Nigeria: FG Signs $1.2 Billion Deal To Revamp Gas Plant For Aluminium Smelter
Nigeria has signed a $1.2 billion contract with Chinese state-owned engineering firm CNCEC to revamp a gas processing plant crucial for the country’s aluminium production, its Petroleum Ministry said.
The contract signed between CNCEC and BFI Group – the core investor in the Aluminum Smelter Company of Nigeria – is the first step towards reviving the dormant smelter, which has been plagued by years of inactivity due to legal disputes and financial issues.
Reuters report cited the Petroleum Ministry that the deal would see CNCEC resuscitate the 135 million standard cubic feet per day gas processing plant at the dormant smelter, which can produce around 300,000 tons of aluminium annually.
Minister of State for Gas Epkerikpe Ekpo said the plant’s restart would allow Nigeria to develop multiple stages of the aluminium production process and position it “as a major producer of aluminium in Africa and globally”.
The plant is expected to produce around one million tons of aluminium annually and generate up to 540 megawatts of electricity, Ekpo said.
Source: https://energynewsafrica.com
South Africa: Electricity Sector Requires About R2 Trillion Investment-Says ECSA
South Africa’s electricity sector needs about R2 trillion investment over the next ten years to be able to ensure robust infrastructure and reliable electricity supply.
This was disclosed during a briefing by the Electricity Council of South Africa (ECSA) at a the Parliament’s Electricity and Energy Committee.
ECSA and the Independent Power Producers Office were among the stakeholders that updated the Committee on the progress made on the energy front.
The CEO of the Energy Council of South Africa, James Mackay, says, “We need to invest over R2 trillion in new energy assets in the electricity sector over the next ten years.
“Just anecdotally, I would say that traditional or historic government spending in the energy space would be about 25%, maybe less.
“One can see there will be a heavy reliance on the bankability of investor confidence in private sector investment. One thing as we move into this energy transmission space, we need new institutional capabilities and skills. We really need to focus on supply chains.”
Source: https://energynewsafrica.com
US LNG Exports Poised To Hit 9-Month High
The seven largest US LNG export plants are receiving high volumes of gas, new data from LSEG revealed on Thursday, with gas flows expected to reach a nine-month high.
The data shows that US LNG feedgas is set to rise from 14 billion cubic feet per day yesterday to 14.4 billion cubic feet per day today.
Cheniere’s Sabine Pass export plant in Louisiana—the largest LNG export plant in the United States—was on track to receive 4.9 bcfd today—a three-week high.
And flows could continue to climb as the new Plaguemines has been pulling gas in test mode for two months now, LSEG data shows. Federal regulators gave Venture Global LNG permission to begin starting up its LNG equipment at Plaquemines in early September.
At the time, Venture said the first phase of the plant would begin exports later this year, with full operations resulting in 10 million tons per annum, making it the second largest single LNG facility in the U.S., behind Sabine Pass.
The share prices of LNG exporters in the United States have seen a jump following Donald Trump’s election victory, with many seeing the industry as one of the main beneficiaries of an upcoming new trade deal between Washington and Brussels.
Trump has spoken about the trade deficit that the U.S. has been running with the European Union for years and wants to change that by imposing tariffs on European imports.
The European Commission’s president, Ursula von der Leyen, responded to that threat by suggesting the EU could boost the amount of U.S. LNG it buys.
“We still get a whole lot of LNG via Russia, from Russia. And why not replace it with American LNG, which is cheaper, and brings down our energy prices,” Von der Leyen said earlier this month.
Source: Oilprice.com
Ghana: Africa Oil Week 2025 Launched In Accra (Photos)
The Republic of Ghana, which is now going to be the permanent place for the hosting of Africa Oil Week (AOW) from September 2025, officially launched Africa Oil Week 2025 on Wednesday, November 13, 2024, at the plush Kempinski Hotel in Accra, capital of Ghana.
AOW had been hosted in Cape Town, South Africa, for the past 30 years by the Hyve Group.
