Russia To Cut Oil Production By 350,000 bpd In April
Russia will be cutting oil production instead of exports in the second quarter of 2024 so that all OPEC+ producers that reduce output contribute equally to the cuts, Russian Deputy Prime Minister Alexander Novak said on Friday.
“This is a move to ensure an equal contribution of all countries to the production cuts,” Novak was quoted as saying by Russian news agency Interfax.
“The moment has come when we are reducing production instead of exports,” Russia’s top oil official added.
When the OPEC+ members announced in early March their intentions to extend the cuts into the second quarter, Russia changed its production/ export cut plan and said that it in the second quarter it would reduce supply by 471,000 bpd in the form of cuts to oil production and exports.
In April, Russia will reduce production by 350,000 bpd and exports by 121,000 bpd. In May, the 471,000 bpd reduction would be in the form of a 400,000-bpd cut to production and 71,000 bpd cut to exports, and in June the Russian supply cut would be 471,000 bpd entirely from production reductions.
Output cuts will be most of the extra Russian supply cut, and they could be the result of reduced refining capacity with maintenance coming in Q2 and refinery rates estimated to have slumped due to Ukrainian drone attacks on Russian refineries. These attacks are estimated to have cut Russia’s crude processing capacity and, in the absence of spare storage capacity, Moscow needs to cut output.
According to Reuters estimates, the amount of Russian oil refining capacity that has been taken offline due to Ukrainian drone strikes is 14% of the total refining capacity.
Calculations show that 900,000 barrels per day of refining capacity have been taken offline by drone strikes, Reuters reported earlier in the week. This includes Lukoil’s Norsi and Volgograd refineries, and Rosneft’s Kuibyshev and Ryazan refineries, among others.
Source: Charles Kennedy
Ghana: Gov’t Suspends Price Stabilisation And Recovery Levy On Fuel For Three Months
The Government of Ghana has directed the National Petroleum Authority (NPA) to suspend Price Stabilisation and Recovery Levy (PSRL), one of the levies on petroleum products, for three months effective April 1, 2024.
Consequently, the price of petrol will be reduced by 16 pesewas while diesel and LPG will be reduced by 14 pesewas respectively.
This is expected to cushion consumers from paying high costs of fuel at the pumps due to rising global prices.
A letter signed by the Deputy CEO of NPA, Perry Okudzeto, to all the players in the oil and marketing distribution sector said the suspension is effective from 1st April to 30th June 2024.
“The Ministry of Finance, through the Energy Ministry, has directed the National Petroleum Authority (NPA) to remove the price stabilisation and recovery levy (PSRL) from price build in accordance with section 2(b) of the Energy Sector Recovery Levies Act 2015(Act 899) amended 2021 Act 1064 for three months.
“In view of the above directive, the NPA, hereby, wishes to inform all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) that the PSRL has been revised for the period 1st April to 30th June 2024,” the letter said.
Despite the suspension of the PSRL, fuel prices are likely to witness a marginal increase due to the exchange rate and rising cost of finished products on the international market.
Currently, the three major OMCs namely GOIL, Shell and TotalEnergies are selling petrol and diesel at Gh¢13.49 per litre and Gh¢14.49 per litre respectfully.
Source: https://energynewsafrica.com
South Africa: Eskom Cuts Off Cape Town School For Failing To Pay R39,000 Bill
A primary school in Delft, Cape Town owed Eskom about R39,000 and has been without electricity since February.
The education department is trying to assist the school but this is not the first time it has been bailed out.
Vergenoegd Primary is a non-fee paying school, which means it is allocated money by the Western Cape Education Department (WCED).
But the school is responsible for using that money, including ordering stationery and textbooks, paying water and electricity accounts and undertaking maintenance.
The school has over 1,500 learners.
Despite attempts to make payment arrangements with Eskom, a teacher who asked not to be named, says the power utility has been unwilling to assist the school.
The teacher said the staff were shocked when Eskom cut the school’s power. The teacher said the school had discovered that its bursar office missed payments from August 2023.
By the time the fault was discovered, Eskom said they had accumulated arrears of about R28,000, which the school could not afford to pay.
On 9 March, the school held a food fair on its premises to raise emergency funds to pay their outstanding bill. They raised about R20,500. It was apparently paid to Eskom the next week.
