Ghana: Eni Shuts Down FPSO John Agyekum Kufuor For One Week Maintenance
Italian oil and gas firm, Eni, the operator of Offshore Cape Three Points in the Republic of Ghana, has announced the shutdown of the Floating Production Storage and Offloading (FPSO) John Agyekum Kufuor for a planned maintenance.
This was revealed in a statement issued by the Electricity Company of Ghana, the entity responsible for electricity supply in southern Ghana.
The ECG indicated that the Floating Production Storage and Offloading (FPSO) vessel shutdown would start from Thursday, September 12, to Wednesday, September 18, 2024, as part of a scheduled maintenance exercise.
“We do not anticipate power outages as a result of this exercise.
“However, in the unlikely event that power generation is impacted, the public will be duly informed,” the statement said
Source: https://energynewsafrica.com
South Africa: Law Makers Grill NERSA On Electricity Tariff Hikes
Electricity and Energy Minister Kgosientsho Ramokgopa has acknowledged that the high price of electricity is hitting hard on both low-income and middle-class households.
Ramokgopa and the National Energy Regulator of South Africa (NERSA) appeared before Parliament regarding electricity price hikes, according to a report by SABCnews.
MPs wanted to know how NERSA arrived at the decision to increase electricity prices.
The MPs said they’re concerned about the high price of electricity in the country and the massive tariffs that are approved by NERSA.
They want government to intervene and minimize the devastating impact that the hikes are having on households and the economy.
“Let’s look at an average increase of 15%, that’s more than double the inflation rate, in fact, it’s more than three times the inflation rate in South Africa, so it’s having a massive inflation pressure on the cost of living,” says DA MP Kevin Mileham.
“The tariffs that are up now [Iam] just worried that businesses will face increased operational cost which might lead to higher prices for consumers and that will have job cuts and businesses close,” says ANC MP Vusumuzi Nkosi.
However, NERSA says its process to determine municipal traffic considers the socio-economic conditions of the country.
In addition, NERSA says it also considers millions who receive free electricity.
“The reason we also introduced the inclining block format was exactly to caution the poor then and yes, as we go forward, we will continue to revise the methodology to take into account whatever socioeconomic effects are there, but inclining block tariff was exactly for that but maybe it’s implementation and time has passed and we have to look at something different,” says Thembani Bukula, NERSA Chairperson.
Government says it is aware of the challenges faced by people due to the electricity price increase.
“We want to make sure that electricity pricing structure is such that it’s affordable for low-income households and cost effective for everyone so that businesses are competitive and even the middle class there, I mean they are also under significant amount of burden so I’m not about to suggest that it’s only the poor feeling the pain,” says Ramokgopa.
NERSA also says it is appealing the ruling by the North Gauteng High Court on the application brought by AfriForum on municipalities that were authorized to implement the tariff increases.
The court ruled that such tariff hikes without the required cost-of-supply studies are unlawful and invalid.
Source: https://energynewsafrica.com
Ghana: Government’s Profit Motive In Liquid Fuel Procurement Is Crippling Ghana’s Energy Sector
Ghana’s energy sector is teetering on the brink of financial collapse. At the heart of this crisis is the Electricity Company of Ghana (ECG), a critical player in the electricity supply value chain, struggling to raise the necessary revenue to meet its obligations to Independent Power Producers (IPPs) and fuel suppliers.
This ongoing inability to pay debts is driving the energy sector into a vicious cycle of debt accumulation, energy insecurity, and economic disruption. While inefficiencies, technical losses, and revenue collection challenges often dominate public discussions, one factor has been conveniently glossed over: the government’s deliberate preference for the procurement of exorbitantly priced and environmentally unfriendly liquid fuels, such as light crude oil (LCO) and diesel, over cost-effective and cleaner alternatives like natural gas. What appears to be an energy strategy has, in reality, become a revenue-generating scheme for the government or some so-called influential individuals, at the expense of a sustainable and financially viable energy sector.
