The Petroleum Hub Development Corporation, the agency spearheading the establishment of petroleum hub in the western part of Ghana, has signed a $12 billion agreement with a consortium comprising Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd for the development of the first phase of the project.
This project aims at positioning Ghana as the destination for energy trading in the West Africa sub-region.
This agreement is a critical step towards President Akufo-Addo’s vision of Ghana becoming a regional hub for petroleum refining, storage and distribution.
The Petroleum Hub project is expected to accelerate the growth of Ghana’s petroleum downstream sub-sector and make it a major player in the economy, creating jobs, attracting foreign direct investment, and enhancing energy security.
The hub, which is a private sector led, will have three (3) refineries, five (5) petrochemical plants, 10 million cubic metre storage facilities, and two (2) jetties with multiple berths.
The ancillary infrastructure and services include a power plant, rail and road network, Liquefied Natural Gas (LNG) terminals, pipelines, water treatment facilities, repairs & maintenance services, nautical services, waste treatment facilities, logistics, security & emergency response centre, residential & commercial facilities, light to medium industrial area and recreational centres.
Other services and infrastructure, such as a state-of-the-art laboratory for petroleum products, fabrication workshop, metering and calibration services, equipment supplies, logistics services, remote monitoring & diagnostics, lubricant storage & supply, and inspection & certification services, will also be available.
The project is estimated to cost about US$60 billion.
The development of the Petroleum Hub project will be executed in three phases, between 2024 and 2036, with the first phase focusing on developing a 300,000 barrel per day (bpd) refinery, 90,000 bpd petrochemical plant, 3 million m3 storage facility, jetty and port infrastructure.
The project is expected to transform Ghana’s economy and create over 780,000 direct and indirect jobs by 2036.
The signing of the agreement was witnessed by Ghana’s Minister for Energy Dr Matthew Opoku Prempeh and some Members of Parliament in the Western Region.
Commenting, Dr Prempeh emphasised the relevance of the hub to develop Ghana’s potential and revenue drive.
“This hub has been long time coming, and I am excited that today, we can do the signing for work to begin in earnest.
“We are hopeful that all the hard work we put in will yield the results that we desire. We are determined to achieve this goal, and we will continue working to see this materialise,” he said.
He also gave an assurance about adding value to Ghana’s natural resources for the benefit of all.
The Paramount Chief of Western Nzema Traditional Council, Awulea Annor Adjaye III, who doubles as Chair of the Petroleum Hub Development Corporation, charged the corporation to ensure wealth creation for the people of Jomoro and Ghana at large.
“We as leaders hold in trust these natural resources for our people, so every time we have to use them, we must ensure our people are the main beneficiaries of them,” he stressed.
Source: https://energynewsafrica.com
Vivo Energy Ghana, the Shell Licensee, has launched 2024 Safety Day at its head office in Cantonment, Accra, capital of Ghana.
The Safety Day, a cherished tradition of the business, underscores the company’s commitment to Health, Safety, Security, Environment and Quality (HSSEQ) practices while celebrating its safety achievements and milestones.
With a vision of becoming the leading and most respected energy business in Africa, we remain committed to ensuring the safety and security of our employees, partners, customers and communities.
The focus for this year’s Safety Day is on our HSSEQ Management System (MS), an integral part of our commitment to achieving Goal Zero- no harm to people and minimising our impact on the environment.
Speaking at the launch, the Managing Director of Vivo Energy Ghana, Kader Maiga, emphasised the company’s collaboration with regulatory bodies like the National Petroleum Authority (NPA), Ghana Standard Authority (GSA), Environmental Protection Agency (EPA), and the Association of Oil Marketing Companies (AOMC) to ensure compliance with procedures, standards, environmental sustainability, and industry best practices.
“I wish to throw more light on our Goal Zero Days (4,900 days/over 13 years) – the number of days without a recordable incident in our operations as a company. We could only achieve this with the help of our employees, third party contractors, site attendants, customers and regulatory bodies by complying with our safety procedures, standards, and regulations”, he said.
