Egypt To Halt All LNG Exports From May To Meet Domestic Needs
Egypt has halted all LNG exports from May onwards to meet is domestic needs, according to local media, in light of reduced gas production and heightened summer demand.
The country has switched to imports for the first time since 2018, and was reported to have imported two prompt cargoes from Vitol and Trafigura , one of which was delivered April 13 at Jordan’s Aqaba terminal.
This delivery marked the first reported usage of the Suez Canal since January, when LNG players steered away from using the route due to geopolitical risks in the Red Sea region following a string of attacks on commercial ships crossing the Bab al-Mandab Strait by Houthi rebels in Yemen since October 2023.
However, risks in the region are still looming and no ship is yet recorded to be transiting northbound via the canal to Europe.
The imports into Egypt are hence expected to command a risk premium which is providing support to the price strength in the Atlantic as sellers wait to supply into the much-anticipated Egyptian demand.
“Yeah, I think Suez itself is fine. it’s the Gulf of Aden that is still an issue, so you can go southbound through the Suez to Egypt but there still hasn’t been cargoes going northbound from the Middle East to Europe,” David Lewis, LNG analyst at S&P Global Commodity Insights said.
Platts, part of S&P Global Commodity Insights, assessed the US Gulf Coast LNG freight rate to Japan/Korea via the Suez Canal at $2.23/MMBtu on April 23, down 2 cents/MMBtu on the day.
The freight rate was 12 cents/MMBtu higher than the route round the Cape of Good Hope and 69 cents/MMBtu higher than the cheapest route, via the Panama Canal.
On the pipeline side, European market participants have been closely monitoring Egyptian LNG as a determinant of pipeline gas prices in Europe.
“Aside from US feedgas deliveries, I think that the thing to watch for this summer is how much LNG is Egypt importing.
“It seems that they might be importing more than I expected, and this is likely to increase the tightness of LNG supply into Europe, which can be bullish for the TTF,” a UK-based gas analyst said.
In recent events, Egypt’s state-owned gas company EGAS issued a buy tender for one cargo, to be delivered between May 18-19, 2024. The tender will close at 1 pm Cairo time on April 24.
Source: Spglobal.com
South Africa: Eskom Reduces Reliance On Diesel To Generate Electricity
South Africa’s power utility company, Eskom has reduced its reliance on diesel usage for generate electricity.
This follows reports that it has ramped up its use of diesel to keep the lights on.
According to SABC report, Eskom has not imposed rolling blackouts for almost a month.
The power utility said it has sufficient generation capacity and emergency reserves to meet demand.
Eskom’s Head of Generation Bheki Nxumalo on Sunday briefed the media at Megawatt Park in Johannesburg on the status of the grid ahead of winter.
“Actually, the way we are burning diesel now because we use the reference of winter as well and a budget for this year is you look at the budget for this month in particular, we are almost like 40% below that and that compared to last year we burned about R3 billion for the month of April and this year we are at about R1,4 billion, so it shows that actually we are burning less.”
Source: https://energynewsafrica.com
Namibia: NAMCOR Signs Deal With Chevron To Develop Offshore Block
Namibia’s national oil company, NAMCOR has signed a development deal with Chevron that will see the U.S. oil major take an 80% operating working interest in an offshore block in the Walvis Basin.
The farm-out agreement with Chevron Namibia Exploration Limited (CNEL) will see the National Petroleum Corporation of Namibia (NAMCOR) and local company Custos Energy each retain a 10% interest in petroleum exploration license 82.
Oil companies are flocking to Namibia, excited by the southern African country’s plans to open up a major new frontier basin with recent offshore finds ranking among the largest this century.
“Our partnership with CNEL and Custos Energy represents a shared vision for the future of Namibia’s energy landscape,” Ebson Uanguta, interim Managing Director of NAMCOR, said in a statement on Monday, April 29, 2024.
Namibia, which has yet to produce any oil or gas, has become an exploration hotspot after offshore discoveries by TotalEnergies and Shell, and is planning for its first output by 2030.