Historically, natural gas has been recognized as the least-cost fuel for power generation, offering a cleaner and more stable supply compared to liquid fuels like light crude oil and diesel, per the Energy Sector Recovery Program recommendations. Yet, in recent years and months, Ghana’s energy policies have veered towards the procurement of these expensive fuels, at the least chance, which carry significantly higher costs both in terms of price and environmental impact. This begs the question: why would any government choose such a path when cheaper, cleaner, and more reliable alternatives are readily available to religiously pursue?
The answer is unsettling. The government’s preference for liquid fuels stems not from necessity or energy security concerns, but from its ability to profit from the importation of these fuels. Unlike natural gas, whose pricing is more stable and often determined by long-term contracts, liquid fuels are purchased on the international market, where prices fluctuate frequently. This volatility creates opportunities for markups, commissions, and profit margins at various points along the procurement chain. By exploiting these price differences, the government can cash in on procurement deals, earning excessive gains at the cost of the energy sector’s financial health.
The direct result of this strategy is an unsustainable financial burden on ECG. Power generation from light crude oil and diesel is significantly more expensive than from natural gas. These inflated generation costs, in turn, inflate the tariffs that ECG must charge consumers. However, due to the politically sensitive nature of electricity pricing in Ghana, the company is unable to pass on the full cost to consumers, as tariffs are often set below the actual cost of generating and distributing electricity. This mismatch between costs and revenue leaves ECG operating at a deficit, incapable of meeting its obligations to IPPs.
These financial shortfalls have devastating effects on the entire electricity supply value chain. IPPs, which provide a significant portion of Ghana’s power, rely on timely payments from ECG to continue operations. When payments are delayed, IPPs are forced to scale back their operations or halt them altogether, leading to power shortages and disruptions. Additionally, fuel suppliers, who are critical to ensuring a steady supply of light crude oil and diesel, are left unpaid, further exacerbating the sector’s financial instability. The ripple effect is clear: from generation to distribution, the entire system is compromised, and the result is frequent power outages, mounting debts, and reduced investor confidence in the sector.
While the government’s pursuit of profit through liquid fuel procurement carries obvious financial consequences, the environmental cost is equally, if not more, concerning. Light crude oil and diesel are some of the dirtiest fuels available for power generation, producing significantly higher levels of greenhouse gas emissions compared to natural gas. In an era when global attention is focused on reducing carbon footprints and transitioning to cleaner energy sources, Ghana’s continued reliance on these environmentally harmful fuels runs counter to both international trends and the country’s own commitments to combating climate change.
This reliance on liquid fuels also jeopardizes Ghana’s potential to develop a sustainable energy sector. Instead of capitalizing on the growing opportunities in renewable energy, such as solar and wind, which are becoming increasingly cost-competitive, the country remains shackled to an outdated and environmentally damaging energy policy. This approach not only undermines global efforts to reduce emissions but also limits Ghana’s ability to attract investment in clean energy infrastructure, which could help to stabilize the sector in the long term.
Natural gas presents an economically and environmentally viable alternative to liquid fuels. It is not only cheaper to produce electricity from natural gas, but it is also cleaner, emitting up to 50% less carbon dioxide compared to oil-based fuels. The availability of natural gas through domestic production and regional supply agreements, such as the West African Gas Pipeline, makes it a logical choice for power generation in Ghana.
Furthermore, the stability of natural gas prices, often determined through long-term contracts, provides an added layer of financial predictability. This would allow ECG to better plan its revenue streams, meet its obligations to IPPs, and ensure a more stable supply of electricity for consumers. A transition to natural gas would also free up funds that are currently being wasted on overpriced liquid fuels, allowing the government to invest in renewable energy development, grid modernization, and other critical infrastructure improvements.
To break free from the financial chokehold that the government’s liquid fuel procurement strategy has placed on the energy sector, bold policy reforms are required:
- Prioritize Natural Gas: The government must urgently transition to natural gas as the primary fuel for power generation. This shift would reduce generation costs, stabilize electricity tariffs, and free up revenue for reinvestment in the sector.
- Enforce Cost-Reflective Tariffs: While politically sensitive, there is no escaping the need for cost-reflective tariffs. ECG’s inability to raise adequate revenue is partly due to artificially low tariffs. A gradual and transparent process for adjusting tariffs to reflect the true cost of electricity production and distribution is essential for the sector’s financial sustainability.