However, the new owner – Sankofa Events – last month announced its decision to relocate the event to Accra permanently.
AOW attracts about 1600 delegates from the oil and gas industry across the world.
Next year AOW will be held at the plush Kempinski Hotel in Accra from September 15-19.
The event will be hosted, in partnership with Africa Prosperity Network (APN).
The press launch was attended by the Minister of State at the Energy Ministry, Herbert Krapa; Chief Executive Officer of Petroleum Commission Ghana, Egbert Faibille Jnr; Managing Director of Tema Oil Refinery (TOR), Kofi Mocumbi Tagoe; Dr Kwame Baah- Nuakoh, General Manager for Sustainability and Stakeholder Relation at the GNPC; Mr. Gabby Asare Ochere -Darko, Executive Chairman Africa Prosperity Network (APN); David Ampofo, Chief Executive Officer Ghana Upstream Petroleum Chamber; Director of Sankofa Events, Paul Sinclair; Chief Executive Officer Pecan Energies, Kadijah Amoah and some players in the energy sector.
Commenting, Mr. Herbert Krapa said: “We’re fully committed to ensuring that all ministries, national oil companies, and regulators across Africa are represented at the 2025 Africa Oil Week Summit in Accra. Our goal is to make it the premier energy dialogue on the continent, setting the stage for transformative discussions and partnerships that will propel Africa’s energy future.”
Mr. Egbert Faibille Jnr., CEO of the Petroleum Commission, also contributed by stating, “The arrival of Africa Oil Week in Ghana is a landmark occasion for the continent, aligning perfectly with our vision at the Petroleum Commission to strengthen Ghana’s upstream potential and develop new frameworks that will make the national upstream more competitive.
“We will also be working with our counterparts to ensure all regional regulators are present to ensure AOW maintains a Pan African focus. We thank Sankofa Events and Paul Sinclair for partnering with the Government of Ghana to make this possible.”
A spokesperson for APN underscored the significance of this partnership, saying, “Hosting a world-class event like AOW in Accra is a proud moment for Ghana and Africa’s oil and gas sector. Over five days, the global energy community will focus on Accra, exploring new projects, frontier markets, and deal-making opportunities within the African upstream. This is Ghana’s opportunity to shine and showcase Africa’s vast energy potential.”
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Zimbabwe: ZESA Assures Power Outages Would Be Addressed
ZESA Holdings has reassured Zimbabweans that efforts are underway to address technical faults at the Hwange Power Station that have led to widespread power outages.
A statement issued by the company on Wednesday explained that the outages are also being compounded by reduced electricity generation at Kariba Power Station due to low water levels.
“ZESA Holdings would like to advise its valued stakeholders that the national power grid is currently experiencing reduced electricity generation capacity due to a technical fault at Hwange Power Station,” the statement read.
“This has been further compounded by low generation capacity at Kariba Power Station, resulting from low water levels. Our technical teams are actively working to resolve the fault at Hwange to minimize the impact on our customers. We sincerely apologize for the inconvenience caused.”
Despite current challenges, Zimbabwe’s energy capacity is set for a significant boost in 2025, with the commissioning of nine public and private power generation projects expected to add 2,690 MW to the national grid. These projects aim to reduce power outages and meet the increased demand spurred by higher industrial activity.
Key projects include the 800 MW Hwange repowering project by Indian company Jindal, scheduled for completion by December 2025. This initiative will restore all six older units at Hwange to optimal performance. Additionally, private power stations are advancing, such as the Titan project, set to produce 720 MW, the 300 MW Zhong Jin Heli project, and the 270 MW ZZE project, all in Hwange.
Beyond Hwange, other private projects include the Jinan 200 MW station in Gweru, the Xintai 100 MW station in Beitbridge, the Afrochine 100 MW station in Chegutu, and two Dingneng Solar projects contributing 100 MW each in Manhize and Mamina.
