Economy Minister Confident Germany Could Phase Out Coal By 2030
Germany continues to target phasing out coal by 2030, German Economy Minister Robert Habeck of the Green party told Bloomberg TV in an interview on Friday.
Germany has decided to accelerate the coal phase-out to 2030, from an earlier planned date of 2038, but Europe’s largest economy has reactivated some mothballed coal-fired power plants since last year when Russian natural gas supply ceased.
Earlier this week, Habeck’s coalition partner and finance minister, Christian Lindner, questioned the 2030 coal phase-out timeline.
“Until it is clear that energy is available and affordable, we should end the dreams of phasing out electricity from coal in 2030,” Lindner said in an interview with the German daily Koelner Stadt-Anzeiger published on Thursday.
On Friday, economy minister Habeck told Bloomberg TV that it is “absolutely” the plan to retire all coal plants by 2030.
The EU raising the cost of carbon emissions will allow the market to solve the issue, according to Habeck.
“I think past 2030 you won’t earn money with coal power plants anymore,” the minister told Bloomberg.
Without Russian gas, last year’s energy and gas crisis in Germany, and in Europe, has been keeping utilities and governments on edge and ready to have mothballed coal-fired power plants on stand-by in the coldest winter days to ensure the security of electricity supply.
Last month, Germany’s government said it was bringing back online several coal-fired units for this winter in an attempt to save natural gas and avoid power supply shortfalls.
Some coal-fired blocks operated by RWE and LEAG will be temporarily reactivated until March 2024 as a precautionary measure to safeguard electricity supply in the coming winter.
Those coal units were already operational during the 2022/2023 winter when Germany was shocked into a severely reduced gas supply with the end of Russian pipeline deliveries. The backup coal capacity was put on stand-by this summer until the government now decided to reactivate them for the winter.
Source: Oilprice.com
Ghana: VRA Ends Controlled Spillage From Akosombo Dam
The Volta River Authority (VRA), managers of Akosombo and Kpong Hydroelectric Power Dams has ended the controlled spillage from the Akosombo dam, which began on September 15, 2023.
A statement issued by the Corporate Affairs and External Relations Unit said that notwithstanding, “VRA is committed to continuing its relief and rehabilitation efforts until lives and livelihoods are restored.”
“VRA wishes to take this opportunity to acknowledge the various Government agencies and stakeholders for their support to the impacted communities,” the statement concluded.
The spillage led to flooding in some communities at the downstream of the Akosombo Dam, displacing several thousands of people.
According to the National Disaster Management Organization (NADMO), about 31,000 residents in South Tongu, North Tongu, Central Tongu, Asuogyaman and several other areas were impacted by the spillage.
Source: https://energynewsafrica.com
Ghana: Let’s Create Safe Working Environment In All Our Facilities–GRIDCo CEO Tells Staff
Ghana’s power transmission company, (GRIDCo), has held a durbar to climax its annual Safety Awareness Week with management promising to create a safe and healthy working environment in all of GRIDCo’s facilities.
This year, GRIDCo started Safety Awareness Week with the Interdepartmental Safety Quiz Competition in Takoradi, followed by a health talk on breast cancer and screening in all its work locations and a GRID walk in Accra.
Ing Robert Ben-Smith of Accra Area emerged as the overall winner of the quiz competition.
During the Corporate Safety Durbar on Friday, October 27, 2023, prizes were presented to all staff who emerged winners for both technical and non-categories of the quiz competition.
The Ghana National Fire Service was also recognized for its substantial support and proactive approach to assisting GRIDCo.
Speaking on the theme: ‘A safe and healthy working environment is a fundamental principle and right at work’, the Chief Executive Officer of GRIDCo, Ing Ebenezer Kofi Essienyi, noted that the theme reinforced some provisions in the Labour Act 2023 Act (651) Section 9(c), 10(a) 118(1) which imposes a duty on employers to take all practicable steps to ensure that the worker is free from risk of personal injury or damage to his or her health during the worker’s employment or while lawfully on the employer’s premises.
He told the staff that they all have a role to play in creating a safe and healthy working environment in all of GRIDCo’s facilities.
Ing. Kofi Essienyi said management would do their best to ensure that GRIDCo creates a safe and healthy working environment by ensuring that regular inspections are carried out at all work locations, provide the needed tools, equipment, and training to meet the mandate stated under the company’s core values and provide the needed resources to implement all the recommendation in the safety inspection or audit report.
