Uganda: Gov’t In Talks With China’s Sinohydro Over Power Line To South Sudan

Uganda is in talks with Chinese firm Sinohydro (SINOH.UL) Corporation Limited for the development of a $180 million power transmission line to allow Uganda to export power to energy-starved South Sudan, the president’s office said. As part of the talks, a delegation led by Yang Yi Xin, Sinohydro Corporation’s vice president, met Uganda’s President Yoweri Museveni on Monday, a statement from Museveni’s office said late on Monday. The project will involve the construction of a 138-km (85.75 miles) high-voltage transmission line to take power to South Sudan, the expansion of two substations and construction of one new one, the statement said. “We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president. Museveni expressed support for Sinohydro’s offer to develop the project, the statement said. In June last year the two countries signed a power sales agreement to allow Uganda to sell electricity to South Sudan. The Chinese firm is completing a $1.5 billion, 600 megawatt hydropower project on River Nile in northern Uganda that is meant to be the source for the electricity exports to South Sudan.   Source: Reuters.com

Benin Gives Niger Temporal Access To Cotonou Port For Oil Shipment To China

The Republic of Benin has provisionally reversed its decision to block exports of crude oil from Niger Republic to China via its Cotonou Port and agreed to hold a meeting between the two countries, the West African nation’s Minister for Water, Energy and Mines said on Wednesday. Last week, three vessels carrying crude oil from Niger and destined for China arrived in Benin, but the Benin authorities prevented them from docking at the Cotonou Port. 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 with Benin. “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,” 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. However, on Wednesday, Benin’s Minister for Water, Energy and Mines, Samou Seïdou Adambi, announced that his country had decided to allow Niger to have access to their port after a meeting with Chinese partners, according to Reuters. “We have decided to authorise the loading of the first vessel in our waters. However, it is important to note that this authorisation is provisional,” Samou Seidou Adambi told reporters after a meeting with the Chinese partners. Benin intends to respect all the agreements within the pipeline project, Adambi said, adding that the country planned to hold a meeting to examine “urgent matters relating to the proper conduct of the pipeline’s export operations.” Relations between Benin and Niger have been strained since the coup in Niger in July, which led the West African regional bloc, ECOWAS, to impose strict sanctions for more than six months. Trade flows in the region were expected to normalise after the West African regional bloc lifted sanctions to dissuade Niger from withdrawing from the political and economic union. “Nonetheless, Niger has kept its borders closed to goods from Benin and not formally told Benin why it has done so,” President Patrice Talon said in a statement last week. Niger’s Prime Minister, Ali Mahaman Lamine Zeine, said on Saturday that Benin’s blockade of Niger’s oil exports violated trade agreements between the two countries and with Niger’s Chinese partners. He added that Niger could not fully re-open its border with Benin for security reasons.         Source: https://energynewsafrica.com

Ghana: Ghana Gas Denies Misleading Report On Gas Pipeline Project Phase II Contract

Ghana’s national gas aggregator, Ghana Gas, has refuted media reports that its Chief Executive Officer, Dr Ben K.D Asante, is under pressure to sign the contract for phase II of the Gas Pipeline Project (GPP2) in favour of a company owned by someone close to the presidency. The company described the report as misleading. Contrary to the claims in the media, Ghana Gas explained in a statement issued by the Head of Corporate Communications, Ernest Kofi Owusu- Bempeh Bonsu , that the award of the contract for the GPP2 project to the selected tenderer, went through a rigorous tender process and complied strictly with Act 663 of the Public Procurement Act 2003, as amended, and all relevant approval obtained. To make the tender process even clearer, the company said following the approval by the Board of Directors of Ghana Gas in 2021 to commence the GPP2 project, management applied and sought approval from the Public Procurement Authority (PPA) to adopt the Restricted Tender Procurement method under section 38 (a) of Act 663 of the GPP2 as amended for EPCC and financing of the GPP2 project. By the Restricted Tender, Procurement Method, the company said tenders were submitted by four firms and upon evaluation of their Technical and Financial bids, the Entity Tender Committee selected the tenderer it awarded the contract following concurrent approval received from the Central  Tender  Review Committee (CTRC) of the Ministry of Finance. “Accordingly, Ghana Gas and the selected tenderer have signed a Project Implementation Agreement to outline the terms and conditions for the EPCC project. The selected tenderer has been incorporated. A special Purpose Vehicle (SPV) to undertake the project and Ghana Gas is currently in negotiation with the SPV to execute the relevant agreements for the implementation of the project,” the company stated. The company said its Chief Executive Officer has not been under any external pressure to sign any deal, thus, describing the reports as mischievous and urged the media to be circumspect by cross-checking facts before publishing stories in order not to harm people’s hard-earned reputation.     Source: https://energynewsafrica.com