Source: https://energynewsafrica.com
Nigeria: Fuel Supply Shortages Likely To Be Resolved In Two Weeks
Nigeria’s fuel shortage situation is expected to last for two more weeks, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
This comes despite assurance by the Nigerian National Petroleum Company Limited (NPCL) that it has adequate stock of the product.
In a statement, the Public Relations Officer of IPMAN, Chinedu Ukadike, mentioned that the product is currently unavailable in the country due to challenges in sourcing caused by ongoing maintenance at refineries in Europe.
“The situation is that there is no product. Once there is a lack of supply or inadequate supply, what you will see is scarcity and queues will emerge at filling stations.
“On the part of NNPCL, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.
“Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports. I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult.
“NNPC Group CEO has assured us that there will be improvement in the supply chain because their vessels are arriving. Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it.
“We expect that by next week or so, NNPC should be able to restore supply and with another week, normalcy should return.
“NNPC has said the marketers who have not been able to renew their licences will not be allowed to remain on their portal which has been shut for some time now. Because of this, we have not been able to request new products.
“At this nascent period of deregulation, you will discover that this leads to scarcity, even when the product arrives. As it is now, even by their data, out of 15,000 marketers that are on the portal with licences, only 1,050 renewed their licences.
“The requirement for renewal by NMDPRA is so much. Marketers are facing a hostile environment. NNPC placed a deadline of April 15, 2024, for marketers to renew their licences.
“We are, therefore, appealing to NNPC to extend this deadline and also to NMDPRA to hasten the release of licences of marketers who have completed their processes, and also reduce bottlenecks around licence renewals.”
Source: https://energynewsafrica.com
Ghana: Political Interferences Cause Of Ghana’s Power Crisis–Dr Apetorgbor
The Chief Executive Officer of the Chamber of Independent Power Generators, Ghana, Dr Elikplim Kwabla Apetorgbor, has blamed the energy crisis Ghana is currently experiencing on political interferences in the energy sector value chain.
He noted that the electricity sector is critical in driving economic growth and improving the quality of life for its citizens.
However, he said persistent political interference has undermined the sector’s sustainability, resulting in erratic power supply, financial instability and diminished investor confidence.
In an article titled: ‘The Detrimental Effects of Political Interference on Ghana’s Electricity Sustainability’, Dr Elikplim highlighted several issues that have arisen due to political interferences in the sector.
“Political interference often leads to short-term decision-making, neglecting long-term technical planning and infrastructure development.
“This lack of strategic foresight hampers the sector’s ability to meet growing demand and adapt to emerging challenges such as climate change and technological advancements,’’ he said.
Continuing, he said political interference has created an uncertain business environment for investors in Ghana’s electricity sector.
“Constant policy changes, arbitrary decision-making and political patronage discourage long-term investments and deter private sector participation, limiting the sector’s growth potential and hindering its ability to attract much-needed capital and expertise,’’ he added.
The Detrimental Effects of Political Interference on Ghana’s Electricity Sustainability
The electricity sector plays a critical role in driving economic growth and improving the quality of life for its citizens.
However, persistent political interference has undermined the sector’s sustainability, resulting in erratic power supply, financial instability, and diminished investor confidence.
Disruption of Technical Planning:
Political interference often leads to short-term decision-making, neglecting long-term technical planning and infrastructure development.
This lack of strategic foresight hampers the sector’s ability to meet growing demand and adapt to emerging challenges such as climate change and technological advancements.
Inefficient Resource Allocation:
Political agendas sometimes prioritize short-term gains over prudent resource allocation in the electricity sector.
This results in mismanagement of funds, inefficient operations, and inadequate maintenance of critical infrastructure, ultimately compromising the reliability and resilience of the electricity supply.
Erosion of Regulatory Independence:
The independence, professionalism and fairness of the regulatory bodies, PURC and EC is essential for ensuring fair competition, consumer protection, and investment stability in the electricity sector.