The investments represent a transformative shift for Zimbabwe’s energy sector, spurred by President Mnangagwa’s government and designed to provide long-term stability for Zimbabwe’s power grid, enabling economic growth and improving resilience against future outages.
Source: https://energynewsafrica.com
Azerbaijan President Hails Oil And Gas As ‘Gift From God’ As He Lambasts Climate Activists In COP29 Opening Speech
The President of Azerbaijan, who is hosting climate summit COP29, has hailed oil and gas as “a gift from God” as he lambasted Western media and climate activists.
President Ilham Aliyev kicked off the conference with a wide-ranging, critical speech in which he hit out at those opposed to his country’s oil and gas industries.
In his keynote address at COP29, where nearly 200 nations are negotiating global action on climate change, president Aliyev described his country as a victim of a “well-orchestrated campaign of slander and blackmail”.
Within moments, UN secretary general Antonio Guterres took to the stage to say that doubling down on fossil fuels was an absurd strategy.
But president Aliyev said: “As a president of COP29 of course, we will be a strong advocate for green transition, and we are doing it. But at the same time, we must be realistic.”
Referencing gas and oil resources, he added: “Countries should not be blamed for having them, and should not be blamed for bringing these resources to the market, because the market needs them. The people need them.”
The Azerbaijan government relies on fossil fuels for 60% of its budget and 90% of exports.
President Aliyev said it was “not fair” to call Azerbaijan a “petrostate” because it produces less than 1% of the world’s oil and gas.
He singled out the US, the world’s largest historic carbon emitter, and the European Union for particular criticism – accusing them of double standards.
President Aliyev’s speech underscored the challenge at the heart of the climate negotiations: while all nations are urged to shift to green energy sources, many, including wealthy Western nations, continue to rely on fossil fuels.
But the UK has pledged a new goal of cutting emissions by 81% by 2035.
The government said it is on a mission to “tackle the climate crisis in a way that makes the British people better off” – by investing in clean, home-grown power and cutting ties with volatile fossil fuel markets.
Over the course of the last 35 years, since 1990, the UK has already cut its emissions by 50%. Now it wants to cut them by a further 31% in just 10 years.
However, its advisers, the Climate Change Committee (CCC), warned the government is missing the plans it needs to get there.
“The good news is [the 81% target] is achievable,” said the CCC’s new chief Emma Pinchbeck.
“The less good news for government is they are behind on their [existing] targets.”
That is not because “we don’t have the technologies available, or that the economics don’t work”, but because we “haven’t had a delivery plan” from the government to get there, she said.
The UK’s pledge puts more pressure on other developed nations and host country Azerbaijan to publish their own plans, known in UN jargon as NDCs [nationally determined contributions].
Source: Sky.com
South Africa: Rosatom Presented Innovative Technological Solutions At African Energy Week 2024
Rosatom State Corporation’s delegation took part in the African Energy Week 2024 (AEW 2024), the largest energy conference on the African continent that ended on 8 November in Cape Town (South Africa).
Rosatom participated in the event for the second time, becoming this year’s gold sponsor.
The forum brought together more than 5,000 participants including the continent’s largest energy companies, international investors, and heads of state agencies from various countries.
Rosatom’s speakers participated in following AEW 2024 main business programme events: “Nuclear Arrival: Baseload and Flexible Energy Supply for Industrial Development and Clean Energy Transition”, “Russia-Africa Energy Partnerships” and “The Fundamental Role of Logistics in Strengthening Supply Chains” sessions.
In addition, the company also organised its own panel discussion “From Vision to Action: Navigating a Just Energy Transition for Africa through Green Innovation”.
While participating in the business programme, Rosatom also presented a stand showcasing the latest developments in nuclear technology.
Rosatom’s Electric Power Division conducted a series of 360° virtual tours of the Novovoronezh nuclear power plant (NPP) and a floating nuclear power plant (FNPP) at the stand on 5-7 November.
The tours were accompanied by detailed commentary, including information on the main project’s features and equipment.