Ghana: ECG Stirs Anger On Social Media As It Celebrates MD’s Achievements In Two Years

The Electricity Company of Ghana (ECG) has been celebrating the achievements of its Managing Director, Samuel Dubik Mansubir Mahama (Esq), who assumed office two years ago. Dubik Mansubir Mahama, who was a member of the ECG Board, was appointed by President Akufo-Addo in May 2022 to replace Kwame Agyeman Budu who attained mandatory retirement age. Marking his second anniversary on Tuesday, ECG, in a Facebook post described Mr Dubik Mansubir Mahama’s two years in office as transformational. The ECG wrote: “Yesterday marked a significant milestone as our Managing Director; Mr Samuel Dubik Mahama Esq, achieved two years of exemplary leadership at ECG. Under his guidance, we have witnessed remarkable transformations.” The ECG then highlighted some of the things that have been done since his leadership. According to the ECG, it has implemented digital solutions for seamless payment and billing processes, which ensured convenience for its customers and combating losses and corruption. It again mentioned the revamping of the ECG PowerApp, by making it more user-friendly and accessible, resulting in a surge of active users from 500,000 to over 3.5 million. The company further touted the elevation of its monthly revenue from GH¢400 million to an impressive GH¢1 billion, enabling it to invest in improving services. “Significantly reducing meter request backlogs through the Loss Reduction Project (LRP), injecting 275,000 meters into the system and improving efficiency. “Replacing outdated meters with our enhanced meter management system, ensuring accuracy and reliability for our customers across operational regions,” ECG said. The company concluded its message by asking Ghanaians to join it in applauding its Managing Director for his visionary leadership and thanking its staff for their dedication and support in achieving these milestones. However, some Ghanaians who visited the ECG’s Facebook page to comment expressed varying views. While a few of them commended Mr Dubik Mahama’s efforts so far, others believed the ECG was being insensitive to Ghanaians for asking them to commend him (the MD) when they have been experiencing power outages in their homes. The post had garnered 1.100 likes with 768 comments and 97 shares as of Wednesday morning. https://web.facebook.com/ECGghOfficial/posts/869544838550386?ref=embed_post A social media user by the name of Mckingtorch Makafui Awuku, wrote: “This should be an internal memo. When consumers wanted a timetable for outages, you ignored them. It’s insensitive. Or the customer is not king?” Another user by the name of Sos Lives wrote: “I applied for prepaid metering in January this year for my shop, paid all necessary fees and expectations done. But I’m yet to get my meter fixed because I learned there is no meter available. How do u [sic] guys expect start-ups in this country to do well with this kind of messed up system?”   Source: https://energynewsafrica.com

Nigeria: Three Persons Jailed Six Years Each For Damaging IBEDC’s Electrical Installations

Three people have been sentenced to prison for six years each by the Federal High Court, Abeokuta Division in the Republic of Nigeria, for unlawfully tampering, disconnecting and damaging electrical installations belonging to Ibadan Electricity Distribution Company (IBEDC). The convicts–Chibueze Emmanuel, Michael Genesis and Ojuilape Olaitan–pleaded guilty to the offence and were accordingly jailed by the court presided over by Hon. Justice A. Demi-Ajayi. The facts of the case as presented in court were that Chibueze Emmanuel and Michael Genesis were arrested in January 2022 while Ojuolape Olaitan was arrested in January 2024 and was put before the court. The judge adjourned the case to May 8, 2024, for the review of the facts. After a careful review of the facts, the Hon. Judge sentenced each of the defendants to six years of imprisonment. Commenting on the case, IBEDC noted that energy theft cases which include various offences such as meter bypass and illegal meter tampering have a significant financial loss for the company. As stipulated by the Electricity Act of the Federal Republic of Nigeria, IBEDC said energy theft is recognised as a criminal offence, carrying severe penalties including imprisonment. “We want to send a clear message to our customers that energy theft will not be tolerated. Our collaboration with the Federal Government Special Investigation and Prosecution Task Force on Electricity Offences underscores our commitment to ensuring a fair and just electricity distribution system. Energy theft not only undermines the integrity of our operations but also deprives IBEDC of the revenue necessary to provide quality services to our customers. “We urge our customers to refrain from engaging in any form of energy theft, as the consequences can be severe,” the company said in a statement.     Source: https://energynewsafrica.com