- Regulate Fuel Procurement: The energy sector needs stricter regulation and oversight of fuel procurement processes to eliminate the opportunities for excessive markups and profiteering. A transparent, competitive bidding process for fuel procurement should be enforced to ensure that Ghana gets the best possible price on its fuel imports.
- Invest in Renewable Energy: In the long term, the government should prioritize investments in renewable energy sources like solar and wind. These sources are not only environmentally friendly but also offer a hedge against the volatility of fossil fuel markets.
Uganda International Oil & Gas Summit 2024
UIOGS is firmly established as the official platform for business in Uganda’s hugely exciting energy, oil and gas industries
Uganda is certainly experiencing a transformative time, with a stabilised government, numerous tax and financial breaks for investors, the refinery underway, pipeline development and pound for pound one of the most cost-effective options for oil extraction available, the Albertine Graben offers a real opportunity
The 8th edition took place in November 2023, with the continued support of the Ministry of Energy and Mineral Development (MEMD), Uganda and all of the leading stakeholders from across the East African oil and gas sector, UIOGS has firmly underlined its position as the region’s must-attend meeting in the sector, annually attracting global attention and participation from across the industry.
Mark your diary and join us for this November for UIOGS 2024.
3rd Edition Of International Conference On Oil, Gas, And Petroleum Engineering
Themed “Future Trends in Oil Refining: Meeting Energy Demands“ the conference promises to shed light on the latest trends and innovations in the dynamic field of oil, gas, and petroleum engineering, bringing together experts from both industry and academia.
The world’s economic growth is intricately tied to energy demand, where oil and gas have been vital lifelines for over a century.
Anticipating a surge in demand for oil and gas as primary energy sources, the conference serves as a platform for exploring this evolving landscape.
While the industry has made strides in areas like social responsibility, safety, and environmental preservation, challenges persist.
Addressing these challenges involves tackling cost reduction, optimizing industrial asset performance, and minimizing environmental impact against a backdrop of global demand fluctuations and stringent regulations.
September 19-21, 2024
Rome, Italy
Ghana Oil And Gas Conference 2024
The Ghana Oil and Gas Conference is a platform for stimulating ideas for petroleum operations which brings together national and international oil and gas companies, government regulators, independents, investors and service providers.
September 25 · 9am – September 26 · 4pm GMT
Accra Marriott Hotel
Liberation Road Accra, Greater Accra Region
Libya’s Oil Exports Crashed By 81% Amid Political Standoff
Amid the ongoing political standoff between rival governments, Libya’s crude oil exports plummeted to 194,000 barrels per day (bpd) last week, an 81% plunge compared to the previous week, according to data from Kpler cited by Reuters.
Last week, the average export levels were way off the 1 million bpd in exports in the previous weeks, the data showed on Wednesday.
Libya’s National Oil Corporation (NOC) has canceled some cargoes, although it has not declared force majeure on all exports from the country.
NOC has declared force majeure on individual cargoes only, trade sources familiar with the matter told Reuters.
A source at NOC told the newswire that the company allowed some tankers to dock at Libyan ports and load crude from storage, in order to avoid fines if the shipments fail to fulfill contractual obligations.
The latest crisis in Libya erupted at the end of August.
Part of Libya’s production and exports were halted due to a political standoff over the leadership of the OPEC producer’s central bank.
Oil production at several Libyan oilfields was halted on August 27 after the rival government in the east announced a stop to all oil production and exports from Libya.
Libya, which pumps about 1.2 million bpd of oil, was plunged into a deeper political crisis over the row about the leadership of the Central Bank of Libya, the only internationally recognized depository of Libya’s oil revenues.
The internationally recognized government in the capital city in the west, Tripoli, was trying to replace Sadiq Al-Kabir, the governor of the Central Bank of Libya.
This has led to the latest controversy between the Eastern and Western governments and political factions, threating again to reduce Libya’s oil production and exports.
Last week, Libya’s feuding political factions reached an agreement on the mechanism and timelines for appointing the Central Bank Governor and Board of Directors in consultations hosted by the United Nations Support Mission in Libya (UNSMIL).