The Special Guest, CEO/Industry coordinator of the Association of Oil Marketing Companies (AOMC), Dr. Riverson Oppong, commended Vivo Energy Ghana for its proactive approach to safety, noting, “It is heartening to see a company that prioritises the well-being of its employees and partners. AOMC is immensely proud to partner with Vivo Energy Ghana and all its members in the relentless pursuit of Goal Zero through collaborative efforts to achieve a future where safety and sustainability are the cornerstones of every operation within the downstream petroleum industry.”
Representing Vivo Energy Ghana Transporters, the CEO of S. O. Frimpong Transport Limited, Randy Frimpong, in his goodwill message applauded the leadership and management of Vivo Energy Ghana for their dedication to a proper way of doing business which is a safer alternative. “We are happy to say that all transporters of Vivo Energy Ghana, through the adaptation of its HSSEQ Management System (MS), are now professional companies and we are also able to share knowledge and best practices to others in the industry,” he said.
Vivo Energy Ghana pledges to integrate safety into every aspect of its operations and commits to staying informed and adhering to safety protocols to safeguard its colleagues, families and communities. Together we will achieve Goal-Zero and set a benchmark for others to follow.
Kenya has proposed to introduce excise duty on all imported electric motorbikes other than motorcycle ambulances.
This move by William Samoei Ruto’s administration has been viewed as contradictory to the government’s earlier policy on promoting e-mobility.
The proposal is contained in the Finance Bill 2024 which is aimed to amend Part 1 of the first schedule to the Excise Duty Act to remove excise duty on petrol engine motorcycles, according to a report by Kenya Star.
Nine months ago, President William Ruto launched electric bikes in Mombasa in a bid to accelerate e-mobility adoption.
In Kenya, electric motorcycles valued at KSh150,000 are currently not subject to excise duty.
This was one of the incentives put in place by the state to empower the youth by lowering the operational costs in the ‘boda boda’ industry.
The Deloitte 2024 Budget Analysis report deemed the decision by the government counter-effective as this would lower the demand for electric bikes.
“The proposal to remove excise duty on petrol-powered motorcycles may increase the demand for petrol motorcycles and derail the Government’s policy on electric motorcycles,” said the report.
The latest data from the Clean Air Fund report on Nairobi and air pollution shows transport caters for 40 per cent of pollution followed by biomass fuels at 25 per cent.
This further shows the need to find solutions to curb air pollution by automobiles in large cities, especially Nairobi whose population is 4.3 million according to the 2019 census.
Source: https://energynewsafrica.com
The World Bank has approved a $250 million credit from the International Development Association (IDA) and a $10 million grant from the Energy Sector Management Assistance Program for a 4-year Ghana Energy Sector Recovery Program for Results (PforR).
The PforR will support Ghana’s Energy Sector Recovery Programme (ESRP) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.
Electricity distribution losses are high in Ghana due to a low collection rate and below-cost recovery tariffs, undermining the operational and financial performance of energy utilities in the country.
The Government of Ghana transfers about 2 percent of GDP annually to cover the energy sector’s financial shortfall.
“Through this important results-based financing, the World Bank is committed to supporting the recovery of Ghana’s energy sector and its financial sustainability.
“The operation aims to strengthen revenue collection and improve the quality of energy supply, including through investments in prepaid metering and in the commercial and meter management systems of distribution utilities,” said Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone.
“The PforR aims to reduce the cost of electricity service provision by improving the economic dispatch of generation and by strengthening the commercial and operational performance of distribution utilities,” said Dhruva Sahai, Program Leader for Infrastructure.
The Clean Cooking Component of the Program will increase the access of Ghanaian households, schools, and businesses to Liquified Petroleum Gas for domestic and commercial use.
The PforR will provide direct incentives to subsidize the cost of stoves and accessories – excluding cylinders – for first-time domestic users, commercial caterers, and second-cycle schools.
