Ghana: President Mahama Assures IPPs Of Commitment To Resolve Power Sector Challenges
Ghana’s new Pesident H.E. John Dramani Mahama has assured Independent Power Producers (IPPs) in the country of his commitment to addressing the various challenges plaguing the power sector.
Speaking during a meeting with power producers in his office on Monday, January 13, the President mentioned that he is deeply concerned about the issues they are facing and will collaborate with them to find solutions.
“It is important for me to meet with you as the President. I care about your concerns and what you are going through, and I want to assure you that we will work together to resolve the issues within our power sector,” he said.
He added that the primary focus should be addressing challenges in the value chain, stating, “The first priority for us is to tackle the issue of the value chain— the entire power value chain. This means we must start from the downstream all the way to the upstream.”
Regarding the debts owed by the state to these private power producers, Mr Mahama explained that his previous government introduced energy sector levies to generate sufficient funds to clear the debts by the end of five years.
He noted that after he left office, the Akufo-Addo administration abandoned the levy and implemented its own policies. However, these did not succeed in clearing the debts.
The 2022 Annual Energy Sector Levy Act (ESLA) was designed to generate revenue from energy usage to ensure the country could pay the various power producers and use the funds for national development.
According to the new President, the previous government mismanaged the funds generated through Energy Sector Levy Act (ESLA).
“Unfortunately, ESLA was not used for its intended purpose, and the revenues were mismanaged. What should have gone towards paying off the debt was used for other purposes, which has led to the current situation,” the President lamented.
He emphasised that, while he is making the public aware of the challenges facing the energy sector, he has taken full responsibility as the President of the country and is committed to finding a solution to these problems.
Source:https://energynewsafrica.com
Ghana: Karpowership Ghana Threatens To Shutdown Plant Over Unpaid $270Million Debt
Karpowership Ghana Limited, a major independent power generator in Ghana, has threatenes to shut down its 450 MW plant due to an unpaid debt of $270 million owed by the Electricity Company of Ghana (ECG).
This revelation was made by Minister-Designate for Energy and Green Transition, Hon. John Abdulai Jinapor, during his ongoing vetting process in Parliament.
He had received a letter from the company to that effect.
Karpowership has been operational in Ghana since 2015, supplying 23% of the country’s total electricity demand.
The company signed a Power Purchase Agreement (PPA) with ECG in 2014 to supply 450 MW of power.
However, the unpaid debt has put the company’s operations at risk, prompting the threat of a shutdown.
The shutdown would have significant implications for Ghana’s energy sector, which has struggled with power crises in the past, notably the “Dumsor” crisis.
Source: https://energynewsafrica.com
Ghana: Energy Sector Debt Hits $3Billion
Ghana’s energy sector debt has surged to a staggering $3 billion(approximately (GHS 45 billion) as of December 2024, according to Energy Minister Designate Hon. John Abdulai Jinapor.
This revelation came during his vetting process at the Appointments Committee in Parliament.
Interestingly, Jinapor noted that when the previous National Democratic Congress administration left office in 2016, the energy sector debt stood at approximately $2 billion.
This means that the immediate past administration has accumulated an additional $1 billion in debt.
“When we were leaving office, the debt stock consolidated was close to 2 billion. Fortunately, I have a document summary of energy sector debts and lenders through August 31, 2017, the ESLA PLC got a full audit of the entire energy sector debts.
“I refer to page 17 of the document. The total energy sector liability at the time was GH₵9.4 billion, they themselves use an exchange rate of 4.4, if you use this exchange rate of 4.4, the debt had then moved to $2.1 billion. So let me put on record that as at this time when the debt was validated, the debt was $ 2.1 billion,” Mr Jinapor stated.
Mr Jinapor, who chaired the energy subcommittee of the transition team, revealed that as of September 30, 2024, the debt had risen to $2.5 billion, adding that a subsequent reconciliation meeting with the Ministry of Energy, the Energy Commission, and the Electricity Company of Ghana (ECG) confirmed that the debt had further escalated to $3 billion.
“As we speak today, the reconciled figure from official sources is $3 billion,” he stated.
