Nigeria: Chinese Firm Caught For Operating Electricity Business Without License, Slapped With Hefty Fine

A Chinese firm in the Republic of Nigeria has been slapped with a hefty fine by the Nigerian Electricity Regulatory Commission (NERC) for operating an electricity generation and distribution company without obtaining a licence. The firm violated section 62 of the outdated Electric Power Sector Reform Act (EPSRA) 2005, advisorsreports said in a report sighted by this portal. The report, however, did not provide details of the fine the Chinese firm is expected to pay. According to section 62 of the repealed Electric Power Sector Reform Act (EPSRA) 2005, “No person except in accordance with a license issued pursuant to this Act shall construct, own or operate an undertaking other than an undertaking specified in subsection 2 of this Section, or in any way engage in the business of electricity generation, excluding captive generation; electricity transmission; system operation; electricity distribution; or trading in electricity.’’ The Chinese firm, CCETC Suk Power Company Limited, has admitted to operating an electricity generation and distribution company without the appropriate licence. The company had filed a petition to NERC to review an Order to it. However, during the hearing of the petition, it was uncovered that the company was operating without a licence. The company pleaded with the Commission to review the fine imposed on it to enable it to continue servicing its residential and industrial consumers.

Musiliu Oseni , NERC Vice Chairman, who chaired the panel urged power sector investors to obtain licenses before they begin operations.

He warned that failure to do so will attract hefty sacntions.

     

Ghana: Veep Accuses ECG Workers Of Sabotaging Govt’s Digitalisation Agenda…But ECG Workers Say Veep’s Claim Is False

Ghana’s Vice President Dr Mahamudu Bawumia has accused the workers of the power distribution company, Electricity Company of Ghana, of sabotaging the government’s attempt to digitalise the revenue collection of the company. The Vice President, who was speaking at the Annual General Meeting of Anti-Corruption Agencies in Africa, mentioned that some ECG IT unit employees installed ransomware to stop the company’s IT system from functioning correctly. He said that the ransomware caused the system to crash and so the National Security had to step in to identify the employees responsible for the damage. “Every month, they simply maintained it at GH¢450 million. I, thus, indicated that we needed to deploy a team to digitalise the Electricity Company of Ghana’s revenue collection. As a result, we sent a team and started the digitalisation process. “Can you believe that system employees installed ransomware throughout the entire system to ruin it? And that’s when the system fell apart. In the end, we had to call in National Security to determine that some employees of the IT department were responsible. “And we located the machine on which the ransomware had been introduced into the network. Restoring the system takes some time. To make this work at all, they demanded a ransom. Is that even possible to imagine? “So, they were taken into custody. We also digitalised the system, restored it, and said that Ghana would no longer accept cash payments for electricity. You solely use electronic bank transfers and mobile money to make payments. That is presently the situation. Is it not astonishing that monthly receipts have increased to more than one billion cedis from GH¢450 million?” he quizzed. The comments by the Vice President who is also the presidential candidate of the governing New Patriotic Party (NPP), have not settled well with the staff of the ECG. A source within the top executives of the ECG workers union told this portal that the comments by the Vice President were not true. “That is not true. ECG system was attacked before we started the cashless system as a company,” the source said. It would be recalled that in 2022, some customers of ECG in parts of the Volta Region, Takoradi, Tema, Cape Coast, Kasoa, Winneba, Swedru, Koforidua, Nkawkaw and Tafo were unable to buy electricity credit due to metering system downtime. The development brought frustrations to electricity users in the affected towns. The incident happened before the ECG went cashless in 2023. In March 2023, the managing director of ECG, Samuel Mahama, told the media that some staff of the ECG had been arrested for the meter glitch but failed to give further details. It is more than a year now and Ghanaians are yet to know the identity of those staff and the type of punishment that has been meted out to them.