Through these efforts, the Program aims to increase women’s access to clean cooking solutions, reduce time poverty, reduce health risks from smoke exposure from charcoal stoves, and improve women’s income generating opportunities and employability.
Minister for Finance, Dr Mohammed Amin Adam also said, “the Government of Ghana is grateful to the World Bank for their support in the attainment of the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy).
“Our quest to achieve financial viability in electricity distribution and increasing access to clean cooking solutions is essential for building sustainable energy systems that support economic development, improve public health, and protect the environment while promoting energy access and equity for all”.
He added “our access to sustainable energy is not just about powering homes and businesses, it’s about empowering communities, protecting the environment, and fostering inclusive and sustainable development”.
Source: https://energynewsafrica.com
The Republic of Guinea has signed a Memorandum of Understanding (MoU) with Russia to cooperate on the development of floating nuclear power to deal with Guinea’s electricity supply challenges.
The MoU was signed on June 7, 2024, during the St. Petersburg International Economic Forum between the Mechanical Engineering Division of Rosatom, the state atomic corporation of Russia, and the Government of Guinea.
The signing was witnessed by Andrey Nikipelov, Deputy Director General for Mechanical Engineering and Industrial Solutions of ROSATOM, and Igor Kotov, Head of Rosatom’s Mechanical Engineering Division.
Under the reached agreements, the parties will explore the implementation of floating power units in the Republic of Guinea and work on the project’s terms and conditions.
The signed memorandum supplements the roadmap of Rosatom’s Mechanical Engineering Division for the production of advanced equipment for the new generation of the nuclear industry and demonstrates the high global interest in our technology.
Commenting, Vladimir Aptekarev, Deputy Head of ROSATOM’s Mechanical Engineering Division, said: “The cooperation involves joint work on developing a power supply solution both to industrial and domestic consumers in the Republic of Guinea, by deploying floating nuclear power units with RITM-200 reactors, which have already proven efficient.
As you know, the power supply issue in the African region is urgent, and our main task is to provide a fast, reliable, and environmentally friendly solution for our partners.”
Source: https://energynewsafrica.com
The UK could be producing 30% more oil from the North Sea in 2030 than previously expected if investments worth some $25 billion (20 billion pounds) are deployed for that purpose.
This is according to Offshore Energies UK, formerly Oil and Gas UK, the industry group that earlier today published its Economy and People Report 2024.
In the report, the authority also said that with the right political support investment in what it calls offshore energy could rise to over $25 billion from $16.5 billion in 2023.
The offshore energy that OEUK talked about included oil and gas, hydrogen, carbon capture, and offshore wind power.
“With supportive policy, the industry can deliver enduring economic value, scale up our supply chain capacity, sustain skilled jobs, deliver energy security, all while delivering on our climate goals,” Offshore Energies UK said.
The UK is currently producing some 1.2 million barrels of oil equivalent but this will fall steeply to just 700,000 barrels daily by 2030, according to forecasts by the North Sea Transition Authority—the industry regulator, as cited by Bloomberg.
According to Offshore Energies UK, the decline could be softened to 900,000 bpd if investments keep flowing into the industry, a 30% increase on current estimates.
Yet for that to happen, oil and gas operators in the North Sea need a hand from the government.
They are, however, unlikely to get that hand if the next government is Labour, which appears to be the case per recent polls that predicted “political extinction” for the Conservatives.
There has been little difference on energy transition matters between Labour and Conservatives but the latter have signaled some support for continued oil and gas production, and even new exploration licenses.
Labour, on the other hand, plans to hike taxes for the industry even higher if it wins the vote, and it also promised its voters to cancel new exploration licenses.
In a further blow to the industry, a Labour government would scrap a tac inventive dubbed investment allowance that exempts profits from taxes as long as they are reinvested in production.
Source:Oilprice.com
Zambia’s power utility company, Zesco Limited, has restored power supply to parts of the country that experienced supply interruptions caused by the South African Power Pool (SAPP) interconnected network
Parts of Zambia experienced a power cut at about 17:05 hours on Monday.
