Ukraine Asks Europe To Help Protect Gas Storage Sites From Russian Strikes
The head of Ukraine’s state energy company has appealed to the European Union to help protect gas storage sites from Russian strikes.
“It is of interest of the EU to protect storage, transportation and production facilities”, Oleksiy Chernyshov, chief executive of Naftogaz, told the Financial Times.
Europe has been storing natural gas in the Ukraine after its own capacity filled up amid depressed demand.
Russia, for its part, has been focusing its attacks on energy infrastructure, including gas storage sites.
“Ukraine is playing a key role for central and eastern Europe’s security of gas supply this winter,” Natasha Fielding, Argus Media’s head of European gas pricing, told the FT In January.
European demand has been subdued in recent months due to slowing economic activity, but Europe still needs a lot of natural gas for space heating and power generation, hence the demand for Ukrainian storage space.
“Technologically, we’re all fit, and we have managed to repair the [damaged surface] equipment and we fulfill our obligations to our customers,” Naftogaz’ Chernyshov told the Financial Times.
Apparently, this is not enough to make sure the storage sites remain functional, so Chernyshov made the case for more air defense systems.
The protection of energy assets requires “a very high number” of air defense systems, he said, adding that “We might remain in a position where we would still need more air defense” and that “EU countries, of course, should play a crucial role in that assistance.”
Besides gas storage, Ukraine is still a major conduit for Russia’s pipeline gas to Europe, which Chernyshov also noted.
“The reason why Naftogaz has continued with this transit deal even amid the war with Russia is to satisfy the EU’s gas needs and to remain as a reliable partner to the bloc,” he said.
The call from Naftogaz’s chief executive comes after the U.S. Congress approved another $61 billion in military aid for the Ukrainian government last week.
Source: Oilprice.com
Sierra Leone: Staying In Office While Freetown, Others Were Without Electricity Was Embarrassing To Me – Former Energy Minister
Sierra Leone’s immediate past Energy Minister Alhaji Kanja Sesay has said remaining in office while Sierra Leoneans, especially those in Freetown, the capital, were without power for days was an embarrassment to him, hence his decision to resign from his position.
“It was so embarrassing to me that for 10 days there was no power in Freetown because Karpowership had shut down,” Alhaji Kanja Sesay told Michael Creg Afful, Editor of energynewsafrica.com via telephone.
The Turkish power company – Karpowership – has been supplying power to Freetown, capital of Sierra Leone.
However, Alhaji Kanja Sesay said his country was not prompt in payment, resulting in an accumulated debt of about US$ 48million owed the company.
He said the last time his country paid part of the debt owed Karpowership was in July 2023.
The unpaid bills somehow affected the company’s operations, forcing it to pull the plugs which threw Freetown and other areas into darkness for days.
Last Friday, the sector minister, Alhaji Kanja Sesay, tendered his resignation letter to the President due to the power situation.
Alhaji Kanja Sesay told this portal that the decision of Karpowership brought a lot of pressure on him and businesses, for which reason he decided to step down so that someone else could take over.
Asked whether he resigned because there was pressure from the government or the citizens, Alhaji Kanja Sesay responded negatively.
He said, “I resigned of my own volition because the situation was getting to much.”
“The power situation was affecting lives and businesses and people were complaining,” he added.
Asked whether he was surprised that the government paid $17million to Karpowership few hours after he had resigned, Alhaji Kanja Sesay could not give a definite answer but laughed.
Continuing, he said he read a story that said Ghana owed independent power producers which include Karpowership about US$1.8billion and wondered why they acted badly in Sierra Leone.
Mr Sesay served as the Energy Minister for six years and was regarded as one of President Bio’s finest ministers during his first term in office.
Source: https://energynewsafrica.com
Nigeria: Federal Gov’t Requires $10bn To Revive Power Sector
Nigeria’s will require about 10 billion dollars investment yearly, to revive the power sector for the next 10 years, Minister for Power, Adebayo Adelabu has said.
“For this sector to be revived, government needs to spend nothing less than 10 billion dollars annually in the next 10 years.
”This is because of the Infrastructure requirement for the stability of the sector, but government cannot afford that.
“And so we must make this sector attractive to investors and to lenders.
“So for us to attract investors, and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing,” Chief Adebayo Adelabu said.
The Minister was speaking in Abuja on Monday, at a one day investigative hearing on halting the electricity tariff increase by the Nigerian Electricity Regulatory Commission (NERC) organised by the Senate Committee on Power.
He added: “If the value is still at N66 and government is not paying subsidy, the investors will not come.
“But now that we have increased tariff for a Band, there are interest been shown by investors.”
The minister said the major challenge in the sector was absence of liquidity, saying that the sector had been operating on a subsidised tariff regime, given the absence of a cost reflective tariff.
He said that the subsidy had not be funded over the years as huge liabilities was being owed the Generating Companies ( GenCos) and the Gas Companies.
Mr Adelabu said the inability of the government to pay the outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector.
He appealed to the lawmakers to support the process of paying the debt owed operators across the value chain of generation, transmission and distribution.
“The increase is based on supply, saying that any customer that do not received 20 hours power supply will not be made to pay the new tariff,” he said.
He said the government was committed to ensuring sustainable reform in the sector, saying that there was need to clear the outstanding debt owed GenCos and Gas companies.
To improve power supply, he said government was investing in hydroelectric power, adding that construction of 700 megawatt power in Zungeru had commenced, while Kashimbila Hydroelectric power plant of 40 megawatt was awaiting evacuation to improve generation.
The minister said there was also an ongoing investment of 26 small hydropower dams to boost electricity production across the country.
However, members of the committee in their separate remarks decried the experiences of Nigerians on electricity supply over the years, despite the unbundling of the sector.
Sen. Lola Ashiru, the Vice-Chairman of the committee said Nigerians were paying for inefficiency of power sector operators.
Ashiru said there was a lot of inefficiency across the value chain of generation, transmission and distribution.
Source: https://energynewsafrica.com
Ghana: Fuel Tanker Explodes On Accra-Kumasi Highway
A fuel tanker with registration number GS 5343-18 exploded on the Kumasi-Accra highway on Monday, April 29, in the morning.
The Ghana National Fire Service (GNFS) which disclosed this on its official Facebook page said the Suhum Fire Station, which is under the leadership of STNO II Darwah Prince Ofobi, received a distress call and quickly responded.
The GNFS said firefighters were able to bring the situation under control within minutes, and they extinguished the fire entirely shortly after.
According to the GNFS, although the head of the Man Diesel Truck got damaged, the timely intervention of personnel of the service saved the situation.
It was not clear whether the tanker was carrying petroleum products.
The cause of the explosion is currently under investigation, even though there were no injuries.
“Despite extensive damage to the tanker’s head and its contents, the quick action of the crew prevented a catastrophic explosion of the tanker truck saving the entire bulk and its contents. The swift response of the crew showcased their dedication and bravery in the face of danger,” GNFS stated.
Source: https://energynewsafrica.com
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