Ghana: ECG ICT Directorate Began Revenue Collection Digitalisation In 2016–ECG Workers’ Response To Bawumia

The staff of the Electricity Company of Ghana (ECG) has challenged a claim by the Vice President of Ghana, Dr Muhamadu Bawumia, that they sabotaged the government’s effort to digitalise ECG’s revenue collection. According to the workers, Dr Bawumia’s claim of sabotage is not only unfounded but also dampens the morale of the hardworking ECG workers, especially those working in the IT Department. Disputing the claim by Vice President Bawumia which seems to suggest that the power distribution company began digitalisation under the current administration, the ECG staff said the ICT Directorate already spearheaded the digitalisation of the ECG payment systems with the rollout of the ECG PowerApp and USSD(*226#) services dating in July 2016. The staff said Dr Bawumia was only invited as a Guest of Honor on the 18th of February 2020 to launch the ECG PowerApp at the Head Office of ECG. “ECG’s financial performance is a matter of public record, as indicated in the company’s 2019 Annual Report. The average monthly revenue for the period 2017 to 2019 was around GHS532.7 million. In the 2023 signed SIGA–ECG Performance Contract, the average monthly revenue was GHS631.3 million as of early 2022. These documents are available to the public on the ECG website. “The ECG IT Department has been at the forefront of digitalising revenue collection for decades, a fact that seems to have been overlooked. The sophisticated ransomware attack attributed to internal sabotage has been proven to be the work of an international cybercriminal group (Lockbit), which further exonerates our members from such erroneous claims,” the workers said in a statement issued by Michael Adu Mattah, General Secretary of Public Utilities Workers’ Union ( PUWU). The ECG staff said they prioritise initiatives that enhance efficiency and service delivery. “We further wish to put on record that the enhancement of aspects of digitalisation into ECG work processes by the current Management has improved convenience to our customers and commitment exhibited by staff has been the pivot of any observed Improvement especially in the area of revenue mobilization.” The workers expressed awareness of attempts to privatise ECG and urged stakeholders to refrain from disparaging hardworking members. “We are fully aware of the several attempts by some key stakeholders to push for the privatisation of ECG and the deliberate attempt to give ECG a bad name and hang it. We urge key stakeholders to refrain from disparaging our hardworking members and instead recognise their contributions to national development, in the face of many challenges including the shortage of critical resources for smooth operations,” the workers said.         Source: https://energynewsafrica.com  