      Source: https://energynewsafrica.com

Benin Denies Niger Access To Cotonou Port For Oil Shipment To China

The Republic of Benin has denied Niger access to using its Cotonou Port for the first oil shipment to China due to frosty relations between the two West African nations following Niger’s continuous closure of its border with Benin. Three vessels carrying crude oil from Niger and destined for China arrived in Benin but Benin authorities prevented them from docking at the port. Niger produces just over 20,000 barrels of oil for domestic use per day and has advanced plans to increase daily production to over 100,000 for export using its neighbour’s ports to reach international markets. The oil bound for China was part of a $400-million commodity-backed loan from China National Petroleum Corp, which Niger’s military junta agreed to at a seven per cent interest rate and repayment in oil for 12 months. CNPC has invested some $4.6 billion in Niger’s oil industry, including the construction of a 1,200-mile pipeline transporting crude oil from Niger to Benin. The pipeline was set to begin shipping 90,000 bpd in May and up to 110,000 bpd at full capacity. Speaking about the effects of Niger’s ‘unfriendly posture’ on the economy of Benin, President Patrice Talon declared that the Contonou port would not be opened to Niger oil export unless the junta in Niamey ends the border blockade. “If you want to load your oil in our waters, you can’t view Benin as an enemy and at the same time expect your oil to cross our territory,” Benin’s President, Patrice Talon, said in a statement. “We’re open to working with Niger. They’re the ones that refused to allow trucks to cross. “Benin is not an enemy country and if tomorrow the Nigerien authorities decide to collaborate with Benin formally, the boats will be loaded,” he added. The authorities in Niamey are yet to respond to Benin’s posture.           Source: https://energynewsafrica.com

Ghana: Star Oil Lauds GOIL’s Decision To Sell Ron 91 Gasoline

Star Oil Ghana, the second leading indigenous oil marketing company in the Republic of Ghana, has commended GOIL, the leading OMC, for introducing Super XP Ron 91 to give customers affordable fuel options. In a post on Facebook and sighted by energynewsafrica.com, Star Oil said it has always promoted Ron 91 as the recommended gasoline (petrol) for the majority of vehicles in Ghana, in both its economy and performance ‘and we are excited that GOIL has finally decided to provide this option at its stations across the country,” Star Oil’s Facebook post read. Star Oil described GOIL’s decision as a worthy move that would help many Ghanaians avoid spending more on any grade of fuel without extra benefits. “Good move, Team GOIL. Congratulations once again,” the post concluded. It would be recalled that on Saturday, May 5, this year, GOIL announced the introduction of Super XP Ron 91 across its 400 stations in the West African nation. A litre of Super XP Ron 91 is being sold at Gh¢14.40, a bit lower compared to the same product being sold by GOIL’s competitors. With the introduction of the Super XP Ron 91, which is one of the high-quality and affordable fuel commodities, GOIL has now offered three products at its service stations, namely Super XP Ron 91, Super XP Ron 95 and Diesel XP. The Super XP Ron 95 is now a premium fuel and consumers can choose from either Super XP Ron 95 or Ron 91 depending on their income level.     Source: https://energynewsafrica.com