According to the teacher, the school contacted Eskom again after making the payment to ask that their electricity be reconnected, but Eskom refused because the school was still many thousands of rands in arrears.
In email correspondence between Eskom and the school, which GroundUp has seen, Eskom confirmed it had received the school’s payment of R20,500.
But since the school’s account was already R39,000 in arrears, it needed to pay at least R15,000 of the R18,500 that it owes, as well as a R2,070 reconnection fee before electricity could be reconnected.
The teacher said the school is still investigating why its bursar’s office had failed to pay the power utility.
WCED spokesperson Bronagh Hammond said the district office is aware of the issues and is working with the school to resolve this matter.
Hammond said Vergenoegd Primary received more than R1.8-million in 2023 to cover expenses like municipal services and utility accounts. “As a Section 21 school, it receives the total allocation to manage accordingly,” she said.
Hammond said that in the last two years, the WCED has assisted the school with nearly R480,000 to pay its outstanding municipal debt.
Eskom spokesperson Kyle Cookson said that the power utility had notified the department’s district office before disconnecting the school on 27 February.
Cookson confirmed that the school remains without electricity.
“The school ran up arrears and made a short payment on 12 March after they were disconnected. This payment was not sufficient to cover the arrears as well as the reconnection fee,” he said.
Cookson did not comment on the allegation that Eskom was not willing to agree to a payment arrangement with the school.
Source: mybroadband.co.za
Nigeria: National Grid Restored After System Disturbance –TCN
Nigeria’s transmission company, TCN, has successfully restored the national grid after a system disturbance, which occurred on Thursday, March 28, 2024.
The company said that the disturbance occurred at 4:28 pm on Thursday with full recovery of the grid achieved by 10:00 pm same day.
A statement issued by Ndidi Mbah, TCN’S General Manager Public Affairs said that according to a report from the National Control Centre, NCC, in Osogbo, the system disturbance was triggered by a significant reduction in generation capacity, primarily due to gas constraints.
”This reduction led to a rapid decline in system frequency. This created a sudden imbalance in the grid.
”The imbalance in grid stability was exacerbated by the sudden tripping of Egbin generation turbine 3, resulting in an additional loss of 167MW load and the subsequent collapse of the grid,”she said.
She said that the grid had since been recovered and was stable, adding that it was currently transmitting all the generated power to distribution load centres nationwide.
She expressed TCN’s unwavering commitment to addressing grid challenges and actively working to mitigate disruptions.
”In instances where challenges extend beyond TCN’s control, the company collaborates with other stakeholders in the power sector value chain to minimise the impact, and swiftly restore the grid to normal operation,” she said.
Source: https://energynewsafrica.com
Nigeria: Nigerians Thrown Into Darkness As National Grid Collapses Again
Nigerians have been thrown into darkness as the country’s national electricity grid, centrally managed from Osogbo, Osun State, collapsed at approximately 4:30 pm on Thursday, leaving millions of homes and businesses without power.
This is the fourth time the grid is collapsing in the first three months of the year, adding to challenges that have long plagued Nigeria’s power sector.
Local media report suggests that feeders of various distribution companies, spanning the nation’s 36 states, were rendered inactive, resulting in widespread blackouts across the country.
The grid’s output, which stood at 2,984 megawatts as of 4 pm, plummeted to zero within the span of an hour, with all 21 plants connected to the grid ceasing operations by 5 pm.
“This incident marks another setback for Nigeria’s electricity sector, which has been marred by persistent issues despite privatisation efforts aimed at revitalisation,” Business Day reported.
Over the past decade since privatisation, the grid has experienced a staggering 141 collapses, underscoring the magnitude of the systemic challenges facing the industry.
As of the time of reporting at 6:00 pm, the Azura Power Plant was the sole facility contributing to the grid, albeit with a modest output of 54 megawatts.
Major power generation plants such as Egbin, Afam, Geregu, Ibom Power, Jebba, Kainji, Odukpani and Olorunsogo, among others, remained dormant, further exacerbating the electricity deficit nationwide.
Source: https://energynewsafrica.com
Uganda: Kenya Finally Expresses Willingness To Issue Oil Import Licence To Uganda’s UNOC
Kenya has finally expressed willingness to issue oil importation licence to the Ugandan National Oil Company (UNOC) to enable the East African nation to import fuel directly through Kenya Pipeline Company (KPC).