Source: https://energynewsafrica.com
Moscow Claims Ukraine Attempted An Attack On TurkStream Gas Pipeline In Russia
Ukraine this weekend attempted a drone attack on a compressor station in southwest Russia which is part of the infrastructure of the TurkStream gas pipeline—the last remaining route for Russian gas flows to Europe, Russia’s Defense Ministry said.
TurkStream is a pipeline connecting southern Russia to Turkey under the Black Sea and then delivering gas from Turkey to Europe. Hungary is the EU customer that receives Russian gas via TurkStream. The Russian Defense Ministry said that Ukraine had sent nine drones to hit the Russkaya compressor station in the southwestern Russian region of Krasnodar with the aim of halting gas deliveries to European countries. All drones have been shot down, Russia said, adding that the compressor station was not damaged and there were no injuries or casualties among the personnel or civilian population. As a result of falling fragments of one shot-down drone, the building and equipment of a gas metering station at the compressor sustained minor damage, which was quickly fixed by Gazprom’s emergency response team on the site, the Defense Ministry added. The compressor station continues to supply natural gas to the TurkStream pipeline as usual and there have been no malfunctions, Russia said. After the end of the Russian flows via Ukraine, TurkStream remains the last gas route of Russia’s natural gas to south and southeast Europe via Turkey. On December 31, the supply deal for Russian gas to Europe transiting Ukraine expired, and deliveries stopped on January 1, after Ukraine said it would not pursue an extension of the transit agreement. At 0500 GMT on New Year’s Day, Gazprom halted pipeline deliveries, and the last remaining EU members that were still receiving gas from Russia until December 31 – Austria, Slovakia, and Hungary – lost this source of supply. Hungary will continue to receive Russian gas via the TurkStream gas pipeline via Turkey and the Balkans, while Austria and Slovakia have arranged to have natural gas from other sources supplied. Source: Oilprice.comGhana: Energy Minister- Designate Faces Vetting Committee Today
The Minister-Designate for Energy Hon. John Abdulai Jinapor is facing the Appointments Committee of Parliament today for vetting.
This is a crucial step in his confirmation process, as the Committee will scrutinize his qualifications, experience, and policies.
The nominee by the President of the Republic is a Member of Parliament for Yapei Kusawgu and a former deputy minister for Power during the erstwhile John Dramani Mahama administration.
His appointment has generated interest, and many are eager to see how he will perform during the vetting process.
The Committee will likely grill him on his plans for the energy sector, his views on current energy policies, and his ability to work with stakeholders.
With the vetting committee currently in session, vetting the Minister Designate for Finance, Jinapor’s turn is eagerly anticipated.
Jinapor’s impressive educational background will likely be an asset during the vetting process.
He holds multiple degrees, including a Master of Arts in Economic Policy Management, an MBA in Marketing, and a Master of Science in Development Finance from the University of Ghana.
Additionally, he holds a Master of Science in Energy Economics from GIMPA and a Postgraduate Diploma in Finance and Financial Law from the University of London.
Jinapor will be expected to demonstrate his experience and competency in keeping the lights on for Ghanaians.
The West African nation will be watching closely as he faces the Appointments Committee today.
Source: https://energynewsafrica.com
Ghana: President Mahama Dissolves Boards Of Public Corporations, Councils& Commissions
Ghana’s new President H.E. John Dramani Mahama has officially dissolved all boards of Commissions, Councils, and Public Corporations effective, Monday, 13th January 2025.
The dissolution does not extend to commissions that are deemed independent, as clarified in the announcement.
This means the Boards of GNPC, ECG, NEDCO, VRA, GRIDCO, BOST, NPA, Bui Power Authority and Tema Oil Refinery have all being dissolved.
A statement issued by President Mahama’s spokesperson, Felix Ofosu Kwakye, explained that the affected boards, Commissions, and Public Corporations will be reconstituted in accordance with their respective enabling laws.
In the meantime, management teams of these affected bodies have been instructed to seek clearance from the Chief of Staff before making any major decisions until further notice.
President Mahama expressed his appreciation to all individuals serving on the dissolved boards and commissions, commending them for their service.
He also wished them well in their future endeavours.
Source: https://energynewsafrica.com
Ghana: WAPCo Sets February 3 For Second Phase Of Offshore Pipeline Cleaning
The West African Gas Pipeline Company Limited (WAPCo) has announced a revised schedule for the second phase of the cleaning and inspection of its offshore pipeline from 3rd February to 2nd March 2025.