Breathe Battery Technologies Appoints Laurent Cordonnier As CFO

Leading supplier of physics-based adaptive charging software for batteries, Breathe Battery Technologies (“Breathe”) has strengthened its senior leadership team with the appointment of Laurent Cordonnier into the role of Chief Financial Officer, effective immediately. Reporting directly to CEO and co-founder Dr Ian Campbell, and working closely with fellow co-founders Dr Yan Zhao (CTO) and Professor Gregory Offer (Chief Scientist), Cordonnier’s appointment comes at a pivotal time for Breathe as the company positions itself for further expansion and industry leadership. His extensive experience will contribute to the company’s growth trajectory, which can be seen through the announcement of recent partnerships with leading OEMs, including Volvo Cars. In March, Breathe announced that Volvo Cars will implement the latest version of Breathe Charge adaptive charging software in its new generation fully electric cars. Breathe Charge will reduce the time it takes to charge an electric Volvo from 10 to 80% state of charge by as much as 30%*, while maintaining the same energy density and range. As Breathe further scales its customer base, Cordonnier will play a central role in enabling the organisation to continue making batteries better. Cordonnier has joined Breathe from private-equity backed technology companies Native Instruments and Deezer where he served as CFO to drive revenue growth, while also leading successful capital raises. His experience at Native Instruments, which blends software, hardware and creativity to create experiences, positions him perfectly to drive similar outcomes for Breathe. Prior to that, Cordonnier was an investor at Access Industries and an investment banking associate at Morgan Stanley. He has two decades of experience in financial leadership and as CFO of Breathe he is set to play a fundamental role as the company continues its expansion in response to intense demand. Laurent Cordonnier, Chief Financial Officer, Breathe said: “I am excited and honored to join the team at Breathe. The company’s commitment to innovation and its potential to significantly impact the automotive and consumer electronics industries is truly extraordinary. I look forward to working closely with the founders Ian, Yan, Greg and the entire team as we embark on the next phase of growth and continue to deliver on our promise of creating remarkable end-user experiences through software-defined batteries.” Dr Ian Campbell, Co-founder and Chief Executive Officer, Breathe said: “We are delighted that Laurent has chosen to join Breathe as our CFO. This new appointment reflects the growing capability of Breathe to proactively address existing gaps in battery technology. We set out to make batteries better and Laurent’s wealth of experience has found fertile ground here as we expand our production programmes and further invest in technologies.” Since its inception, Breathe’s focus has been on building battery technology to contribute to a faster, better and more sustainable electrification of the world. It exists to enable world-class OEMs to do more with the power they have, unlocking performance from existing batteries to deliver superior end-user experiences. Unlike traditional methods, Breathe’s adaptive battery charging software dynamically controls the battery in real-time with demonstrated benefits in charging and user experiences. This includes delivering longevity and optimal performance gains, while simultaneously supporting battery health and sustainability efforts. Cordonnier’s appointment also comes off the back of recent investment from Volvo Cars Tech Fund in March and a $10 million series A led by Lowercarbon Capital, one of the world’s largest climate tech investors, with participation from Speedinvest, who led Breathe’s seed round in 2019. Cordonnier began his career as an auditor with Arthur Andersen and PricewaterhouseCoopers. Laurent holds a Master of Science in Mechanical Engineering from San Jose State University and an MBA from MIT Sloan School of Management.      

Illinois State Treasurer Urges Exxon Shareholders To Vote Against CEO Woods, Director Hooley

The Illinois state treasurer has urged Exxon Mobil shareholders to vote against the election of Executive Chair and CEO Darren Woods, as the oil major pursues a lawsuit against two shareholders, a filing showed on Monday. The treasurer has also recommended voting against Lead Independent Director Joseph Hooley during the company’s annual shareholders meeting scheduled to take place on May 29. Exxon, which is frequently the focus of critical shareholder resolutions, struck back earlier this year when it filed a lawsuit seeking to block a vote on a climate proposal submitted by two small activist investors. While the investors responded by dropping the proposal, Exxon has refused to drop the legal action against them. “The actions taken by the company signify poor judgment and oversight by board leadership,” the filing cited the treasurer as saying in a letter dated May 9. Exxon did not immediately respond to a Reuters request for comment. Last Friday, Glass Lewis had recommended investors vote against Hooley, citing concerns about Exxon’s “unusual and aggressive tactics” in pursuing a lawsuit against activist investors.     Source :Reuters

Zambia: Managing Director Of Zesco Limited Sacked Over Load-Shedding

The Managing Director of Zesco Limited, Zambia’s power utility company, Mr Victor Mapani, has been reportedly sacked, according It is not clear what caused his dismissal but it is likely his dismissal has to do with the ongoing load-shedding in the southern African nation. In a WhatsApp chat with a Zambia-based journalist, Francis, he said Mr Mapani is alleged to have hiked electricity tariff a week ago without consulting the government, despite the debilitating power crisis in the country. According to him, Mr Mapani was forced to proceed on leave with no sign of his return. Zesco Limited began eight hours of load-shedding in Lusaka and surrounding towns in March this year. After a few weeks, the company reviewed the load-shedding hours upwards. On Sunday, May 12, 2024, Zesco Limited reviewed the load shedding hours to between 12 and 22 hours. A few weeks ago, some Zambians who are into small-scale and medium enterprises demanded the resignation or dismissal of the Managing Director of Zesco Limited. In the petition which was signed by Daimone Siulapwa, the group stated that the unprecedented levels of load shedding have plunged homes, businesses and essential services into extended periods of darkness. “This chronic power shortage has had devastating consequences on our daily lives, hindering productivity, disrupting education, compromising healthcare, and stifling economic growth. “Despite repeated assurances from ZESCO’s management, led by Managing Director Victor Mapani, the situation has only worsened, with no tangible solutions in sight. Instead of addressing the root causes of the power crisis and implementing effective measures to alleviate the burden on citizens, ZESCO’s leadership has failed miserably in fulfilling its mandate,” a portion of the petition said. The group accused the Managing Director and his team of grossly failing to meet the expectations of the Zambian people, stating that “his inability to provide reliable and sustainable power supply demonstrates a lack of leadership and competency that cannot be tolerated any longer.” They demanded that the top management salaries should also be cut by 25 per cent. “The resignation of Managing Director Victor Mapani and salary cuts for the remaining management team are necessary steps towards restoring the integrity and credibility of ZESCO and ensuring that the citizens of Zambia receive the reliable and affordable electricity they deserve.”   Source: https://energynewsafrica.com