The corporation also presented an interactive augmented reality application “Nuclear Power Plant with VVER-1200 Technology” and a touch screen game on uranium mining with in-situ recovery (ISR) method that allowed to learn about the process personally.
As a part of the forum, JSC TVEL (the managing company of Rosatom’s Fuel Division) and South African AllWeld Nuclear and Industrial signed a memorandum of cooperation in the field of decommissioning and radioactive waste (RW) management.
“Rosatom’s participation in the African Energy Week 2024 highlights our commitment to building a sustainable energy future for Africa.
“We are ready to share our advanced technologies and expertise to help countries on the continent develop safe, reliable and clean energy. Together, we can ensure Africa’s prosperity and preserve the planet for future generations,” Vadim Titov, Rosatom International Network General Director, commented.
Source: https://energynewsafrica.com
Libyan Oil Output Under Threat Amid Fresh Protests
Protesters shut down oil distribution valves in response to the kidnapping of a senior intelligence officer, for which they blame the government in Tripoli.
The valves connect the Sharara field, Libya’s largest, and the El Feel field, to a refinery in Zawya, media reported.
The facility has a processing capacity of 350,000 barrels daily or roughly a third of Libya’s oil production.
Brigadier General Mustafa al-Whayshi, director of Libya’s Central Security Department, a unit of the intelligence services, was kidnapped earlier this week. The kidnappers have not declared themselves and the government, according to the protesters, is not responding appropriately to the official’s disappearance.
Intelligence officers, however, issued a statement, saying that AL-Whayshi’s kidnapping was likely related to “ongoing investigations into cases impacting Libyan national security.”
The North Africa Post noted in a report that kidnappings of government officials were a frequent occurrence in Libya during investigations into corruption that involved members of the numerous militias in the country.
The new oil production disruption comes a month after output recovered following yet another outage caused by a field blockade. The blockade was imposed by the Libyan National Army, a militia affiliated with the eastern government in Tobruk, which had a disagreement with the Tripoli government about the new central bank governor.
After the dispute was settled by the two rival governments, the blockade was lifted and production ramped up to 1.3 million bpd in mid-October. In further good news for the country’s oil industry, Eni and BP returned there after years of absence amid the unstable political environment.
Two other Western energy majors are also returning to Libya, according to the National Oil Corporation. Repsol, the Spanish operator, was preparing to start drilling in the Murzuq Basin in the coming weeks, and Austria’s OMV was also preparing for drilling in the Sirte Basin, the Libyan state energy company reported in late October.
Source: Oilprice.com
Ghana: Ada District ECG Bemoans Network Interference
The Ada District of the Electricity Company of Ghana Limited has bemoaned the constant unauthorised involvement of certain individuals who keep accessing the electricity distribution network for whatever reason.
This, the District says, ends up causing faults and outages, as well as damage to fuses and transformers, thereby affecting power supply to consumers.
The District is, therefore, cautioning the public to avoid such inteference as it could result in electrocution and damage to property.
The Ada District Manager of ECG, Ing. Louis Harlley Nutsugah, made this call while interacting with a cross-section of media persons on Monday, 11th November 2024, at the Ada Office.
“We have informed the Assembly Members and other opinion leaders in the various communities to help us advise their people to stop such inteference,” he indicated.
“We’re also on the lookout to get any such person and prosecute them for unauthorised entry to our network,” he added.
Ing. Alfred Owusu, who is the District Engineer overseeing the communities under the ECG Ada District, said, “In some of the instances, fuses are changed by these persons who decide to do these on their own. The changes end up causing damage to our transformers because of over fusing.”
Should this keep happening, customers will not have supply for a while, and the company now has to spend resources to replace the damaged equipment.
The District Management team also made an appeal to the public in general, asking them to exercise restraint and not call on electricians and other technicians to fix outage problems for them. Ing Nutsugah mentioned that “it is our commitment to ensure power supply and to fix faults as soon as possible.