The offshore pipeline stretches from Badagry in Lagos State in Nigeria through Benin, Togo and Ghana.
This move is to enable the new administration to have some time to make arrangements and procure adequate liquid fuels, notably Heavy Fuel Oil (HFO) and Light Crude Oil (LCO) to power the thermal plants in both western and eastern power enclaves since the exercise will result in curtailment in gas supply.
The gas transportation company initially planned to commence the second phase of the cleaning and inspection exercise commonly known as ‘pigging’ in January 2025 after successfully completing the first phase in December 2024.
However, Ghana had a change in government on 7th January 2025, following the declaration of results of the December 7, 2024, general election.
The flag bearer of the then opposition National Democratic Congress (NDC), Mr John Mahama, won the presidential election and was on Tuesday, 7th January, sworn into office.
The new administration observed that there were inadequate liquid fuels to keep the power generation plants in operation.
At a high-level meeting last week involving WAPCo, GRIDCo officials and the government’s technical committee chaired by the Chief of Staff, Julius Debrah, the technical team requested WAPCo to delay the maintenance exercise for about two weeks to allow the new government to arrange for adequate fuel.
An official statement issued by WAPCo on Wednesday explained that its decision was to better accommodate the interests of key stakeholders.
The four-week exercise will involve temporary suspension of reverse gas flow from Ghana’s
Western Region to Tema also in Ghana, and the shutdown of key facilities in Tema, Ghana, in
Lomé, Togo, and in Cotonou, Benin.
During this shutdown period, WAPCo will replace subsea valves located at these strategic locations to enhance operational safety.
The comprehensive cleaning and inspection exercise is a key regulatory requirement, and it aligns with industry best practices to ensure the safe and efficient operation of the West African Gas Pipeline (WAGP).
WAPCo is required to conduct these inspections every five years, as part of efforts to maintain the integrity of the WAGP and ensure its continued safe and reliable operation across the West African region.
Source: https://energynewsafrica.com
Nigeria: No System Collapse, Just A Line Tripping – TCN Clarifies
The Transmission Company of Nigeria (TCN) has dismissed media reports that the national grid collapsed on Saturday.
According to a statement released by Ndidi Mbah, General Manager of Public Affairs, the grid did not experience a collapse, but rather a tripping of two transmission lines.
The incident occurred at approximately 13:41 hours, when the Osogbo-Ihovbor line tripped, followed by the Benin-Omotosho line.
This disruption affected bulk power supply to the Lagos axis but did not result in a complete grid collapse.
The TCN reported that total generation on the grid was 4,335.63MW just before the tripping and 2,573.23MW after the incident. This significant difference in generation capacity clearly indicates that the grid remained operational, albeit with reduced capacity.
The tripping of the transmission lines affected several power plants, including Egbin, Olorunsogo, Omotosho, Geregu, and Paras. However, TCN engineers worked diligently to restore power supply, and all affected plants are now back online except for the Benin-Omotosho 330kV line, which is still undergoing repairs.
The TCN urged the public to be cautious of misinformation and to rely on verified facts. The company remains committed to building a robust transmission grid, despite the challenges it faces.
Ndidi Mbah emphasized the importance of accurate reporting, saying, “It is imperative that we understand the negative impact of deliberately misinforming the public and the value of disseminating true and verifiable facts.”
Source: https://energynewsafrica.com
US And UK Toughen Sanctions On Russian Oil industry
The Biden administration has imposed some of its toughest sanctions yet on Russia, in a move designed to hit Moscow’s energy revenue that is fuelling its war in Ukraine.
The measures target more than 200 entities and individuals ranging from traders and officials to insurance companies, as well as hundreds of oil tankers.
In a first since Moscow’s all-out invasion of Ukraine, the UK will join the US in directly sanctioning energy companies Gazprom Neft and Surgutneftegas.
“Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives,” said Foreign Secretary David Lammy.
Some of the measures announced by the US Treasury on Friday will be put into law, meaning the incoming Trump administration will need to involve Congress if it wants to lift them.
Washington is also moving to severely limit who can legally purchase Russian energy, and going after what it called Moscow’s “shadow fleet” of vessels that ship oil around the world.
