the Niger Delta Development Commission (NNDC) which has been in existence close to a decade and currently making appreciable impact in the lives of the people of the Niger Delta. Above all, Government also recently granted amnesty to the militants in the region, a unique move that may enhance peace in the region.
Corporate Social Responsibility (CSR) has become a vehicle to attract goodwill and attention to an organization, are you doing anything in this regards?
PPMC is a responsible Corporate Organization which has identified with its Host Communities through community assistance & sustainable development projects. It also carries out special programmes aimed at endearing her to her host Communities.
What measures should be taken in the Nigerian Oil and Gas industry to ensure that capacity building in engineering and fabrication is increased in the Oil and Gas Industry?
Strict compliance with the Local content initiative of the Federal Government, Deployment of the state of the art I.T infrastructure and Human Resources Development.
What are the major challenges of PPMC?
- Pipeline vandalism
- Subsidy on imported products – loss in revenue
- Cash crunch
- Obsolete/old equipment
- Continued encroachment on pipeline right of way
- Lack of prerequisite number of personnel
- Unscheduled shutdown of the refineries which results in disruption of products supply.
- Difficulty in establishing Letters of Credit for Offshore purchase of critical spare parts.
- Frequent invitation by members of the National Assembly
- Favour seekers from powerful and influential Publics.
It is widely alleged that PPMC staff connive and aid pipeline vandals in their nefarious act of vandalism.
Pipeline Vandalism is a criminal offence for which nobody is immuned against. Available records have shown that over 5000 (five thousand) arrests have been made across the Country and to date, No, PPMC staff have either been arrested or implicated. The allegation is therefore unfounded.
It is also believed that PPMC Management especially those in Marine or Supply and Distribution aid and abet demurrage on coastal Vessels that supply products to the Country.
Demurrage are paid directly to ship owners whom neither staff nor Management have access to. Nigeria also charges the lowest demurrage as its demurrage calculations are based on (AFRA) Average Freight Rate Assessment London tanker brokers’ panel as against the Spot rate charge (Platts). The difference between the two is about 10,000 USD. Ship owners are usually reluctant to come to Nigeria, because of this price differential. Again a number of agencies have roles to play before a vessel is discharged such agencies include NPA, Customs, DPR and Navy.
Product allocation is widely believed to be a source of quick and easy money in PPMC. How can one get this product allocation?
There are different types of products. The white products i.e PMS - Petrol, HHK – House Hold Kerosene, ATK - Aviation Turbine Kerosene, AGO – Diesel. These are allocated to Major and Independent Marketers. They sell these products in their various outlets.
However, in the past these Marketers use powerful and influential members of the public to obtain allocation for products they do not actually require, and turn around to sell the products to those who actually need it. There are other products mainly for Industrial users who have operational facilities. These products such as LPFO, SRG, Bitumen & LPG are allocated to users directly. However, some of these industrial users prefer to sell the allocation instead of using the product in their factory. Machinery has been put in place to identify specific industries engaged in this bad practice for appropriate sanction. HPFO is mainly for export.
How many Pump Stations does PPMC have in Nigeria?
PPMC has 15 Pump Stations out of which
8 are standing alone Pump Stations
3 are tied to the Refineries and
4 are tied to the Depots
Does PPMC transport different products through different pipelines?
PPMC transport all refined products through the same pipelines except Mosimi – Satellite product line where you have different pipelines for different products. A different pipeline is used for transporting Crude.
Does PPMC own and operate Product Shipping Vessels?
PPMC only chatter Vessels to Ship products. It also owns some Vessels.
How does PPMC secure her pipelines?
PPMC secure her pipelines through the use of Community guards, Nigeria Mobile Police Force, Nigeria Military, National Security and Civil Defence Corp also assist.
How does PPMC distribute products to the riverrine areas?
PPMC distributes products to the riverrine areas through floating Mega Stations and some filling stations with authorized licence to sell petroleum products in the Area.
Does PPMC market LPG?
Yes, PPMC markets LPG (Liquefied Petroleum Gas)
Does PPMC also export petroleum products?
Yes, PPMC exports, HPFO and sometimes other products when they are surplus.
Does PPMC market Crude Oil?
No. PPMC does not market Crude oil.
Apart form the use of pipelines, how does PPMC transport her products?
PPMC transports products using road tankers and coastal vessels.
How can one buy Kerosene from PPMC?
One can buy Kerosene from PPMC only if one has authorized storage facility and is a registered marketer with PPMC.
Why does PPMC grant credit facility to some marketers?
PPMC grants credit facility to some marketers it adjudged to be credit worthy in terms of their capacity.
What are the efforts put in place to reduce high demurrage in relation to importation of Petroleum Products?
Provision of N3.00 by Petroleum Product Pricing Regulatory Agency (PPPRA) to pay for Private Depots facilities in the interim.This is to enable big vessels discharge on time and depart.
How do we determine the Government subsidy?
The total landing cost ex-filling station minus fixed pump price by PPPRA plats.
What is PPMC doing to encourage people to use liquefied Petroleum gas (LPG) and what is the PPMC price?
PPMC is carrying out a campaign to encourage members of the public through participation in Trade fairs and exhibitions. PPMC price is N55.56 per litre.
What is the volume of LPG in 12.5kg cylinder?