He tasked the Safety Management Team to strive to conduct regular work area inspections and eliminate potential hazards, make sure all the staff is properly trained and ensure contractors comply with the provisions in the contract safety manual, ensure the staff has requisite personal protective equipment, and continue the installation of safety signs, signage and messages.
“As management, we are committed to providing all the resources needed within the constraints of our cash flow to implement the initiatives mentioned,” he assured.
Ing. Kofi Essienyi charged the staff to cultivate the habits of medical checkups and exercise their bodies daily to keep fit.
Source: https://energynewsafrica.com
Ing. Kofi Essienyi said management would do their best to ensure that GRIDCo creates a safe and healthy working environment by ensuring that regular inspections are carried out at all work locations, provide the needed tools, equipment, and training to meet the mandate stated under the company’s core values and provide the needed resources to implement all the recommendation in the safety inspection or audit report.
He tasked the Safety Management Team to strive to conduct regular work area inspections and eliminate potential hazards, make sure all the staff is properly trained and ensure contractors comply with the provisions in the contract safety manual, ensure the staff has requisite personal protective equipment, and continue the installation of safety signs, signage and messages.
“As management, we are committed to providing all the resources needed within the constraints of our cash flow to implement the initiatives mentioned,” he assured.
Ing. Kofi Essienyi charged the staff to cultivate the habits of medical checkups and exercise their bodies daily to keep fit.
Source: https://energynewsafrica.com Ghana: CEB Engages GRIDCo As Kamadama Project Nears Completion
A delegation from the Communauté Electrique du Bénin (CEB), the Electricity Community of Benin, has visited GRIDCo to provide an update on the Kamadama project.
The project is expected to be completed by the end of December 2023, following which the Dapaong substation will be upgraded to a 161kV facility.
The head of the delegation, Ing Dammipi Noupokou, Deputy Managing Director of CEB, indicated that “we need GRIDCo’s involvement to ensure the safe and efficient operation of the 161kV equipment.”
He further proposed a working session to analyse the implications and define an action plan to be implemented for the successful commissioning in December 2023.
Welcoming the CEB team on behalf of the Chief Executive, Ing Mark Baah, Director of the Southern Network Department, recommended setting up a technical committee to streamline activities and facilitate any required action.
The team also agreed on setting up a joint study for related activities.
CEB is focused on enhancing the security and reliability of its transmission network. As part of these efforts, it has undertaken construction work on the 161kV Kara-Mango–Dapaong–Mandouri (KAMADAMA) line and associated substations.
Other participants from GRIDCo included Ing Vincent Boachie, Director Engineering; Ing Frank Otchere, Director of System Operations; Mrs Monica Senanu, Director of Legal; Bernard Gyan, Director Technical Services; Mr Samuel Kow Acquah, Ag Director, Office of the Chief Executive; Mr. Fred Okang, Manager, System Planning; Wofa Kwarteng, Manager, Executive Office, Abigail Opoku, Electrical Engineer (trainee) Ing Clement Adjei, Manager, Network Performance and Reliability; Mr. Paapah Blay, Principal Mechanical Engineer; Mr. Anthony Ansah, Snr Electrical Engineer; and Joseph, Snr. Electrical Engineer, who represented the Bolgatanga Area Manager.
Source: https://energynewsafrica.com
Equatorial Guinea: We Are Taking Steps To Boost Oil Production–Minister Ondo
The Minister for Mines and Hydrocarbons for Equatorial Guinea, H.E. Antonio Oburu Ondo, says the Central African nation is determined to boost its oil production and is, therefore, taking several steps to realize it.
To make this dream a reality, he hinted that this year alone, the nation has awarded six new contracts to expand oil and gas production blocks in the country.
According to him, Equatorial Guinea has also signed offshore blocks, ratified with Canadian Africa oil, which would have 80 percent in each block, with Antler Global Ltd and Gepetrol sharing the rest.
“Concerning blocks EF06 and EG11, we just signed with a US major and Gepetrol already operating in the country, the terms sheet for two more PSCs was concluded for the production sharing contracts in about two weeks,” said Antonio Oburu Ondo.
Ondo, who is also the President of OPEC, explained that they have made significant strides in the development of gas mega-hub initiative too.
According to him, phase (1) of the gas mega hub project was successfully completed in February 2021, with start-up of the Alen Gas monitisation project which sends gas from the Alen field to Punta Europa LNG Terminal through a 70 -kilometer-pipeline.