US Treasury Secretary Janet Yellen said the actions were “ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”
President Joe Biden said Russian leader Vladimir Putin was in “tough shape”, adding that “it’s really important that he not have any breathing room to continue to do the god-awful things he continues to do.”
“It is probable that gas prices [in the United States] could increase as much as three or four cents a gallon,” said the president.
But, he added, the measures were likely to “have profound effect on the growth of the Russian economy”.
Ukraine’s president, Volodymyr Zelensky, thanked the US for what he called its “bipartisan support”.
Since the beginning of the war in Ukraine, a price cap on oil has been among the key measures designed to curb Russia’s energy exports.
But as Olga Khakova from the Atlantic Council’s Global Energy Centre explained, its effectiveness was “diluted” because it was also trying to avoid the volume of Russian oil in the market dropping.
This was due to concerns about the impact reduced supply would have on the global economy.
But experts said the oil market was now in a healthier position.
“US oil production (and exports) are at record levels and rising, and therefore the price impact of taking Russian oil off the market, the objective of today’s sanctions, will be attenuated,” said Daniel Fried, a distinguished fellow at the Atlantic Council.
“The US government has gone after the Russian oil sector in a big way, intending to deal what may turn out to be a body blow,” Fried added.
John Herbst, a former US ambassador to Ukraine, said while the steps were “excellent”, their implementation would be critical.
“Which means that it is the Trump administration that will determine if these measures do in fact put pressure on the Russian economy,” he said.
Source: BBC
Ghana: President Mahama Renames Energy Ministry
Ghana’s President John Dramani Mahama has renamed the Ministry of Energy to be the Ministry of Energy and Green Transition as part of his administration’s plan to restructure the country’s civil service for efficiency and cost reduction.
The new administration has reduced the number of ministries from 30 to 23, as stated in the Civil Service Instrument, 2025, signed by President Mahama on January 9, 2025.
The renaming is believed to align with Ghana’s Energy Transition policy, focusing on advancing green energy, low-carbon power generation, energy efficiency and decarbonisation of oil and gas production.
The Ministry would be headed by Honourable John Abdulai Jinapor, the Member of Parliament for Yapei-Kusawgu and former Deputy Minister for Power.
Source: https://energynewsafrica.com
Ghana: NPA Announces Measures To Address Fuel Shortages In The North
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has assured residents in Northern Region that there is no cause for alarm regarding the reported pockets of petrol shortages.
A statement issued by the NPA said following reports of pockets of shortage of petrol in the northern part of the country, the Technical Committee on Energy set up by the Chief of Staff, met on 10th January 2025 to discuss modalities to resolve the issue.
It said the logistical challenge identified is being comprehensively resolved using a three-pronged approach.
The first approach is that Oil Marketing Companies (OMCs) are being granted a special dispensation to load petrol from the Bulk Energy Storage and Transportation Company (BOST) depot in Kumasi to serve retail outlets in the five regions in the northern part of the country.
Another arrangement is that Oil Marketing Companies (OMCs) are being granted a special dispensation to load more petrol from depots in Tema to augment what is being loaded from Kumasi to serve retail outlets in the five regions in the northern part of the country.
Arrangements are also being made in collaboration with BOST to move nine million litres of petrol in the pipeline between the Buipe and Bolgatanga depots into storage in Bolgatanga to immediately serve retail outlets in the five regions in the northern part of the country.
The statement said the three-pronged solution is being implemented concurrently to immediately address the issue.
“Consequently, we wish to encourage the consuming public to go about their normal business and avoid panic buying.
“The NPA wishes to reassure Ghanaians of adequate fuel stocks in the country and there are vessels lined up to discharge products into the country,” it stressed.
Source: https://energynewsafrica.com
Gambia: NAWEC Warns Against Installation Of Unauthorized Cables; Serves Notice Of Prosecution
The Gambia’s National Water and Electricity Company (NAWEC) has issued a stern warning to individuals and businesses installing unauthorized foreign cables on its transmission and distribution systems to cease or face prosecution.
A statement issued by NAWEC mentioned a surge in fire incidents on its power lines, and attributed them to illegal installation of cables by private satellite and video channel dealers.
According to NAWEC, these rogue activities not only pose serious risks to lives and properties but also compromise the integrity of the power network.
In response, NAWEC has announced that it will be taking drastic measures to address the issue.