The situation, however, remains uncertain.
On Tuesday, UNSMIL said it would resume facilitating talks on resolving the crisis of the Central Bank of Libya at its headquarters in Tripoli on Wednesday.
Source: Oilprice.com
The Gambia Seeks Chinese Support To Develop Energy Projects To Increase Electricity Access
The Republic of The Gambia is seeking the assistance of China to develop energy projects to increase electricity access across the West African nation.
During his recent visit to China, The Gambian President Adama Barrow held discussions with Chinese President Xi Jinping on various areas of cooperation, including energy.
According to a report by the African Development Bank, at least 70 per cent of people in The Gambia are projected to have access to electricity by the end of 2024.
“The priority of my government is to make electricity affordable and accessible; expansion of seaport port of Banjul, road networks, mechanisation of agriculture, amongst others,”
The Gambian President explained, noting the need to encourage private sector participation.
The Gambian leader also emphasised the need for modernisation of agriculture and the use of technology to add value to rice production and create jobs for women and youth as well as ensure food security.
President Jinping, on his part, praised the growing relationship between China and The Gambia and thanked The Gambian President for supporting the ‘One China’ policy at the global level.
He gave assurances that China would work with The Gambia in its priority areas to develop agriculture through modernisation, expansion of the infrastructure and build capacity through higher education.
Source: https://energynewsafrica.com
Nigeria: Mainstream Energy Solutions Limited Hosts Air Force Chief At Kaniji Hydropower Plant
Mainstream Energy Solutions Limited, operators of the Kainji, Jebba and Zungeru hydropower plants, recently hosted the Chief of the Air Staff, Air Marshal Sani Hassan Bala, at the Kainji Hydropower Plant.
The strategic visit aimed to highlight the significance of the Kainji hydropower facility as a vital national asset and to underscore its contributions to Nigeria’s industrial growth and energy security.
Upon his arrival at the Kainji Airforce base, Air Marshal Bala was warmly received by a parade of officers.
Following this ceremonial welcome, he proceeded to the palace of the Emir of Borgu. During the visit, the Emir praised the importance of traditional institutions in fostering peace and harmony in the region.
He also commended Mainstream Energy Solutions for their exceptional management of the hydropower facility and their impactful corporate social responsibility (CSR) initiatives carried out through the Mainstream Foundation.
The Emir highlighted how these initiatives have positively affected the local community and the region at large.
After the Emir’s palace visit, Air Marshal Bala headed to the Kainji hydropower plant’s powerhouse, where he was welcomed by the Chairman of Mainstream Energy Solutions, Col. Sani Bello (Retired), along with members of the Board and Management team.
The delegation presented the Air Chief with a documentary that showcased the company’s operational successes and the transformative projects undertaken by the Mainstream Foundation.
In response, Air Marshal Bala expressed his admiration for the company’s dedication to CSR, saying, “Regarding the Mainstream Foundation, I don’t think I have encountered a private company that has achieved so much in this area.
“You can see the impact on the lives of the people. I commend you for this outstanding act of corporate social responsibility.”
The visit concluded with a groundbreaking ceremony for the construction of the Hydropolis Free Trade Zone’s airport, a significant project aimed at boosting commerce within Nigeria and enhancing international trade in the surrounding region.
This strategic project is expected to stimulate economic activity and create job opportunities, contributing to national security by reducing unemployment.
Reflecting on his visit, Air Marshal Bala stated, “Although I have been to Kainji countless times, this is my first time experiencing the Kainji hydropower plant up close. It has been a privilege and an excellent opportunity.
The Hydropolis project, in particular, holds great potential for reducing insecurity in Nigeria by creating more job opportunities and stimulating economic growth.”
This visit underscored the essential role of the Kainji hydropower plant in the nation’s energy.
Source: https://energynewsafrica.com
Angola: Police Foil Fuel Smuggling In Lunda-Norte
Angolan Border Guard Police in the province of Lunda-Norte have thwarted the departure of 8,525 litres of fuel destined for the Democratic Republic of Congo (DRC), as part of a micro-operation underway in the district.
Of the 8,525 litres, 6,000 were diesel and 2,525 petrol, which were handed over to the General Tax Administration (AGT) as a trustee.