He said earlier this year government signed an agreement with Marathon Oil and Chevron for the next two phases of the project.
“We expect phase two, which calls for processing gas from the Alba field, to come online by January 2024,” he added.
Phase III of the project will focus on the gas commercialization from Aseng field.
Minister Ondo said that Equatorial Guinea believes that the energy transition drive must be championed to make it cheap and affordable for its people.
Antonio Oburu Ondo, however, warned that this could only be achieved through competitive negotiation skills with the investment companies in the sector so that they can chalk affordable oil prices for the people of Equatorial Guinea in particular and Africa in general.
He further assured that if Africa renews its mind in the energy resources development sector, it could win the war over the slave business transmission models in the energy sector and regain control in her negotiation drive sector to make energy cheap, accessible, and reliable for its people.
Source: https://energynewsafrica.com
Kenya: KenGen Profits Surge By 48% In 2023
Kenya Electricity Generating Company PLC (KenGen) has recorded Ksh 5.02 billion ($33.27million) profit after tax for 2023 compared to Ksh 3.4 billion($22.53million) recorded in the previous year.
The 2023 profit represents a significant 48 percent growth over the 2022 profit.
The company also recorded a steady 14 percent growth in revenues from Ksh.47.48 billion in 2022 to Ksh.53.96 billion, largely driven by the company’s investments in geothermal energy.
“In a landscape filled with both opportunities and challenges, the KenGen team has demonstrated remarkable resilience. We are proud to announce a remarkable Ksh.5.02 billion representing a 48% growth in our profit after tax,” said the Managing Director and CEO, Eng. Peter Njenga, adding, “This achievement reflects the hard work and dedication of our team and our commitment to providing clean and reliable energy to Kenyans.”
Eng. Njenga attributed the impressive performance to the enhanced operational efficiency of the company’s geothermal fleet in Olkaria and Naivasha, further bolstered by a positive impact of the newly commissioned Olkaria I Additional Unit Six geothermal power plant which added 86MW to the grid in July 2022.
“The commissioning of Olkaria I AU 6 geothermal power plant pushed up our geothermal generation by 24 percent. This contributed to an overall increase in electricity unit sales from 7,918GWh in 2022 to 8,027GWh,” said Eng. Njenga while addressing the press.
However, KenGen reported an increase in operating costs which the CEO attributed to rising insurance and impairment costs.
This was, however, matched by growth in revenue, resulting in a pre-tax profit of Ksh.8.5 billion, which was a substantial improvement from Ksh.6.2 billion reported in the previous year.
“We are confident that our Good-to-Great Transformation Strategy is on course and will continue to deliver growth over the next decade to ensure a reliable supply of clean and affordable energy to the people of Kenya,” said Eng. Njenga, adding that the company contributed over 66 percent of Kenya’s electricity consumption in the year.
The NSE-listed company CEO said KenGen had helped to cushion Kenyans from the effects of climate change which has seen rainfall levels drop in the country over the past few years.
He said: “Notably, our investments in geothermal energy ensured uninterrupted electricity supply, even in the face of challenges posed by a prolonged drought and reduced hydropower generation.”
Looking ahead, KenGen would be banking on the growth in demand for electricity in Kenya, which continues to soar at about five percent annually.
In line with the demand and the Least Cost Power Development Plan (LCPDP), the company had announced ambitious plans to augment generation capacity by more than 154MW over the next two years through the rehabilitation and uprating of its existing power plants.
“One of the projects we are looking to deliver soon include the Gogo Hydropower Redevelopment Project in Migori County which was approved by cabinet recently and is set to elevate the dam’s electricity capacity from its current 2MW to 8.6MW,” said Eng Njenga.
KenGen boasts a diverse energy portfolio, including geothermal, hydro, wind and thermal, adding up to 1,904MW of which 86 percent is drawn from renewable sources.
Source: https://energynewsafrica.com
Ghana: We Will Pay WAPCo Regularly To Avoid Outages–ECG MD Assures
The Managing Director of the Electricity Company of Ghana (ECG), the company responsible for power distribution in southern Ghana, Samuel Dubik Mansubir Mahama, has assured Ghanaians that recent power outages in the country will not be repeated.
He gave the assurance after ECG paid US$8 million out of the total US$20 million indebtedness to the gas transportation company, West African Gas Pipeline Company (WAPCo).
“It will not happen again because we have put in the right mechanisms.