“Effective January 23, 2025, all unauthorized cables will be removed, and legal action will be taken against those involved,” NAWEC said in the statement.
NAWEC emphasised that the safety and well-being of its customers and the general public remain its top priority.
The company urged all individuals and businesses engaged in these illegal activities to cease immediately and cooperate with authorities to maintain the integrity of the power network.
The company also appealed to the public to report any suspicious activities or illegal installations to the authorities.
Source: https://energynewsafrica.com
US, South Korea Agree To Boost Nuclear Power Collaboration
South Korea and the United States of America, have signed a Memorandum of Understanding (MoU) on Principles Concerning Nuclear Exports and Cooperation, finalizing a provisional understanding reached in November.
The MoU provides a framework for cooperation in expanding civil nuclear power in third countries.
The MoU provides a pathway for both countries to keep up with emerging technologies in the sector.
The agreement was signed in the presence of South Korea’s Industry Minister, Ahn Duk-geun, and US Secretary of Energy Jennifer Granholm.
The MoU reaffirms the two countries’ commitment to advancing peaceful nuclear energy, enhancing energy security, tackling the climate crisis, and ensuring a safer world. The US and South Korea have a 70-year-long partnership in civil nuclear power.
The agreement is significant for South Korean nuclear exports, particularly in the context of its bid to build nuclear power units in the Czech Republic.
The MoU could pave the way for US governmental consent for the deal, making negotiations with Westinghouse more straightforward.
South Korea’s acting president, Choi Sang Mok, has expressed the country’s intention to “smoothly proceed with major cooperation projects” with the Czech Republic, including the construction of a nuclear power plant in Dukovany.
Source: https://energynewsafrica.com
Namibia’s Oil And Gas Sector Remains Buoyant Despite Shell’s Write-Down
Namibia’s Ministry of Mines and Energy has reaffirmed the country’s commitment to developing offshore oil and gas resources, following Shell’s decision to write down its discoveries in the country.
A statement issued by the Ministry emphasised that the decision by Shell would not significantly impact Namibia’s oil and gas development, citing a plethora of ongoing exploration activities and investments by leading international oil companies.
The Ministry said they are positive that the remaining potential of PEL39 and other exploration campaigns would translate into commercial developments.
“Shell’s discoveries in PEL 39 represent just some of the many exploration milestones witnessed offshore Namibia since 2022,” the statement said.
A Hub Of Exploration Activity
Namibia’s offshore acreage has witnessed significant exploration milestones since 2022, with multiple discoveries and ongoing drilling campaigns.
TotalEnergies, one of the exploration firms, is making progress with its multi-well appraisal and exploration drilling campaign in Block 2913B, situated in PEL 56, with plans to make a Final Investment Decision in 2025 and achieve first oil by 2029.
Galp, meanwhile, is seeking to bring in another partner on the Mopane complex, following two discoveries at the Mopane-1X and its successful appraisal in Mopane-2A well in 2024. The Mopane complex in PEL 83 is believed to contain significant volumes of hydrocarbons in place.
New Entrants And Expanding Portfolios
Rhino Resources, in partnership with Azule Energy, NAMCOR, and Korres Investments, is also currently drilling the first of two high-impact wells at PEL 85. Petrobras is seeking farm-in opportunities offshore, while Chevron and its joint venture partners Namcor and Trago are undertaking drilling activities for the Kapana 1X well in PEL 90.
Chevron has also acquired an 80 per cent operated interest in PEL 82, featuring over 3,500 km² of 2D and 9,500 km² of 3D data.
Woodside Energy gained the rights to PEL 87 3D seismic data in 2024, which would further test the additional opportunities within the prolific Orange Basin.
A Bright Future Ahead
The Minister for Mines and Energy, Tom Alweendo, expressed confidence in Namibia’s offshore resources, stating, “These investments signal a strong commitment by leading international oil companies to unlock the full potential of Namibia’s offshore acreage. While the Shell write-down is unfortunate, we believe that we have barely begun to scratch the surface of the country’s offshore resources.”
The Ministry said government remains committed to working with dedicated companies to develop these resources, with plans to deliver first oil production in the near future.
Namibia’s oil and gas sector continues to gain momentum and is poised to become a significant player in the global energy market.
Source: https://energynewsafrica.com