However, political interference is undermining regulatory independence, leading to regulatory capture, favoritism, and market distortions that stifle innovation and hinder market efficiency.
Investor Uncertainty:
Political interference creates an uncertain business environment for investors in Ghana’s electricity sector.
Constant policy changes, arbitrary decision-making, and political patronage discourage long-term investments and deter private sector participation, limiting the sector’s growth potential and hindering its ability to attract much-needed capital and expertise.
Social and Economic Impacts:
Erratic electricity supply resulting from political interference has significant social and economic consequences for Ghanaian citizens and businesses.
Power outages disrupt daily life, impede productivity, and undermine the competitiveness of industries, leading to job losses, reduced income, and diminished quality of life for millions of the Ghanaian (end users).
Addressing the negative impact of political interference on the sustainability of electricity supply in Ghana requires an unbiased and concerted effort from all stakeholders.
It is essential to depoliticize the sector, strengthen regulatory independence, and prioritize long-term planning and investment.
By fostering a conducive environment for private investors, promoting transparency and accountability, and upholding the rule of law, Ghana can unlock the full potential of its electricity sector and ensure a reliable, affordable, and sustainable energy supply always.
Dr, Elikplim Kwabla Apetorgbor
CEO, Independent Power Generators, Ghana
Source: https://energynewsafrica.com
South Africa: Ghana’s NPA CEO Re-elected ARDA President
Ghana’s petroleum downstream regulator, National Petroleum Authority’s (NPA) CEO, Dr Mustapha Abdul-Hamid, has been re-elected as President of the African Refiners and Distributors Association (ARDA) for a second term in office during ARDA’s Annual General Meeting (AGM) in Cape Town, South Africa, which ended on Friday, April 26, 2024.
Dr. Mustapha Abdul-Hamid was unanimously endorsed by the Executive Committee of the Association, following his renomination by the Executive Secretary, Anibor O. Kraga.
He was elected last year during the ARDA WEEK and has steered the continental body to achieve its strategic objectives.
Over the period under review, he led ARDA to improve its presence and visibility by securing key continental and global energy platforms to advocate for the inclusion and participation of the African downstream in the global energy transition conversations.
These global platforms have helped to secure strategic partnerships and alliances.
The leadership of Dr Abdul-Hamid also secured financial stability for the association through an improved membership drive with dues payment and sponsorships from strategic partners.
He also initiated structural reforms in the organisation to improve the inclusion and working conditions of staff at the secretariat of the association.
Dr. Abdul-Hamid will serve his last one year term.
Source: https://energynewsafrica.com
Drone Attacks Take Khor Mor Gas Field Offline, Claims Lives
Four expatriate workers lost their lives, and two others sustained injuries in a recent drone attack on the Khor Mor gas field in Iraq’s Kurdistan region.
This attack, reported by an advisor to the Iraqi Kurdish Prime Minister and a senior Kurdish political source, has also resulted in the suspension of production at the site.
The ramifications of the assault extend beyond casualties, impacting electricity generation in the region. Kurdistan’s electricity ministry stated that the drone attack disrupted gas supplies to power plants, leading to an approximate 2,500 MW reduction in electricity output.
Pearl Petroleum—a consortium comprised of Dana Gas and Crescent Petroleum (operators of the Kurdistan Gas Project), along with OMV, MOL, and RWE hold the rights to develop Khor Mor and Chemchemal, two of Iraq’s largest gas field.
Earlier lask week, U.S. troops shot down two drones outside a base in Iraq, the Pentagon has said, although the U.S. military could not confirm whether the attack was targeting U.S. forces.
No group has taken responsibility for Friday’s attack on the gas field that contains more than 7 trillion cubic feet of natural gas reserves.
“Good efforts have been made in the past to improve the energy sector and economic infrastructure in Iraq, especially in the Kurdistan Region, and while steps are being taken to resolve the disputed, evil and destructive hands once again targeted the Khor Mor gas field in a terrorist act. These repeated strikes must be stopped, and we urge the Iraqi government to find the perpetrators of this terrorist act and bring them to justice,” Peshawa Hawramani, KRG spokesperson said in Friday a statement following the attack.