The move is likely to end the feud between the two East African nations which has lasted for some months.
Uganda went to the regional court in December last year to fight for the licence that would allow the use of KPC’s infrastructure for oil import.
Uganda’s decision to use UNOC to import fuel directly followed an investigation that showed that Kenyan oil marketers who were selling oil to Uganda were charging exorbitant prices and making huge profits.
The issue infuriated President Yoweri Museveni and he directed that UNOC should import petroleum products directly using KPC.
Kenya refused to issue licence to Uganda, compelling it to file a case at the East African regional court.
Although the case is yet to be determined, Kenya has given indication of its willingness to issue licence to Uganda.
Kenya’s Energy Cabinet Secretary Davis Chirchir on Wednesday said work was in progress to issue a permit that would allow UNOC to import fuel directly through KPC.
“You will see UNOC getting a licence and then we will see how to work together because usage of our pipeline is an opportunity for us,” Mr Chirchir said.
“They will employ Kenya Pipeline Company’s infrastructure so there will be no loss of opportunity, the transporter will remain to be KPC. We are working closely with Uganda to resolve the challenge,” he added.
Chirchir’s revelations came days after a case filed at the High Court in Machakos to block the licensing of UNOC was withdrawn.
Sources said the licence is likely to be issued next month. The licensing could end the dispute and allow UNOC to buy fuel from Vitol Bahrain.
Source: https://energynewsafrica.com
Ethiopia Earns US$1 Billion From Power Export To Neighbours
The Republic of Ethiopia has earned more than US$1 billion from electricity export to neighbouring countries in 18 months, Habtamu Etefa, Minister for Water and Energy, said.
Habtamu, who was speaking to the Ethiopian News Agency, mentioned that the performance underscores the nation’s burgeoning role as a regional energy powerhouse, catalysing regional integration.
“We are successfully supplying energy to Sudan, Djibouti and Kenya,” the Minister noted, lauding the pivotal interconnection between Ethiopia and Kenya’s power grids that extend the possibility of exports as far as South Africa via the East African Power Pool.
He further pointed out that “Ethiopia is blessed and conveniently positioned to provide clean, inexpensive electricity without harming the environment, fueling escalating demand.”
With a staggering 93 per cent of Ethiopia’s electricity derived from hydropower, the country plans to extend exports to South Sudan, it was learned.
The Minister revealed that the nation has also made significant strides domestically, with 4.5 million customers connected to the grid in the past six months alone.
However, challenges persist due to the scattered population with only 52 per cent accessing power at present.
The remaining 48 per cent residing off-grid necessitates a concerted push towards decentralised solutions, the Minister said.
To bridge the gap, the ministry is actively implementing off-grid projects by harnessing solar, wind, biogas and geothermal energy while promoting clean cooking technologies.
Habtamu disclosed that ambitious initiatives have been underway in Oromia and the Somali regions to leverage solar power until grid connectivity is established in remote localities.
As Ethiopia forges ahead in optimising its diverse energy portfolio, the nation’s electricity exports emerge as a resounding testament to its pivotal role in fostering regional cooperation, economic development, and sustainable growth through renewable energy leadership.
Source: https://energynewsafrica.com
Ghana: ECG Complies With CWM Order By PURC
The Electricity Company of Ghana (ECG), the power distribution company responsible for power supply in southern part of Ghana, has complied with the directive by the regulator, Public Utilities Regulatory Commission (PURC) regarding the Cash Waterfall Mechanism (CWM).
In a document sighted by this portal, out of the five tasks given to the power distribution company, three (3) had been completed.
A week ago, the Commission ordered the ECG to distribute funds from the Cash Waterfall Mechanism (CWM) by March 25, 2024.
PURC explained that the order, which was issued under Sections 3 and 24 of the Public Utilities Regulatory Commission Act, 1997 (Act 538), was a result of some major observations it had made concerning a general decline in the quality-of-service delivery, including increasing power outages across the ECG service areas from January 1, 2024, to date.
Source: https://energynewsafrica.com
More Than 20% Of Global Oil Refining Capacity At Risk, Analysis Finds
More than a fifth of global oil refining capacity is at risk of closure, energy consultancy Wood Mackenzie found in analysis published on Thursday, as gasoline margins weaken and the pressure to reduce carbon emissions mounts.