The micro-operation, which has been underway since the beginning of this year in Lunda-Norte, aims to combat fuel smuggling, illegal immigration, drug trafficking, human trafficking and the illegal exploitation of diamonds.
Source: https://energynewsafrica.com
OPEC’s World Oil Outlook 2024 To Be Launched In Rio De Janeiro On 24 September
The Organization of the Petroleum Exporting Countries (OPEC) has set September 24, 2024, to launch the 18th edition of its World Oil Outlook (WOO) at ROG.e 2024 in Rio de Janeiro, Federative Republic of Brazil.
The event will take place at the ‘Palco Petrobras 1’ hall, at 14:00 (Rio de Janeiro time) / 19:00 (Vienna time).
HE Haitham Al Ghais, Secretary General of OPEC, will deliver opening remarks, followed by a video and presentation highlighting the publication’s key findings.
A panel discussion and a Q&A session will be held thereafter with management and analysts from the OPEC Secretariat’s Research Division.
First published in 2007, the WOO, one of the Organization’s flagship publications, provides an in-depth review and analysis of the global oil and energy industries and offers assessments of various scenarios in their medium- and long-term development.
The publication also presents insights into key relevant issues, such as supply and demand, investment, the potential impact of policies and sustainable development, and a detailed analysis of the challenges and opportunities facing the global oil and energy industries.
HE Al Ghais said: “The World Oil Outlook has been a key reference tool for the industry since its first edition published in 2007, serving as a testament to the research quality of the Organization and those involved in producing the publication, including officials from OPEC Member Countries.
By producing this annual publication, OPEC reaffirms its unwavering commitment to enhancing data transparency and facilitating knowledge sharing in support of data-driven decision-making.”
The WOO 2024 will be available in an interactive format and PDF on the OPEC website and via the OPEC App upon publication. More details will be provided in this regard following the launch.
Source: https://energynewsafrica.com
Italian Energy Major Scraps Vietnam Energy Transition Plans
Italy’s power utility Enel has become the latest international energy investor to scrap plans for participating in the energy transition of Vietnam.
According to unnamed sources who spoke to Reuters, Enel has decided to exit Vietnam’s wind and solar markets, with one source attributing the move to a broader company reorganization.
Earlier this year, Norway’s Equinor scrapped plans to invest in offshore wind in Vietnam. Wind turbine major Orsted also revised its plans for Vietnam, pausing a large-scale offshore development amid regulatory challenges.
Enel two years ago announced plans to invest in the construction of up to 6 GW of wind and solar capacity in Vietnam.
The company, through its arm Enel Green Power, is one of the biggest wind and solar operators in the world with 64 GW of capacity.
At the time it highlighted Vietnam’s considerable potential in wind and solar generation.
Indeed, Vietnam enjoys strong winds and shallow waters but at the same time, it appears to have a complicated grid connection mechanism, which has meant that a lot of completed wind and solar projects are yet to start generating because they need to be connected to the grid first.
This is rather unfortunate because Vietnam is suffering from tight energy supplies that earlier this year swung into a shortage, causing rolling blackouts.
At the same time, the country has considerable ambitions in transition energy, planning to double its installed generation capacity by 2030.
That capacity currently stands at some 80 GW. About a fifth of the doubled capacity should be wind turbines, per plans.
Yet it is wind power that is one of the biggest problems in Vietnam. According to Reuters, the government has yet to draft regulations for the development of offshore wind power projects and it also has to finalize negotiations on the price that it would undertake to pay to wind power project operators.
Source: Oilprice.com
Nigeria: Nigeria Labour Congress President Joe Ajaero Arrested On The Way To UK
Nigeria’s Department of State Services (DSS) on Monday arrested the President of Nigeria Labour Congress ( NLC), Mr. Joe Ajaero, at the Nnamdi Azikiwe International Airport, where he was about to board a flight to the United Kingdom, UK, for an official assignment.
Ajaero, who is a former General-Secretary of Nigeria Union of Electricity Employees (NUEE) was on his way to attend the conference of the Trade Union Congress, TUC, UK, holding today.
It is not clear why he was arrested.