Ghana: Petrol, Diesel Prices Go Up Marginally

The prices of petrol and diesel have gone up marginally at the pumps in the Republic of Ghana. Petrol now sells between Gh¢13.65 and Gh¢15.22 while diesel is selling between Gh¢13.83 and Gh¢14.69 per litre. Unlike in other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every two weeks. During the second pricing window for April, which ended on April 30, 2024, a litre of petrol was sold between Gh¢13.13 and Gh¢14.99 while diesel was sold between Gh14.11 and Gh¢14.70 per litre. The increment in fuel prices is due to the rising cost of refined products on the international market and exchange rate volatility. Leading oil marketing company, GOIL Plc, sells petrol at Gh¢14.40 per litre while diesel is sold at Gh¢14.65 per litre. Star Oil is selling petrol at Gh¢13.99 per litre while diesel is selling at Gh¢13.97 per litre. Shell sells both petrol and diesel at Gh¢14.69 per litre. TotalEnergies, one of the market leaders, is selling both petrol and diesel at Gh¢14.65 per litre. Petrosol Ghana Limited, one of the top ten OMCs, has also adjusted its pump prices and is selling petrol at Gh¢14.39 per litre while diesel is sold at Gh¢14.59 per litre. Zen is selling petrol at Gh¢13.73 per litre while diesel is selling at Gh¢13.96 per litre. Engen Ghana is selling both petrol and diesel at Gh¢14.55 per litre. Allied Oil is selling petrol at Gh¢13. 65 per litre while diesel is sold at Gh¢13.83 per litre. Pacific Oil is selling petrol at Gh¢13.98 per litre while diesel was sold at Gh¢14.28 per litre. Dukes is selling petrol at Gh¢13.65 per litre while is selling diesel at Gh¢13.80 per litre. Cash Oil is selling both petrol and diesel at Gh¢13.75 per litre. Lucky Oil is selling petrol at Gh¢13.96 and diesel at Gh¢13.93 per litre. Alinco is selling both petrol and diesel at Gh¢13.69 per litre. Data from the regulator, the National Petroleum Authority (NPA), showed that the prices of finished products—diesel and petrol—witnessed some changes. While the price of petrol jumped on the international market, diesel, on the other hand, saw a reduction in price within two weeks. Petrol went up to US$942.30 per metric tonne while diesel went down to US$792.02 per metric tonne.           Source: https://energynewsafrica.com

Sudan: We’ve Exploited Only 20% Of Our Oil Reserves –Energy Minister

Sudanese Minister for Energy and Oil, Dr. Mohi-Eddin Naeem has disclosed that Sudan has only exploited 20 percent of its known oil and gas reserves fields in the Red Sea. According to him, the country has converted power stations to take greater advantage of the gas for electricity generation. The minister pointed to the government’s efforts to maximize oil and gas production to meet the growing demand. Minister Dr. Mohi-Eddin Naeem who was speaking at the Special Meeting of the just ended World Economic Forum on Global Cooperation, Growth and Energy for Development, in Riyadh, Saudi Arabia, explained that the merger of the Ministries of Energy and Minerals aims to benefit from gold resources in the country. Dr. Naeem stated that Sudan meets 40 percent of its energy needs, and has initiatives in the field of solar, thermal, and wind energy to generate electricity, in addition to possession of a large oil reserve in the north. He revealed that Sudan faces a challenge in cooperating with old or new players everywhere, adding that Sudan has no political problems with any country.         Source: https://energynewsafrica.com

China’s Nuclear Capacity Continues To Surge

China has added more than 34 gigawatts (GW) of nuclear power capacity over the past decade as new installations surge, the U.S. Energy Information Agency (EIA) said in an analysis on Monday. As of April 2024, China had 55 operating nuclear reactors with a total net capacity of 53.2 GW, while another 23 reactors are currently under construction. The United States still has the largest nuclear fleet in the world, with 94 reactors, but it took nearly 40 years to add the same nuclear power capacity as China added in 10 years, the EIA noted. Although China has added nuclear power capacity in each of the past 10 years, nuclear power accounted for only about 5% of China’s cumulative power generation in 2022. To compare, nuclear power makes up about 18% of the electricity generation mix in the United States, according to the EIA data. Despite China’s policy of adding more nuclear capacity to reduce emissions and to meet its power demand, coal continues to be the largest electricity generation source and is the source of much of the country’s air pollution, the EIA says. China is currently constructing a total of 26 nuclear power units with a combined capacity of 30.3 GW, the highest in the world, according to a report by the China Nuclear Energy Association (CNEA) cited by local media last month. Air pollution from coal-fired power plants is a major impetus for China to expand its nuclear generation fleet, according to the World Nuclear Association. As of September 2023, China had 55 nuclear power units in operation with a combined installed capacity of 57 GW, and 24 units under construction with a total installed capacity of 27.8 GW, Xinhua quoted CNEA official Wang Binghua as saying. By 2060, that capacity is expected to jump to 400 GW, the official said China is also expected to approve six to eight nuclear power units each year “within the foreseeable future.”   Source: Oilprice.com