Of 465 refining assets analysed, the consultancy ranked about 21% of 2023 global refining capacity at some risk of closure.
Europe and China house the greatest number of high-risk sites, putting about 3.9 million barrels per day (bpd) of refining capacity in jeopardy, Wood Mac found, based on its estimate of net cash margins, cost of carbon emissions, ownership, environmental investment and strategic value of refineries.
There are 11 European sites that account for 45% of all high-risk plants, the report found.
About 30 European refineries have already shut down since 2009, data from industry body Concawe shows, with nearly 90 still in operation.
This spate of closures have been brought on by competition from newer and more complex plants in the Middle East and Asia as well as the impact of the COVID-19 pandemic.
Gasoline margins are expected to weaken by the end of this decade as demand declines and sanctions on Russia ease while expected carbon taxes should also start to bite, the Wood Mac analysis showed.
Operating costs could go up so much that “closure may be the only option”, said Wood Mac senior oils and chemicals analyst Emma Fox.
Meanwhile, Nigeria’s huge Dangote oil refinery could bring to an end decades-long gasoline trade from Europe to Africa worth $17 billion a year, heaping pressure on European refineries already at risk of closure from heightened competition.
The Dangote refinery, with capacity of up to 650,000 bpd, began production in January but was not included in Wood Mac’s analysis.
Source: Reuters.com
Nigeria: Rumours Of Reduction In PMS, AGO Prices Are False, Says NNPC
The Nigerian state oil company, NNPC Limited, has denied media reports suggesting a price adjustment for Premium Motor Spirit (PMS) and Automative Gas Oil (Diesel) at its retail outlets nationwide.
The company asserts that these reports are false and urged Nigerians to disregard them entirely.
In a statement issued by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Limited, the company reaffirmed its commitment to sustaining the current sufficiency in petroleum products supply across all its retail stations in the country.
There were reports in some sections of the media on Monday that the ex-depot price for PMS had reduced from N640 to N630 for the independent oil marketers, while NNPC Ltd. maintained its N570 price.
The N630 new ex-depot price for independent marketers is just one per cent reduction following decision by the NNPC Ltd. to give product directly to the marketers, while maintaining its N570 ex-depot price.
This was against the former arrangement where the independent marketers get supply from private depots.
The development provoked reactions from Nigerians who assumed that NNPC Ltd. had reduced pump price at their retail outlets from N617 to N570.
Source: https://energynewsafrica.com
Nigeria: Crisis Rocks EKEDC Board Over Attempt To Push MD Out Of Office
Trouble is brewing in Eko Electricity Distribution Company (EKEDC), one of the power distribution companies in the Federal Republic of Nigeria.
The Managing Director and CEO of the company, Dr Tinuade Sanda, was allegedly sacked by the Chairman of the Board, Dere Otubu, in compliance with orders of the regulator, Nigeria Electricity Regulatory Commission (NERC).
However, the board members, in a show of bravado, cancelled the purported termination of the MD’s appointment.
In a statement, the Director and Chairman Legal and Regulatory Committee of EKEDC, Babor Egeregor, described the order as unambiguous, incapable of and unyielding to plural interpretations.
He said there was nowhere in the order where NERC requested the removal of any staff either seconded to or hired by EKEDC except those connected to the alleged fraud and negligence i.e Wola Joseph Condotti, Sheri Adegbenro and Aik Alenkhe.
According to him, NERC’s directives were issued to compel the Board of EKEDC, following picketing by the union and unrelenting staff protests, to act appropriately in the face of a determined position of a majority of the board members to cover up the alleged use of ghost workers together with the alleged fraud and protect Wola Joseph Condotti especially.
“It has come to my notice that by a letter dated 26th of March 2024, the Chairman of Eko Electricity Distribution Company (EKEDC), Mr Dere Otubu, purportedly terminated the Contract of Employment of Dr Tinuade Sanda, the MD/CEO of EKEDC, allegedly in compliance with Orders/Directives issued by the Nigerian Electricity Regulatory Commission (NERC).