Ghana: Gas Explosion At Spintex Kills Two Persons, Leaves Five Seriously Injured

Two people died, with five others sustaining varying degrees of injuries following an explosion that occurred at Joyea Construction at  Spintex, a suburb of Accra, the capital of Ghana, Friday afternoon. The remains of the deceased have been deposited at a morgue while the injured persons are hospitalised and responding to treatment. Confirming the incident, the Tema Regional Public Relations Officer of the Ghana National Fire Service, DOI Ebenezer Yenzu, said his outfit received a distress call at about 2:20 pm, Friday, and quickly, a team of firefighters was dispatched to the scene. “The call was about a blast at Joyea Construction and had to respond immediately. We, then, dispatched the personnel at the fire station around Kasapreko to the scene. “Joyea is into construction works, roofing sheets, trusses and other things. We gathered that one of the oxyacetylene gas tanks used as part of metal fabrication ruptured. Oxyacetylene is obtained by combining acetylene gas and oxygen, and it is used for welding and cutting of metal,” he narrated in an interview with Accra-based Joy News. He stated that there was no fire generated in the explosion. However, he said the fire team would be finding out the exact cause of the explosion as several factors could play out. “Several possibilities could lead to the oxyacetylene tank rupturing. It could be due to leakage from the tank, the nozzle, whether the concentration level was too high, positioning of the tank, exposure to heat and other factors. Our investigations will look at all these,” DOI Yenzu explained. He said finding the exact cause would help avert a recurrence in future. Asked if the management of Joyea Construction had shared any information, he said they would engage management and the staff after ensuring the place was safe enough. “Aside from ensuring safety after the explosion, the Fire Service is monitoring the condition of the five injured,” DOI Yenzu added. DOI Ebenezer Yenzu advised companies dealing in industrial materials of such nature to continuously monitor their location. “You need to always check the temperature. Despite the accident happening in an open space, the proximity could be an issue. When dealing with welding equipment, ensure they are a distance from where you’re doing your hot work. “Periodically, check your hoses, the gauge and nozzle if there are any leakages and anything that matters to ensure safety for all,” he cautioned.           Source: https://energynewsafrica.com  

Ghana: Council of State Meets GRIDCo, VRA And EGG Over Power Sector Issues

The members of the Advisory Body of the Government of Ghana, the Council of State, have met with state-owned power sector players to interact with them on the happenings in the power sector. The power sector agencies represented at the meeting were the Board and Management of GRIDCo, Volta River Authority (VRA) and the Electricity Company of Ghana (ECG). The Council of State sought more information and clarification on the current state of the power sector to aid the Council in performing its advisory functions effectively. GRIDCo outlined its role in the energy value chain, the capacity of its transmission infrastructure, and the factors influencing power delivery in the NITS. VRA and ECG briefed the Council on their respective operations and current challenges. There were extensive discussions covering the role of all stakeholders in resolving the issues facing the power sector. Amb Kabral Blay-Amihere, Chairman of the Board, reiterated GRIDCo’s commitment to collaborating with other stakeholders in the energy sector to ensure a robust network and reliable power delivery to Ghanaians. The Council of State expressed gratitude to the power sector players for their significant contributions to the country’s industrialisation agenda and advised on the need to work together to address challenges in the sector.  

      Source: https://energynewsafrica.com  

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