“However, there are times when the faults team could be working at one place and can not immediately show up at another place. We also have distance to be covered before getting to customers, so we are pleading for restraint and patience and not asking technicians to get into the network to supposedly fix problems.”
The Manager also pleaded with customers to pay their bills on time and not pile up debt which then becomes difficult to pay.
Source: https://energynewsafrica.com
South Africa: Oil & Gas Companies Will Drive Energy Transition – Dr. Oppong
Petroleum Economist and Chief Executive Officer of the Association of Oil Marketing Companies in the Republic of Ghana, Dr Riverson Oppong, has noted that climate change and sustainability are not new topics for the oil and gas industry and cited the peak oil concept as a classic example.
The peak oil concept refers to the hypothetical point in time when global oil production reaches its maximum rate, after which production will irreversibly decline.
This concept is based on M. King Hubbert’s 1956 model, which predicted that US oil production would peak around 1970.
To Dr Riverson Oppong, the argument about energy transition should revolve around Just Energy Transition and not asking Africans to abandon their oil and gas resources.
Speaking during the just-ended African Energy Week in Cape Town, South Africa, Dr Oppong noted that oil and gas companies like BP, Shell, TotalEnergies and Saudi Aramco have already taken significant steps towards energy transition by implementing initiatives aimed at reducing emissions and fostering sustainable practices across the continent.
Currently, BP is investing in solar and wind projects in Egypt, South Africa and Morocco, while Shell is also developing solar and wind farms in South Africa, Nigeria and Morocco.
While TotalEnergies is expanding solar and wind energy in South Africa, Morocco and Senegal, Saudi Aramco, on the other hand, is partnering on renewable energy projects in Egypt in line with Saudi Arabia’s Vision 2030 agenda.
Touching on emissions, Dr Oppong noted that the transport sector alone is responsible for nearly 50% of emissions, driven not only by fuel type but also by the age and efficiency of vehicle engines.
To tackle these emissions, he proposed several solutions, including the adoption of 𝗰𝗼𝗺𝗽𝗿𝗲𝘀𝘀𝗲𝗱 𝗻𝗮𝘁𝘂𝗿𝗮𝗹 𝗴𝗮𝘀 (𝗖𝗡𝗚), 𝗯𝗶𝗼𝗳𝘂𝗲𝗹𝘀, 𝗹𝗼𝘄-𝘀𝘂𝗹𝗳𝘂𝗿 𝗳𝘂𝗲𝗹𝘀, 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰 𝘃𝗲𝗵𝗶𝗰𝗹𝗲𝘀, 𝗲𝘁𝗰.
He also addressed home-cooking practices, advocating liquefied petroleum gas (LPG) as a cleaner fuel alternative.
Delving into what drives our choice of fuels, known as the 3 A’s: 𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗔𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗔𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆, he highlighted how demand for energy would inevitably increase in Africa due to population growth.
“It’s my belief that through concerted efforts and the implementation of forward-thinking initiatives, we can create a sustainable energy future for Africa,” he said.
Source: https://energynewsafrica.com
Kenya: KenGen Revives Muhoroni Power Station To Stabilize Supply In The Western Region
The Kenya Electricity Generating Company (KenGen) has revived the Muhoroni gas turbine plant to stabilize power supply in the western region.
This has injected an additional 60 megawatts into the national grid bringing to an end perennial power blackouts in the area.
Energy Cabinet Secretary (CS) Opiyo Wandayi said the move was part of the government’s wider plan to stabilize supply in the region to spur economic development.
Speaking during a tour of the Sondu-Miriu power plant in Kisumu county, the CS said the government was undertaking major projects to scale up power generation and supply in the region.
He pointed out the construction of Sondu-Ndhiwa line which is in formative stages saying once completed it will scale up supply in the area for domestic and industrial use.
The Awendo-Masaba power line, he said, has been completed and will be powered soon to serve thousands of households in the area.