The corporation, in a statement, assured its customers that it was doing its best to rectify the problem and restore power supply to all affected areas.
In the latest update on the situation, the power utility notified Zambians that power supply had been restored to Northern, Muchinga, Luapula, Eastern and Central provinces at 19:17 hours.
“ZESCO expressed regret about the inconvenience caused by the unplanned power supply interruption,” the statement ended.
Source: https://energynewsafrica.com
Nigeria’s national oil company, NNPC Limited, is pushing for the establishment of a specialised court to deal with persons who would be caught involved in crude oil theft and vandalism of crude oil pipelines.
The company’s Group Chief Executive Officer, Mr Mele Kyari, believes that it is about time the country’s judiciary
supported in tackling the twin challenges of crude oil theft and pipeline vandalism.
Kyari made the call in a speech read for him at the National Judges’ Capacity Building Workshop on the Petroleum Industry Act (PIA) 2021, in Abuja, last week, stating that the gains of the PIA have been severely undermined by crude oil theft and pipeline vandalism.
In light of this, he urged the judiciary to consider the creation of a special court to try offences related to crude oil theft and pipeline vandalism or granting accelerated hearings to such cases.
According to him, the role of the judiciary was critical to the success of the efforts of the various security arrangements put in place by the NNPC, law enforcement agencies and other stakeholders in the industry.
“In particular, is the recommendation that a special court be created to try those offences as they hinge on our survival as a country and/or for such trials to be conducted under an accelerated hearing process by the issuance of Practice Directions to that effect, with concomitant sanctions to deter would-be offenders,” Kyari stated.
The GCEO also called on the judiciary to accelerate hearings on criminal cases in their courts, through timely determination of the criminal charges and imposing adequate punishments and sanctions on culprits to serve as deterrence to others.
He said that NNPC remains committed to collaborating with all relevant stakeholders to ensure the successful implementation of the PIA, adding that “together, we can ensure that the benefits of our natural resources are maximised for the economic and social development of our country.”
Kyari also commended the Chief Justice of the Federation, Olukayode Ariwoola, and the organisers of the workshop for extending the invitation to him and the opportunity to deliver a goodwill message at the workshop.
Source:https://energynewsafrica.com
A Tamale District Court has sentenced a man to a six-month jail term for illegally connecting power and consuming it freely from the Northern Electricity Distribution Company (NEDCo).
The convict, Wahab Shiraz, will also pay a fine of 500 penalty units, equivalent to GH¢6,000 to the state.
The convict who is a resident of Bulpella, a suburb of Tamale, is also expected to pay GH¢10,096.55 to the Northern Electricity Distribution Company (NEDCo), an estimated value of the electricity he had stolen.
The court presided over by Justice Derrick Annan, stated that should Shiraz fail to pay the amount owed to the state, he would face an additional seven months in prison.
Wahab Shiraz pleaded guilty to the charge of interference with the “electricity distribution system” under Rule 41 (2A) and 1 (6) of the Electricity Supply and Distribution Rules 2005 (L.I.1816).
His illegal activities were uncovered during NEDCo’s Mass Revenue Mobilisation Exercise in December 2023.
After receiving an illegal connection notice and failing to report for investigation, Shiraz’s case was referred to the Tamale police, leading to his prosecution and conviction.
Following the sentencing, NEDCo’s legal representative, Ms Esther Yirbom, urged the public to avoid illegal power connections and instead, take advantage of NEDCo’s resolution options.
She highlighted that suspects who cooperate by paying for stolen power and signing a bond of good behaviour might face reduced penalties if their cases go to court.
Ms Yirbom emphasised that while these measures do not absolve the offence, they could mitigate the severity of punishment.
Source: https://energynewsafrica.com
UK’s Liberal Democrats say fuel duty relief should be expanded to 20 new areas to support motorists in rural communities.
Lib Dem leader Sir Ed Davey said “a real rescue plan” is needed to support rural communities struggling with “outrageous pump prices”.