The KRG spokesperson said that the four who lost their lives were Yemeni.
Source: Oilprice.com
Sierra Leone: Energy Minister Resigns Over Electricity Crisis
Sierra Leone’s Minister for Energy Alhaji Kanja Sesay has resigned due to electricity crisis in the West African nation.
Having accepted responsibility for the energy crisis, he tendered his resignation letter on Friday.
Turkish power company – Karpowership – has been supplying power to the country.
However, Sierra Leone appears not to be paying promptly for the electricity supply, resulting in accumulated debts.
In September 2023, Karpowership switched off power supply to Freetown, the capital, over unpaid debt of about $40 million.
Following the resignation of Alhaji Kanja Sesay on Friday, the office of the President, Julius Maada Bio, later announced that it had paid $17 million of the US$48 million owed to Karpowership, which provides electricity to Freetown.
A spokesman for the company confirmed the payment and said full electricity supplies had been restored to the capital.
“We are pleased to confirm that the power supply at full capacity to Sierra Leone has been restored,” the company said in a statement.
Since mid-April, Freetown and the cities of Bo, Kenema and Koidu have experienced multi-day stretches without electricity.
At that time, it said it had not received payment from the government of Sierra Leone for “a protracted period” and was therefore unable to pay fuel suppliers on behalf of the West African country.
According to the office of President Maada Bio, the energy ministry would fall under the direct supervision of the president.
Source: https://energynewsafrica.com
Ghana: Ivorian Power Regulators Visit ERERA
A three-member delegation from the National Electricity Regulatory Authority of Cote d’Ivoire (ANARE-CI) on April 24, 2024, ended its three-day working visit to ERERA to gather first-hand information on some of ERERA’s regulatory activities.
The working visit is part of an agreement between the Chairman of ERERA, Engr. Laurent Tossou and the
Director General of ANARE-CI, Mr. Amidou Traore, in February 2024, in Abidjan, Cote d’Ivoire, to allow the delegates to learn about ERERA’s regulatory activities: in particular, its tariff methodology for the Regional Electricity Market.
In his welcome remarks, Engr. Tossou expressed optimism that the visit would further strengthen the relationship between the two institutions and serve as a model for other institutions to copy.
Members of the ANARE-CI delegation which consisted of Messrs. Doffou Marc Elisée Monsoh, Economic and Financial Director; Ekra Laurent Bledou, Technical Director and Chiapault Gilles-Arnaud Mondon, Head of the Financial Control Department, were treated to presentations on ERERA’s tariff methodology and related matters.
ERERA’s Senior Power Expert, Mr. Yawovi Negbegble, its Senior Legal Expert, Mr. Oumar Bangoura as well as its Power Expert, Mr. Nutifafa Fiasorgbor, addressed the tariff-related issues with the members of the ANARE-CI delegation
Source: https://energynewsafrica.com
ExxonMobil Underwhelms With Q1 Earnings
ExxonMobil reported on Friday underwhelming earnings for the first quarter that were lower than consensus estimates, due to declining natural gas prices and refining margins and non-cash adjustments.
The U.S. supermajor booked first-quarter earnings of $8.2 billion, down from $11.4 billion for the first quarter of 2023. Earnings per share were $2.06 for the first quarter of 2024, down from $2.79 for the same period last year.
The U.S. supermajor booked first-quarter earnings of $8.2 billion, down from $11.4 billion for the first quarter of 2023.
Earnings per share were $2.06 for the first quarter of 2024, down from $2.79 for the same period last year.
Exxon’s Q1 2024 earnings per share were below the analyst consensus forecast of $2.19 compiled by The Wall Street Journal.