Kenya: EV User Attests To The Quality Of Kenya Power EV Charging Station

David Alnwyck, Kenya’s first public user of the country’s electric vehicle charging station located at Stima Plaza, has attested to the quality of the charging station. The expatriate resident in Nairobi, the capital of Kenya, owns a fully electric vehicle with a range of 250 kilometres. He was the first person to have visited the station to charge his EV. In a post, Kenya Power wrote: Mr David Alnwyck was the first public user of our electric vehicle (EV) charging station located at Stima Plaza, Parklands. “During his second visit to use the EV charger last Friday, Mr Alnwyck, who owns a fully electric vehicle with a range of 250km, said the charger is one of the best in the country,” the post said. Last month, Kenya Power inaugurated two EV charging stations–one at Stima Plaza, Parklands and the other at Ruaraka depot. The company announced that it would be spending about Kshs258 million to install EV charging stations across the country in three years. The company said an RFID card for charging would be required and could be obtained at the Kenya Power security desk at Stima Plaza and Ruaraka depot.           Source: https://energynewsafrica.com

Ghana: NPA Sets The Record Straight On Dadieso LPG Tanker Accident

Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has clarified an incident that occurred at Dadieso in Ashanti Region where some irate youth of the town were captured in a viral video blocking the main road and throwing bottles on the road to make it impassable. Media reports suggested that the irate youth were blocking the road because several calls to clear a Liquefied Petroleum Gas Tanker that had overturned in the area to avoid a possible explosion had fallen on deaf ears. In a bid to ensure that the area was without any flammable objects or exposed to fire or exhaust fumes, the irate youth decided to block that section of the road where the accident occurred. In a statement issued by the Corporate Affairs Department of NPA on Monday, the regulator provided details of the LPG tanker. The NPA said the LPG tanker in question belonged to Society Nationale Burkinabe d’Hydrocarbures        (SONABHY), a state-owned company responsible for fuel supply in Burkina Faso. It said the tanker was transporting LPG to Burkina Faso when it was involved in an accident at Dadieso on the morning of Friday, May 3, 2024. The NPA explained that the accident resulted in anxiety among residents due to the potential danger of the product, leading to demonstrations and blockade of the Accra-Kumasi trunk road by the residents. According to the NPA, upon receipt of the information, it communicated the same to the Management of SONABHY and instructed them to dispatch an empty tanker and a pumping vehicle to evacuate the product. The NPA said it temporarily arranged for a private company to evacuate the product. “SONABHY’s empty tank and pumping vehicle later got to the accident scene on Saturday, May 4, 2024. “The product has since been transferred into SONABHY’s empty tank and transported to Burkina Faso,” the NPA explained. According to the NPA, there were no incidents leading to the loss of human lives and destruction of properties as speculated in the social media. The NPA expressed gratitude to all who assisted in diverse ways to make the evacuation of the LPG successful.

 

 

 

 

Source: https://energynewsafrica.com

Ghana: Monday Rainstorm Wreaks Havoc On ECG Electric Poles In Gbetsile, Kubekrom, Other Areas(Photos)

A rainstorm that occurred on Monday morning in Tema and surrounding areas destroyed several electric poles belonging to the Electricity Company of Ghana at Gbetsile, Peaceland, Kubekrom and New York Aviation, all suburbs of the Kpone-Katamanso Municipality in the Greater Accra Region. This development has resulted in power outages in the above-mentioned areas. Meanwhile, ECG said it is working to restore power supply to the affected communities.         Source: https://energynewsafrica.com

