NNPC blames aviation fuel scarcity on airlines’ inability to pay
The Nigerian National Petroleum Corporation (NNPC) has blamed the recent scarcity of aviation fuel on the inability of airlines to pay for product.
Group Managing Director of the Corporation, Dr. Maikanti Baru, who disclosed this during a visit by the management of the Nigerian Television Authority (NTA), explained that the airlines were unable to meet the cash-and-carry policy by the marketers on account of huge debt owed them.
He hinted that the Corporation has taken steps to ensure adequate supply of the Aviation Turbine Kerosene (ATK) with the importation of over 45 million litres.
Chief operating officer of one of the airlines when contacted yesterday, denied the NNPC’s claim of owing.
Oil marketers and airline operators had often traded blames over the cause of aviation fuel scarcity in the industry. While the marketers would blame the operators for owing huge debts and failing to make adequate 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 NNPC is committed to carry 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 a cardinal mandate of the corporation.
His words: “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.”
He said a meeting of Brass LNG stakeholders was scheduled for early next year to see the way forward.
The GMD further disclosed that apart from the LNG projects, NNPC was also working on gas monetization through aggressive enhancement of domestic gas supply for power generation and industrial use.
Baru also lauded the management of NTA for its factual reportage of the corporation’s activities.