The yearly decline in earnings was the result of industry refining margins and natural gas prices coming down from last year’s highs to trade within the ten-year historical range, Exxon said in a statement
Compared to the fourth quarter, earnings fell by $1.8 billion, due to timing effects, lower base volumes, higher expenses from scheduled maintenance, and other primarily non-cash effects from tax and inventory adjustments.
Strong production growth in Exxon’s Guyana assets only partially offset lower natural gas realizations in the upstream and weaker industry refining margins and unfavorable timing effects in the downstream.
Earnings in Exxon’s chemical products business rose to $785 million, an increase of $414 million compared to the same quarter last year, thanks to higher margins, on the back of lower North American feed costs and higher margins from performance chemicals more than offsetting the decline in industry margins for polyethylene and polypropylene.
Exxon’s shareholder distributions were $6.8 billion in the quarter, including $3.8 billion of dividends and $3.0 billion of share repurchases.
“We delivered a strong quarter with continued growth in advantaged assets, such as Guyana, where production continues at higher-than-expected levels, contributing to historic economic growth for the Guyanese people,” Exxon’s chairman and chief executive officer Darren Woods said.
Exxon’s stock was down by 1.3% in pre-market trade after the underwhelming Q1 results.
Source: Oilprice.com
Zambia: Zesco Announces Power Outage In Kitwe Due To Maintenance Works At 66/11KV LUANGWA Substation
Zambia’s power utility company, Zesco Limited has served a notice to its customers and the public in Luangwa, Mulenga, Kamfinsa, New Ndeke, Chamboli, Zamtan, ZNS, Cedrice’s, Prisons and Mobile Police, Mwekera, Prof John Lungu Farm and surrounding areas that there will be power supply interruption on Friday 26 April from 08:00 hours to 17:00 hours.
The power supply interruption has been necessitated by maintenance works at 66/11kV Luangwa substation.
As a safety precaution, our customers and the public are urged to treat all supply lines to be live at all times, as power supply could be restored before the stated time.
ZESCO Limited regrets the inconvenience the power supply interruption will cause its valued customers.
Source: https://energynewsafrica.com
Ghana: Ashanti Regional Minister Owes ECG Unpaid Bills
Ghana’s Ashanti Regional Minister, Simon Osei Mensah, has incurred the wrath of the workers of the area’s ECG for orchestrating the arrest of the Ashanti East Manager of the Electricity Company of Ghana, Mark Wiafe Asomani.
The Minister allegedly ordered the arrest of the manager a few days ago after the ECG’s National Revenue Mobilisation Taskforce disconnected the electricity supply to the Kumasi Technical University for unpaid bills.
The action of the Minister infuriated the entire workforce of the power distribution company in all its operational areas.
On Wednesday, the workers of ECG hoisted red flags in all their operational areas in protest of the Minister’s conduct.
They demanded an apology from the Minister for his wrongful action but the Minister appeared to be unfazed.
The workers threatened to disconnect the Minister’s private residence over unpaid bills if he failed to render an unqualified apology.
Responding to the workers’ demand for an apology at a press conference in Kumasi on Thursday, 25th April, the Regional Minister, Osei-Mensah, defended his actions, citing security concerns as the basis for requesting the police to arrest the Ashanti East Manager of ECG, Mark Wiafe Asomani.
“Do I have to apologise for doing my security work?” the minister questioned, asserting his authority under the Securities and Intelligence Agencies Act of 2020.
“What I want to tell you is that I asked the police to invite Ing. Mark Wiafe Asomani on security grounds because of the happenings in the electricity sector in the region and the fact that a taskforce can always come from outside to disconnect without the proper information,” he said.
He also refuted claims that certain ECG managers are members of the Regional Security Council (REGSEC) and criticised ECG for failing to maintain uninterrupted power supply at the residences of the President and Vice President when in the Ashanti Region.
“It is a palpable falsehood. They are not members of the Regional Security Council. Regional Security Council invited them to brief us on the adequacy or otherwise of security measures put in place at the various installations of the ECG.
“I had informed ECG that where the President and the Vice President lodged anytime they are in Kumasi is declared a security zone.