The party suggested Cornwall, Cumbria, Shropshire, Yorkshire in England, and rural parts of Scotland and Wales should be included in the scheme.
The scheme currently applies to 21 areas across the country including the Isles of Scilly, three postcode districts in England, and the Highlands and Orkney and Shetland in Scotland.
The Liberal Democrats earlier pledged in its manifesto to help motorists in rural areas who face higher fuel costs by expanding rural fuel duty relief – but have now expanded on their plans.
Fuel retailers can apply for relief of 5p per litre of petrol or diesel, which is then passed on to motorists through reductions in price at the pump.
Mr Davey said: “People in rural areas have been clobbered by the cost-of-living crisis and the Conservatives have just not done enough to support them.
“The Conservatives have let the cost-of-living crisis hit rural communities hard.
“They have ignored Liberal Democrat calls to expand rural fuel duty relief, left roads to crumble and cut public transport options, including rural bus routes.”
The Conservative government brought in a temporary cut to the overall rate of fuel duty in 2022, and it has remained in place since then, with the party’s manifesto mentioning that it is something which has been “prioritised”.
The Liberal Democrats said that their plans would cost an additional £7m per year by the end of the next Parliament.
It has also backed calls for a Pumpwatch scheme so drivers can compare fuel prices in different areas.
Source:BBC.com
Some unidentified gunmen have attacked soldiers said to be guarding the major Niger-Benin oil pipeline, resulting in the death of six of the soldiers.
Three security sources confirmed the attack, which took place between the villages of Salkam and Tibiri in Niger’s southeastern Dosso region.
According to Oilprice.com, the assault was targeted at a patrol unit assigned to protect the pipeline.
Despite the violence, the pipeline itself sustained no damage, according to one source.
No group has claimed responsibility for the attack.
However, the region is known for the presence of militant groups linked to al-Qaeda and ISIS, raising concerns about the potential involvement of these groups.
This marks the first attack on security forces tasked with safeguarding the pipeline. This has highlighted the escalating risks in the area, including risk to oil infrastructure.
The Niger-Benin pipeline is designed to transport crude oil from Niger’s Agadem field to the Port of Seme in Benin; it covers approximately 2,000 kilometres.
The pipeline represents a crucial economic development for Niger, providing a reliable export route that can boost its oil revenue.
Niger’s oil industry, relatively nascent, began significant production in 2011 with the development of the Agadem oil field by China National Petroleum Corporation (CNPC).
Source:https://energynewsafrica.com
Kenya’s Energy and Petroleum Regulatory Authority (EPRA) has announced a drop in the price of petrol by KSh3 while that of diesel by KSh6.08 per litre and that of kerosene by Sh5.71 per litre.
EPRA announced the new prices in the latest review done on Friday, according a report by Kenya Star.
The review will cover the period between June 15, 2024, to July 14, 2024.
In Nairobi, super petrol, diesel and kerosene will now retail at Sh189.84, Sh173.10 and Sh163.05, respectively, effective midnight for the next 30 days.
In Mombasa, super petrol will sell at Sh186.66, diesel at Sh169.93 and kerosene at Sh160.
In Nakuru, the retail prices for petrol, diesel and kerosene will be Sh188.90, Sh172.54 and Sh162.57 respectively.
The prices in Eldoret will be Sh189.67, Sh173.31 and Sh163.34 for super petrol, diesel and kerosene respectively.
The prices are inclusive of the 16 per cent Value Added Tax (VAT).
EPRA said the drop is in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
“The average landed cost of imported Super Petrol decreased by 1.95 per cent from US$765.87 per cubic metre in April 2024 to US$750.95 per cubic metre in May 2024,” EPRA said.
EPRA added that diesel decreased by 3.92 per cent from US$719.21 per cubic metre to US$690.99 per cubic metre while Kerosene decreased by 6.84 percent from US$728.97 per cubic metre to US$679.14 per cubic metre.