UK Awards 31 New North Sea Oil and Gas Exploration Licenses

The UK’s North Sea Transition Authority (NSTA) offered on Friday another 31 licenses for North Sea exploration in the final tranche of the 33rd oil and gas licensing round. In all three tranches of the licensing round, the UK regulator has awarded over the past few months a total of 82 licenses to 50 companies. The first tranche offered 27 licenses in October 2023, with the second offering 24 licenses in January 2024. The 33rd round has attracted 115 bids from 76 companies across 257 blocks and part-blocks, NSTA said. The licenses offered in the round would be expected to add an estimated 600 million barrels of oil equivalent to 2060, or 545 million barrels of oil equivalent by 2050. Some of the licenses awarded today are in areas previously earmarked for offshore wind power licenses. “Following discussions with our partners in The Crown Estate and Crown Estate Scotland, we have introduced a new clause for overlapping oil and gas licences and wind leases for the first time,” NSTA said. “This will be the main commercial mechanism for these licences to resolve spatial overlaps and to support co-existence of these important industries.” “The North Sea is an important resource for energy security and net zero delivery, so it’s vital that sectors collaborate to ensure those systems can co-exist,” the regulator said. The leading industry body, Offshore Energies UK, said that the latest license awards are chiefly for natural gas extraction from the southern North Sea, with the potential to come on stream within the next five years. “They will make the UK less reliant on imported gas, which the NSTA has shown to be more carbon intensive,” OEUK added. Offshore Energies UK’s CEO David Whitehouse commented, “In this general election year, we face a choice: we can build a homegrown energy transition and kickstart economic growth by backing our people, our offshore firms and our world class supply chain, or we can import even more energy and fail to grow our new wind, hydrogen and carbon capture industries.”     Source: Oilprice.com

Nigeria: NERC Unbundles TCN, Creates Independent System Operator To Ensure Reliable Power Supply

Nigeria has initiated processes to unbundle the Transmission Company of Nigeria to create two separate entities in a bid to ensure reliable and efficient power supply across the country. The West African nation, which has been experiencing power supply challenges even before President Bola Ahmed Tinubu came into office, wants to establish an Independent System Operator as a distinct entity that will be responsible for managing the national grid and other system operations related to market contracts and transactions. TCN would be unbundled into Transmission Service Provider (TSP) and Independent System Operator, as prescribed in the Electricity Act 2023. This was contained in an Order issued by the Nigerian Electricity Regulatory Commission (NERC) and signed by its Chairman, Engr. Sanusi Garba, and Vice Chairman Musiliu Oseni on April 30. The NERC has charged the Bureau of Public Enterprise (BPE) to act quickly by ensuring that the incorporation of the Independent System Operator is done no later than 31st May 2024. “The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (NISO).” According to the order, TCN will transfer all market and system operation functions to the newly formed NISO. NERC said that this is in line with the provisions of the Electricity Act 2023, which provides clearer guidelines for the incorporation and licensing of the Independent System Operator, ISO. It said that previously, TCN held Transmission Service Provider, TSP and System Operations, SO licences issued by NERC. ”With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity. ”This new company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions as specified in the Electricity Act and the terms of TCN’s system operation licence,” it said. The company outlined NISO’s responsibilities to include managing assets and liabilities related to market, and system operation on behalf of market participants and consumer groups. ”The new ISO will also negotiate contracts for ancillary services with independent power producers and generation licensees. ”In addition to performing market and system operation functions for the benefit of market participants and system users,” it said.     Source: https://energynewsafrica.com