“Unfortunately, ECG had never observed this and keeps on flouting this [directive],” he said.
Furthermore, the Minister alleged overcharges by ECG for electricity at his residence while denying any outstanding payments to the power company.
Source: https://energynewsafrica.com
Ghana: CBOD Raises Alarm Over Govt Plan To Let BOST Act As Sole Off-Taker Of Sentuo Oil Refinery Petroleum Products
The Chamber of Bulk Oil Distributors (CBOD) has raised the alarm over a plan by the Government of Ghana to make the Bulk Energy Storage and Transportation (BEST) Company, formerly known as Bulk Oil Storage and Transportation (BOST) Company, the sole off-taker of refined petroleum products by Chinese firm, Sentuo Oil Refinery Limited, under the Gold for Oil (G4O) programme.
The G4O programme is a government-led initiative to address the depreciation of the local currency, Cedi, against international trading currencies.
Sentuo commenced operations recently and has since been selling products like diesel and petrol to bulk oil distributors who then sell them to oil marketing companies before retailing to final consumers.
But a statement issued by Patrick Kwaku Ofori (Ph.D.), the Chief Executive Officer of CBOD, on Thursday, 25th April 2024, and copied this portal, claimed that Sentuo’s petroleum would be sold to a single off-taker who would then resell to BDCs if the plan goes through.
According to members of CBOD, information available to them indicates that the plan has been necessitated by government’s aim to control the exchange rate by indirectly ceding Sentuo’s cedi liquidity through BEST for the latter to manage USD allocations under the G4O programme.
“We are convinced that this plan is inconsistent with the deregulation policy that guides the activities of the petroleum downstream sector.
“We object to this proposal and respectfully appeal to the Economic Management Team (EMT) & the Vice-President, Dr. Alhaji Mahamudu Bawumia, to review this proposal,” CBOD said.
CBOD cautioned that this proposal would create market challenges and deficiencies, which will in the medium to long term inevitably cripple the downstream sector.
“Providing the needed USD liquidity under the G4O programme can still be achieved without necessarily anchoring the entire output of Sentuo Oil Refinery Limited (SORL) with BEST, formerly known as Bulk Oil Storage and Transportation (BOST) Company,” CBOD stated.
The Chamber has given an assurance that it is committed to working with the government to develop a workable G4O framework that fosters fair market practices and transparency, while promoting innovation, sustainability and an efficient downstream petroleum sector in Ghana.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Equinor Upbeat About Investor Interest In US Offshore Wind Farm
Norway’s Equinor is confident of finding an investor for its planned Empire Wind 1 offshore wind farm in New York after a new power off-take agreement improved the project’s economics, the company said on Thursday.
New York State authorities in Feburary awarded the project a new conditional power purchase contract, replacing a previous deal that was no longer competitive due to rising construction costs, higher interest rates and supply chain snags.
Equinor was glad to have received the new contract, which significantly changed the economics of the project, CFO Torgrim Reitan told analysts during an earnings call on Thursday.
“2024 is the year of de-risking for the Empire Wind 1 project in New York and we are progressing,” he said.
The company plans to sell a stake as part of a so-called farm down to a new partner to reduce capital expenditure, with Reitan saying there was “a broad set of potential interested parties”.
It would mark the second farm down for Empire Wind 1, after Equinor earlier this year parted ways with its previous partner BP .
Equinor will reveal the price of its new contract with New York once it is firmly signed, with only an average for several awarded projects given in February, the CFO said.
All necessary procurement contract were more or less settled for the project, however, with very little remaining exposure to inflation, he added.
Equinor has opted for 15-megawatt (MW) Vestas wind turbines for the project, a proven technology, Reitan said.
“We feel confident in the delivery of that,” he added.
Reitan’s comment followed news last week that New York had rejectedcontracts for three other projects that had been hoping to utilise 18-MW wind turbines, as the chosen manufacturer, GE Vernova, had decided not to produce those turbines.
Source: https://energynewsafrica.com