Source: https://energynewsafrica.com
Seplat Energy is pursuing a swift conclusion to its $1.28 billion acquisition of ExxonMobil’s Nigerian shallow water oil assets, it said on Friday after being notified that NNPC had halted a legal challenge to the deal.
State oil company NNPC had challenged Exxon’s sale of the assets to Seplat, saying it had first right of refusal. The deal was further held up by regulatory issues.
“Seplat Energy commends the open cooperation and progress achieved by all stakeholders, and will diligently engage with all key stakeholders, including the government, in progressing towards a swift completion of the acquisition,” a Seplat statement said.
An NNPC spokesperson was unable to provide immediate comment.
Analysts have said that the Exxon-Seplat deal would inject much-needed capital into Nigeria’s oil industry, potentially leading to improved output. It would also signal to investors that similar deals, such as Shell’s asset sale to Renaissance in January, are likely to gain regulatory approval.
Nigeria, Africa’s biggest oil producer, relies on crude oil for more than 90% of its foreign exchange and half its budget. However, output has declined in recent years owing to underinvestment and theft.
Oil majors operating in Nigeria, including Shell and TotalEnergies, have been exiting their onshore shallow water operations to focus on deepwater drilling operations.
Source: Reuters.com
Russia has expressed readiness to engage any African government that is interested in adopting the use of floating nuclear power plant to address energy supply challenges and ensure sustainable development.
Although there are land-based nuclear power plants across Europe, United States of America, Asia and South Africa, Russia is the first country in the world to have designed and operated floating nuclear power plant since August 2020.
The floating nuclear power plant – Akademik Lomonosov – was named after the 18th century Russian scientist, Mikhail Lomonosov.
The plant is located in Pevek, and it serves the Chukotka Region, the northernmost and coldest part of Russia.
It is equipped with two KLT-40S reactor systems each, with a 35MWe capacity similar to those used on icebreakers.
Designed by Russian nuclear scientists and naval architects, the vessel is 144 metres long and 30 metres wide, and it has a displacement of 21,000 tonnes.
The Editor of Energy News Africa Limited, Mr Michael Creg Afful, had a rare opportunity to tour the facility with some reporters from South Africa, Uzbekistan, Kyrgyzstan, Indonesia and India at the instance of Russia’s state nuclear power corporation ROSATOM.
The reporters were welcomed by Andrey Valeryevich Zaslavsky, the Chief Engineer of the Floating Nuclear Power Plant (FNPP).
He took the reporters through the operations of the FNPP.
After his presentation, Viktor Nikolayevich Chyorny, the Deputy Chief Engineer for Engineering Support and Quality, conducted the reporters to tour the facility.
Viktor Nikolayevich Chyorny, the Deputy Chief Engineer for Engineering Support and Quality at the FNPP.
Speaking to Viktor Nikolayevich, Mr. Afful was told that the facility had been operating for almost four years without recording any incident.
Viktor Nikolayevich told energynewsafrica.com that great lessons had been learnt since they started operating the FNPP, adding that “floating nuclear power technology is viable and feasible.”
Going into the future, Viktor Nikolayevich said Russia would be developing more floating nuclear power plants with higher generation capacity than the Akademik Lomonosov, which has two reactors each with a capacity of 35MWe.
Asked whether Akademik Lomonosov had been designed in such way that it could be operated under different weather conditions, Viktor Nikolayevich responded positively.
He explained that the FNPP is fully automated and designed with environmental safety, including the security of the crew.
“The FNPP can operate at temperatures ranging from minus 50 to plus 50 Centigrade,” he said.
Comparing the advantages of land-based nuclear power plant to floating nuclear power plant, Viktor Nikolayevich said floating nuclear power plant is cheaper to construct and can be moved to any location when it is needed.
“There is also zero CO2 emissions, predictability of operating costs throughout the whole FNPP’s lifecycle leading to low fuel prices volatility,’’ he said.
“Floating nuclear power plant will take about four years to construct,” he added.
He stressed that Russia would be more than willing to engage any African nation that is interested in floating nuclear power to solve their energy needs
Source: https://energynewsafrica.com