However, new development suggests that Ajaero was arrested for his failure to honour invitation by extended to him by the DSS.
His arrest has triggered anger among Nigeria Union of Electricity Employees(NUEE) and Nigeria Labour Congress.
In a statement issued by Acting General-Secretary of NUEE, Igwebike Dominic, the union demanded immediate and unconditional release without harm.
“We are perplexed with the information that Joe Ajaero who is the General Secretary of National Union of Electricity Employees (NUEE) and President of Nigeria Labour Congress (NLC) was whisked away by agents of the Nigerian state while on his way to the United Kingdom on the invitation of the Trade Union Congress, TUC, of Britain.
“Joe Ajaero has been detained and treated like a fugitive that he is not without access to his lawyers, families and colleagues. This brazen act of intimidation and harassment is a violation of his fundamental rights and freedom as a Nigerian citizen.
“We are demanding the immediate and unconditional release of Joe Ajaero and we are saying to the government to desist from its unscrupulous harassment of labour leaders and Nigerian workers who speak out on the crushing hardship they are battling with caused by the irresponsible acts of the government that has turned deaf ears to the groaning of the people that they are governing.
“The last we know, Nigeria is still a democratic nation, so why is the government witch-hunting and trying to silence those that speak out to protest their deplorable state of living and economic hardship?
“Joe Ajaero represents the Nigerian workers and the common man on the street. This act of the government signifies trampling on masses and is tantamount to beating a child and preventing the child from crying. An injury to Joe Ajaero is an injury to all Nigerian workers and Electricity employees in particular.
“Nigeria is our collective country, our leaders should not make us live like slaves that cannot express themselves in our country. We demand unequivocal and unconditional release of Com. Joe Ajaero without any harm meted to him. We are using this medium to put all our members on alert for further directives.”
Source: https://energynewsafrica.com
IAEA Concludes Long Term Operation Safety Review At South Africa’s Koeberg Nuclear Power Plant
The International Atomic Energy Agency (IAEA) team of experts has completed a review of long term operational safety of the Koeberg Nuclear Power Plant (NPP) in South Africa.
The Safety Aspects of Long Term Operation (SALTO) follow-up review mission was requested by the plant’s operator, Eskom.
Koeberg Units one and two started commercial operation in 1984 and 1985, respectively.
Koeberg’s Unit 1 received a license to continue operating until 2044 in July this year, and Eskom is planning to extend operation of Unit 2 until 2045.
Koeberg Nuclear Power Plant is located approximately 30 kilometers north of Cape Town, South Africa, and provides around 5 per cent of the country’s electricity, playing a vital role in reducing reliance on coal.
It is the only commercially operating nuclear power station on the African continent. Koeberg is equipped with two pressurized water reactors with a combined capacity of 1934 MW(e), making it a key component of South Africa’s energy infrastructure.
During the 3 to 6 September mission, the SALTO team’s review focused on aspects essential to the safe Long Term Operation (LTO) of both units.
The mission reviewed Koeberg NPP’s response to recommendations and suggestions made during an IAEA SALITO mission in 2022, which built upon an initial IAEA pre-SALTO mission held at the plant in 2019.
“The team observed that the plant is addressing the SALTO team’s suggestions and recommendations from the 2022 review,” said team leader and IAEA Nuclear Safety Officer Bryce Lehman. “Based on its efforts, the plant has made significant improvements in ageing management and resolved most of the issues identified in 2022. The plant is on track to complete the remaining items in a reasonable timeframe.”
The team – comprising two experts from the Czech Republic and Slovenia, and two IAEA staff members – said the plant had:
- Updated the LTO programme ensuring that all long-term operation activities are systematically planned, executed on schedule, and aligned with safety and operational standards.
- Completed the revalidation of environmental qualification for qualified cables ensuring that nuclear facility cables remain capable of safely performing under specific environmental conditions over time, despite aging or wear.
- Completed the revalidation of the Time Limited Ageing Analysis (TLAAs) for concrete structures, including the containment TLAA.
- The plant programmes supporting LTO are fully implemented for the LTO period.
- The containment monitoring system is fully refurbished and remains fully functional during the LTO period.