Plans to upgrade Gogo Power Station in Migori county from 2 megawatts to 8.6 megawatts, he said were at an advanced stage with the construction of a modern Sub-Station at Thurdibuoro set to guarantee uninterrupted power supply.
“We now have a total installed capacity of 3,200 megawatts in the country. Our visit here today is routine as we seek to modernise our infrastructure to scale up generation and stabilize supply,” he said.
Wandayi further announced plans to establish an irrigation scheme on lower River Miriu in Kisumu to scale up food production.
The CS said the irrigation component was part of the Sondu Miriu Power plant but has not been actualized.
His ministry, he said, was bringing together the Ministry of Agriculture, the National Irrigation Authority (NIA) and the county government of Kisumu to see how best to fast track the project.
“This initiative is going to greatly improve the economy of this area. That is why in the spirit of one government we are bringing together all the relevant departments and agencies to ensure that it takes off,” he said.
Kisumu Deputy Governor Dr. Mathews Owili said the Irrigation project was at the heart of the county government adding that the support from the ministry and other stakeholders to actualize it was welcome.
Most of the food consumed in Kisumu, he added, comes from other regions adding that once the irrigation project takes off the area will become food sufficient.
Source: Kenya News Agency
Russia Considers Lifting Gasoline Export Ban
Russia’s energy ministry believes it could be possible to lift the gasoline export ban, currently in force until the end of the year, considering that domestic fuel prices are stable, Russian Energy Minister Sergey Tsivilyov said on Wednesday.
Russia could lift the export restrictions now because fuel prices and the fuel market in Russia are stable, the minister told reporters today, as quoted by Russian news agency Interfax.
In the middle of August, the Russian government said that Moscow is extending its ban on gasoline exports from October to the end of December 2024, as it seeks to keep domestic supply stable amid seasonal demand and scheduled repairs at refineries.
In the autumn of 2023, Russia banned exports of diesel and gasoline in an effort to stabilize domestic fuel prices in the face of soaring prices and shortages as crude oil rallied and the Russian ruble weakened. Prior to implementing the ban, Russia had raised mandatory supply volumes for motor gasoline and diesel fuel to deal with a supply crunch.
“Everything is stable with prices, the situation on the market is stable, so restrictions can be lifted – they were introduced in the first place to stabilize prices on the domestic market,” Tsivilyov was quoted as saying today.
At the end of September, Russian Deputy Prime Minister Alexander Novak said that Russia could lift its ban on gasoline exports if a fuel surplus emerges on the domestic market.
“Exports are always permitted if there is a surplus of the product on the domestic market. For example, we do not have a ban on exporting diesel fuel, because there is a surplus, and it is sold on both the domestic market and for export,” Novak said in September.
Currently, the government is not concerned about the domestic supply situation as there are sufficient petroleum products on the exchange and stable prices at gas stations, Russia’s top oil official said at the time.
Source: Oilprice.com
Nigeria: TCN Security Guards Flee As Armed Men Invade Obajana Transmission Substation And Damage Equipment
The Transmission Company of Nigeria (TCN) has reported that armed men invaded the construction site of its ongoing 330/132/33kV transmission substation in Obajana, Kogi State.
The attack occurred on the night of November 12, 2024, at approximately 11:55 PM.
In a statement issued by Ndidi Mbah, Public Affairs Manager of TCN, the power transmitter said reports from security personnel at the site noted that the assailants opened fire indiscriminately, causing the guards to flee.
During the attack, a 150MVA 330/132/33kV power transformer, already positioned on its plinth, was struck, resulting in a burst radiator.
In response to the incident, TCN said it is evaluating the level of damage in collaboration with the contractor managing the project.
“This incident is part of a broader pattern of vandalism targeting transmission infrastructure across the country.
“The new Obajana Transmission Substation, which is designed to be a 1X150MVA 330/132/33kV capacity substation will significantly enhance power supply to Kogi State and surrounding areas upon completion,” the statement concluded.