“The said Order of the NERC, herein displayed, are unambiguous, incapable of and unyielding to plural interpretations. There was nowhere in the Order where NERC requested the removal of any staff either seconded to or hired by EKEDC EXCEPT those connected to the alleged fraud and negligence.
“NERC’s directives were issued to compel the Board of EKEDC, following picketing by the union and unrelenting Staff protests, to act appropriately in the face of a determined position of a majority of the Board members to cover up the alleged use of ghost workers together with the alleged fraud and protect Wola Joseph Condotti especially.
“Mr Dere Otubu’s letter, therefore, was done in bad faith and vengeful revenge against the MD/CEO for escalating the alleged fraud and issuing queries against one of his protégés, whom he has desperately sworn to protect by all means. The Acting DG of the BPE, representing the government on the Board of EKEDC, vehemently rejected the attempt to cover up the alleged crime and insisted on compliance with the punishment prescribed in the Conditions of Service.
“Rather than comply with the Orders of NERC, a recourse to subterfuge was hatched with the purported termination and the publication of different misleading headlines such as “FG Sacks MD of EKEDC.
“Tinuade Sanda relieved of her position as MD, Eko Distribution Company”. There are no doubts about a deliberate agenda and unconcealed mischief to misread the Orders of the NERC to malign Dr. Sanda’s reputation for daring to escalate and issue queries to the suspects for alleged fraud through the use of ghost workers for three years, and continuous payment of salaries to exited staffs despite personally receiving their resignation letters.
“Similar queries were issued to Sheri Adegbenro, the Chief Audit and Compliance Officer and Aik Alenkhe, the Chief Human Resources Officers respectively for their failure and gross negligence to audit and detect fraudulent payments on payroll for over three years.
“We are also aware of a purported press release appointing Mrs Rekiat Momoh as the Acting MD/CEO.
“The Board of EKEDC, on which I sit has neither met nor decided on the purported appointment of Mrs. Rekiah Momoh as Acting MD/CEO, except Mr. Otubu and his close circle of colleagues have transformed themselves into “The Board”. I and all well-meaning members of the EKEDC Board, I believe, should vehemently distance themselves from this contrivance.
“The Board is not a one-man show, and matters are to be collectively deliberated on and approved by Board members. Mrs Momoh is the Chief Commercial Officer of EKEDC and remains so.
“Mr Otubu and his co-travellers have chosen to cherry-pick the exhaustive interaction with NERC where one of the Commissioners wondered why no one was yet to be tried or in prison for these grievous allegations and how to recover lost funds part-owned by the federal government. They are more focused on settling scores with our performance-driven MD/CEO, Mrs Tinu Sanda.
“At EKEDC, we are known for due process and legality, and anything that would take away from our avowed commitment to due process and corporate governance would be resisted.
“Therefore, let it be known that Dr Tinuade Sanda remains the MD/CEO of Eko Electricity Distribution Company and has since her assumption of office as the MD/CEO, turned EKEDC around for good, with very great milestones and achievements which every sector player recognises. She made EKEDC the number-one distribution company in Nigeria.
“The Investors, Board, and Management of EKEDC believe firmly in her leadership and look forward to many more record-setting and breaking moments. This is for the information of the general public and all NESI stakeholders.”
Source: https://energynewsafrica.com
South Africa: We Won’t Abandon Coal-Fired Power Plant Anytime Soon – Mantashe Declares
South Africa has indicated that it is not ready to abandon its coal- fired power plant in favour of renewable energy anytime soon, thereby urging those who hold that view to be prepared to be disappointed.
The country’s Minister for Mineral Resources and Energy, Gwede Mantashe, declared the position of South Africa in an interview with Bloomberg and carried by Oilprice.com
“If you’re expecting that South Africa will make a quick shift away from coal-fired power in favour of green energy, be prepared to be disappointed.
“Expecting South Africa to quickly give up on coal-fired power would be “very wrong,” Mr. Mantashe said.
According to him, South Africa would continue to rely on coal and other fossil fuel-generated power, even as richer nations push the country towards greener forms of energy, because it is less intermittent than green energy.
“This belief that you can leave coal and move to renewables is very wrong; … it will never work,” he stated.
However, South Africa’s coal-fired power is not without problems. Its state-run electric company, Eskom Holdings SOC Ltd, is already struggling with electricity outages because the country’s coal-fired power stations are not all operating 24 hours a day like they could be. Breakdowns and extended impromptu maintenance have put a serious crimp in the country’s power generation; thanks to load-shedding for as much as 12 hours a day in some cases.