Ghana: We’re Determined To Ensure LPG Becomes More Affordable–NPA

Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), is taking steps to ensure that the cost of Liquefied Petroleum Gas (LPG) becomes more affordable and accessible. The regulator said it will be engaging the Ministry of Finance to consider removing some taxes on Liquefied Petroleum Gas (LPG). The high cost of Liquefied Petroleum Gas which is mostly used by women for cooking has become a major concern to consumers and marketers. Early this year, the regulator introduced a tender process for the importation of LPG, leading to a reduction of premium on LPG importation. Speaking at a regional town hall durbar on cylinder recirculation model (CRM) in Tamale, last Friday, Mrs Linda Asante, who is the Deputy Chief Executive Officer of NPA, said the Authority is determined to ensure that LPG becomes more affordable to encourage more women to use LPG for cooking to protect their health and save the environment. Mrs Asante said smoke from charcoal and firewood exposed mostly women and children to lung diseases such as hypertension and also affected their eyes. She said LPG, on the other hand, does not emit smoke, which makes it the most safe and convenient means of cooking. Mrs Asante said the government had introduced the CRM policy to make LPG more affordable, accessible and available. Mrs Asante, therefore, urged the people in the north to switch from the use of charcoal and firewood to LPG to protect their health and preserve the environment. “No huge jump in prices because of CRM. The tender process has brought down the price of LPG.  “And we have various sizes of the LPG. We have 3kg, we have 6kg and we have 12.5 and it goes up there. So, you can buy any size you want. I’m sure 3kg will be the same as wanting to buy a tot. If you want to buy a tot, that avenue is also available. She said in a few weeks, consumers would begin to access filled cylinders at the exchange in their communities. For his part, the Head of Gas, Commercial Regulation of NPA, Mr Obed Kraine Boachie, said four LPG cylinder bottling plants–three in Tema and one in Kumasi– had been set up to fill cylinders for distribution to LPG marketers for onward distribution to cylinder exchange points. He said the Authority had received applications for the setting up of bottling plants in Tamale and other areas. Mr Boachie said the CRM value chain would create more jobs and stressed that the existing LPG marketing companies would be the key drivers of the policy. In her welcome address, the Director of Gas at NPA, Mrs Akua Ntiwaa Kwakye, said the CRM was a new way of distributing LPG safely and conveniently. Zagu Lana, the Chief Yakubu Nantogmah, who chaired the occasion, bemoaned the continuous felling of trees for charcoal and firewood for cooking. He said the present generation has a bounding duty to protect the environment for future generations, hence, the need for people to stop felling trees and switch to the use of LPG. Officers from the Ghana National Fire and Rescue Service staged demonstrations on how to put out fire on cylinders using wet towels and fire extinguishers. The Director of Corporate Affairs of NPA, Mrs. Maria Oquaye, the Director of Research, Monitoring and Evaluation of NPA, Dr Joseph Wilson, the NPA Northern Regional Manager, Mr Theophilus Manu, the Head of Quality Control, Mr Saeed Ubeidallah Kutia, the Head of Consumer Services, Mrs. Eunice Budu Nyarko, and the Head of Regional Coordination, Mrs Aku Yuiah, all of NPA, were present at the durbar. The durbar was attended by chiefs, security officers, public servants, LPG dealers, students and traders.         Source: https://energynewsafrica.com

Oil Majors Offered Faster Nigerian Exit If They Pay For Cleanup

Majors such as Exxon Mobil and Shell that aim to exit Nigeria’s onshore oil can get quicker approval to do so if they take responsibility for spills rather than wait for authorities to apportion blame, the regulator said last Friday. Exxon, Shell, TotalEnergies, and Eni have all sought to leave Nigeria’s oil-rich Niger delta in recent years citing security concerns, including theft and sabotage, to focus on deepwater drilling. However, their exits have been delayed by regulatory hurdles. At a meeting with the companies in Abuja, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe offered a short-term option with faster approval if the companies commit to cleaning up spills and compensating communities. “We have the undertaking here. The consent here though fixed for June, could be much shorter,” he said. “If you agree to take that option, you sign the undertaking knowing that there are obligations to be fulfilled,” Komolafe said. The second long-term option involves waiting for NURPC to identify and assign all liabilities, potentially delaying the final approval until August. NURPC is seeking to balance a faster exit for oil majors with protecting the environment, local communities, and the long-term viability of the assets The companies are reviewing the options and will respond soon, they said. Analysts say the accelerated option could cost oil majors millions of dollars for cleanups and reparations. The departure of the majors means a total of 26 onshore blocks are on offer, holding an estimated reserve of 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and about 90,717 billion cubic feet of gas, NUPRC said. “We aim to ensure that the companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle in accordance with good asset stewardship practices,” Komolafe said.   Source: Reuter.com