Source: https://energynewsafrica.com
Nigeria Ends Decades Of Petroleum Importation
Nigeria has announced that it had finally ended the age-long practice of petroleum importation into the West African nation.
The development is expected to save Nigeria as much as $10 billion in hard currency in-country annually, as the national oil company said it now buys from the 650,000 barrels per day Dangote Petroleum Refinery located in Lagos.
Group Chief Executive Officer of Nigerian National Petroleum Company Limited(NNPC Limited) Mr. Mele Kyari, disclosed this in Lagos, while delivering his keynote message at the ongoing 42nd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).
The announcement came amid another cheery news by the Independent Petroleum Marketers Association of Nigeria (IPMAN) that it had struck a deal to buy products directly from the $20 billion Dangote facility.
The previous arrangement was for the independent marketers to buy from the NNPC and not from the Dangote Refinery, a practice the oil sellers had vehemently opposed.
But drawing strength from the Domestic Crude Oil Obligation (DCOO) as stipulated in the Petroleum Industry Act (PIA) 2021, Kyari also said all the oil producers in the country must supply crude to the four NNPC refineries when they come back on-stream.
He disclaimed assumptions that the national oil company was sabotaging local refineries by refusing to sell crude oil to them.
Kyari profiled NNPC as a proud part owners to the Dangote Refinery, explaining that the company saw an opportunity in the $20 billion refinery as a clear market for at least 300,000 barrels per day of its production, which will enable it to avert being caught in the emerging shrinking market for crude oil.
“Oil is found in very many unexpected locations across the world and people have choices. And therefore, we saw an opportunity to now supply to not just Dangote, but every refinery that operates in the country. So, it’s a well informed business decision. Therefore, from day one, we knew that it was to our benefit to supply crude oil to domestic refineries.
“So, we don’t need to be persuaded. We don’t need anyone to talk to us. There is no need for any pressure from the streets for us to do this. We are already doing this”, Kyari stated.
Highlighting the implications of the pressure for oil producers in Nigeria to supply crude to local refineries and in naira too, Kyari said Nigerian crude is a premium type of crude that attracts premium price
In the global market, he explained that refiners buy Nigerian crude to blend with their dirtier crude to process, adding that only few refineries take Nigerian crude for direct processing because of its expensive and high premium nature.
Kyari disclosed that the NNPC had stopped importing refined petroleum products in line with the company’s support to local processing of all crude produced in the country.
Kyari stated: “And therefore, I believe strongly also that we must process all the crude that we produce in the country up to the optimum. And we will do everything possible to make sure that we domesticate this. And today, NNPC does not import any product. We are taking wholly from the domestic refinery.”
He said the company was also working jointly with the federal government to manage the issue of pricing, which is one of the implications of sourcing all feedstock supply from the domestic market.
He confirmed that substantial work had been done around that, adding that it will no longer be an issue.
He further disclaimed what he described as issues on the streets that the NNPC does not want to sell crude to domestic refineries in naira and that it’s a form of sabotage.
“As a matter of fact, it makes no difference to us because if you sell crude to domestic refinery in naira and you buy product in naira from a domestic refinery, it’s a netzero game. You lose nothing. Otherwise, whatever you do, you still have to source for FX because you have to import,” he added.
Reminding other oil producers in the country that the domestic crude oil obligation applies to both NNPC and them, Kyari told the producers that they must supply crude to the four NNPC refineries when they return to production.
He clarified that selling crude to local refineries in naira didn’t mean losing the value of the product but that the only difference was that the foreign exchange gap will be removed in the process to boost local currency and country’s economy.
Kyari explained: “And for those of us in the upstream, don’t forget that we have domestic crude oil supply obligation. It is not NNPC-only obligation. You must understand this. But the DCOO doesn’t mean a loss in value. It says sell it at market price, at commercial value.
“It also serves the best interest of the businesses here, it also shows commitment beyond the talk. So, let’s all not forget that everyone in the industry contributes to this.