Nevertheless, coal-fired power will have a long life in South Africa, Mantashe has vowed.
He acknowledged the errors the country had made in its power industry, citing delays in building out new power plans and a critical design flaw in the current plants.
“That is one of those mistakes and we are learning from it,” Mantashe pointed out.
South Africa has been reluctant to jump onto the green energy transition train for quite some time, saying last October that the country had no plans to curtail its oil and gas operations in favour of green energy and even announced plans to boost its oil and gas exploration activity in the future as it tries to shore up energy security and reduce its energy imports.
Coal currently accounts for roughly 80 per cent of the country’s energy mix and is the world’s fifth-largest coal exporter.
Source: https://energynewsafrica.com
Ghana: Energy Minister Inaugurates Reconstituted TOR Board
Ghana’s Energy Minister, Dr Matthew Opoku Prempeh has inaugurated the reconstituted board of the Tema Oil Refinery.
The eleven-member Board, chaired by Mr Leon Kendon Appenteng, was inaugurated at the Ministry of Energy, Accra, on Tuesday, March 26, 2024.
Other members of the Board are Dr. Antoinette Tsiboe-Darko, Mrs Edith Sapara Grant and Nana Akua Bakoma Prempeh.
The rest are Mrs Loraine Crabbe Ababio, Mr Alfred Thompson, Mr Joseph Mensah Browne, Mr Kwame Baffoe, Mr Herbert Ato Morrisson and Kofi Mocumbi Tagoe, the new Managing Director of TOR.
Inaugurating the Board, Energy Minister Dr Matthew Opoku Prempeh charged the members to use their good offices to champion the drive to bring in new strategic partners to help make the company viable and responsive to the challenges and opportunities of the time.
“The Tema Oil Refinery has a longstanding and chequered history that I am sure we are all familiar with. Indeed, two years ago this month, I had the duty of inaugurating a substantive board after and Interim Management Committee had replaced an earlier substantive board. In spite of several interventions in the past, TOR seems to remain in distress. This cannot, and must not continue,” the Minister said.
He continued, “There is enough demand in the country for what TOR’s core mandate stands for, and I urge you to see new entrants into the market more as your collaborators than your competitors per se.”
He urged TOR to make it a deliberate effort to ensure that it becomes a modern day 21st century organisation centered on profit-making as a state-owned company supporting the government of the day.
“I urge you to be mindful that demand is not stagnant, and TOR must work hard towards becoming a viable player in this industry and to take advantage of the demand for your services,” he concluded.
Source: https://energynewsafrica.com
Ghana: ECG Board Chairman Keli Gadzekpo Resigns
The Board Chairman of the Electricity Company of Ghana (ECG), Mr Keli Gadzekpo, has resigned from his position.
According to Accra-based Asaase Radio owned by a cousin of the Ghanaian President Nana Akufo-Addo, the ECG chair tendered his resignation letter to the office of the President on Tuesday, March 2024.
Keli cited personal reasons for his decision to resign, the report said.
This portal understands that officials of ECG met the Minister for Energy, Dr Matthew Opoku Prempeh, at the Ministry on Tuesday morning to discuss the recent power outages and other pertinent issues.
It is believed that Mr Gadzekpo sent his resignation letter to the President after the meeting.
Keli Gadzekpo was appointed Board Chairman of ECG in 2017.
He currently serves as the Board Chairman for Enterprise Group PLC.
A few days ago, this portal picked pieces of information from the industry that the ECG Board chair or MD was likely to leave office.
It was not clear whether it was the President who was going to relieve one of them or one of them was going to exit by himself.
Mr Keli Gadzekpo’s exit does not come as a surprise to this portal given the fact that it picked the hint a few days ago.
The ECG which is a power distribution company responsible for power supply in southern Ghana has come under criticism for refusing to publish a load-shedding timetable to guide electricity consumers.
Power supply in the West African nation has been erratic since last year.
Recent calls by a section of Ghanaians for a load-shedding timetable irked the sector Minister Dr Matthew Opoku Prempeh and called those making such demands as wishing evil for their country.
Source: https://energynewsafrica.com