“Which means, and to be very practical, when NNPC refineries start working, we will come to you and tell you that you must contribute to supply to these refineries. It’s in the law. It doesn’t have to come from NNPC. And we will make sure we don’t fight with anyone. But if we don’t find our oil, we come to you.”
On ensuring gas delivery to the domestic market, he complained that only NNPC has been left to carry the burden of building the entire gas delivery infrastructure till date, as all the projects were on the balance sheet of NNPC.
He said the company has accepted to carry the burden to guarantee energy security for the country as mandated by the PIA.
In promotion of the Compressed Natural Gas (CNG) penetration in the country, Kyari confirmed that by the first quarter of 2025, at least 12 mother CNG stations will be available in the country.
In addition, he revealed that the company was building a mini Liquefied Natural Gas (LNG) plant in an unspecified location in the country to deliver gas into the market.
The facilities, he stated, will also sustain the growth of CNG delivery to the domestic market and equally make gas available to mid power plants and gas-based industries in the short term.
Also speaking at the event, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe, disclosed that Nigeria’s oil production has increased to 1.8 million barrels per day.
In his speech delivered by the Executive Commissioner, Development and Production, NUPRC, Mr. Eronense Amadasu, Komolafe said the country’s oil production would rise further to 2 million bpd by December this year.
He added that the framework in pursuit of the Project 1 Million BPD championed by the commission was currently under development.
The project which aimed to increase Nigeria’s oil production by an additional one million barrels in the next 12 to 24 months was launched last month by President Bola Tinubu.
The commission chief executive however faulted the perception that the International Oil Companies (IOCs) operating in Nigeria were leaving the country, saying the multinationals were only rationalising their portfolios in the wake of the changing energy landscape.
He said NUPRC had put in place robust divestment guidelines to ensure a smooth transition, reiterating that the commission is currently auctioning 31 oil blocks spreads across the onshore, shallow water and deep offshore terrains and that the process was going on smoothly.
Also speaking, the Executive Secretary of NCDMB, Mr. Felix Ogbe, who also spoke at the NAPE conference, said with 54 per cent local content already attained under the 10-Year Strategic Roadmap, the organisation was pushing to achieve the targeted 70 retention by 2027.
In line with the Presidential Executive Orders on oil and gas, which border on the contracting cycle, Ogbe, who was represented by the General Manager, Corporate Communications and Zonal Coordination, Mr. Dan Kikile, said the agency has reduced the approval timelines to 60 days.
He enjoined industry operators to continue paying their local content levy to enable NCDMB continue to fulfil its mandate and responsibility for the industry.
Meanwhile, following its recent meeting with Aliko Dangote and members of his top management staff in Lagos, the leadership of IPMAN, on Monday announced major milestones achieved during the event.
Addressing some members of the press in Abuja on Monday, National President of IPMAN, Abubakar Shettima, stated that the Dangote Refinery had obliged IPMAN to lift petrol, diesel and kerosene directly for onward supply to its depots and retail outlets.
According to the IPMAN president, this new arrangement with the Dangote Refinery will ensure steady and ceaseless supply of petrol products all over Nigeria at an affordable rate for Nigerians also.
He said: All IPMAN members should fully support the Dangote Refinery, as it’s the ideal thing to do considering the monumental benefits of backward integration and the medium to long term impact it will have on the Foreign Exchange markets in Nigeria
“IPMAN members nationwide should rely on the Dangote Refinery and Nigerian Refineries for their white products, as this will translate into ensuring more job opportunities in Nigeria, as well as signify that total support for President Bola Tinubu’s renewed hope agenda,” he added.
On CNG, Shettima called on all members of IPMAN to begin to put all machinery in place for a successful transition of the federal government’s plans to initiate CNG refill stations in all our outlets.
“Truly there is no doubt that CNG has the potential to rejuvenate our economy for a better life for Nigerians, and IPMAN is ready to give her all to support the CNG initiative,” he added.
Source: https://energynewsafrica.com