“Very soon, with the arrangement we have, we are going to pay off our exposure to WAPCo. I am hoping that by the end of this week, it will be zero. As we speak, I think, they have received more than US$8 million, so, hopefully, by the end of the week, it will be zero,” Samuel Dubik Mahama said during an interview on JoyNews’ PM Express on Monday, October 30, 2023.
WAPCo, which transports gas to western and eastern power enclaves on behalf of the Ghana National Petroleum Corporation (GNPC), suspended gas transportation to the Tema enclave because of a US$20 million debt.
This resulted in a shortfall in electricity generation by 550MW.
This led to widespread power outages, forcing citizens to accuse the government of returning the country to the era of load shedding.
WAPCo resumed gas transportation last Friday after ECG had promised to pay part of the debt on October 30.
Mr Mahama noted that once they cleared the debt, ECG would develop a sustainable plan on how it would pay WAPCo regularly.
Source: https://energynewsafrica.com
Ghana: Ghanaians Urged To Avoid Wood Fuel To Protect Their Health And Save The Environment
Ghana’s petroleum downstream regulator, National Petroleum Authority has urged Ghanaians to avoid using charcoal and firewood as fuel for cooking to protect their health and stop degrading the environment.
A Deputy Chief Executive of the National Petroleum Authority (NPA), Mr. Perry Okudzeto, who made the call, said that people should rather use LPG as it is safer, cleaner, and healthier fuel for cooking.
He said the reduction in the use of firewood and charcoal for cooking would greatly decrease the inordinate felling and burning of trees for the production of charcoal.
According to him, using LPG would reduce the number of harmful substances released into the atmosphere, curb rapid deforestation, and ultimately save the country’s forest cover.
Mr. Okudzeto was speaking at an LPG sensitization durbar in Sukura, a suburb of Accra on Monday.
Representatives of the Oil Sustainability Program (OSP) of Saudi Arabia attended the community engagement to observe the proceedings. Officials of the Ghana National Fire and Rescue Service provided education on the safe use of LPG and did simulations on how to put out the fire.
Mr. Okudzeto noted that the world was currently shifting toward the transition of energy supplies from fossil fuels to renewables due to climate change concerns.
He said gas had been accepted as the transition fuel and LPG is the most dependable transition cooking fuel, especially for homes as “it provides health, environmental, and economic benefits, especially to poor households.”
However, the NPA Deputy CE said LPG uptake in the country was low, around 37 percent, and must be actively promoted.
He said biomass such as firewood and charcoal were popularly used for cooking in most homes in the country.
Mr. Okudzeto said in line with the energy sector’s global and continental development agendas (United Nations Sustainable Goals 7, 11, and 13), the government had committed to providing modern, efficient, clean, reliable, and cost-effective energy for households, businesses, industries, and institutions.
In this regard, the cleanest and more accessible alternative to biomass is LPG.
He said it was in that vein that the NPA had initiated an LPG sensitization and awareness campaign to encourage the use of LPG for domestic, commercial, and industrial activities is laudable.
That, he said, would be anchored on the implementation of the Cylinder Recirculation Model (CRM) by the NPA to ensure that at least 50 percent of Ghanaians have access to safe, clean, and environmentally friendly LPG by 2030.
The Director of Policy Coordination, Dr. Sheila Addo, indicated that the CRM would prevent accidents associated with the current LPG distribution model and facilitate access to the product.
Besides, she said, it would provide opportunities for businesses such as the establishment of LPG exchange points and transportation of filled cylinders to customers.
The Director of Downstream at the Ministry of Energy, Mr. Ali Abeka Nuhu, affirmed the commitment of the ministry to support efforts at promoting the use of LPG in the country.
South Africa: Eskom’s Coal-Fired Plants Allegedly Linked To 92 000 Potential Deaths
The Centre for Research on Energy and Clean Air (CREA) has issued a stark warning, highlighting the potential repercussions of Eskom’s efforts to postpone the decommissioning of coal-fired power plants, citing the possibility of over 90, 000 premature deaths.
According to CREA’s analysis, the continued operation of these coal plants contributes to the release of greenhouse gases and the formation of hazardous air pollutants, posing a severe threat to public health and exacerbating the challenges associated with climate change.
Under South Africa’s current Integrated Resource Plan, initiated in 2019, the scheduled retirement of 11.3 gigawatts of coal power across seven plants by 2030 aims to address the detrimental impacts of coal-fired energy production.
However, the failure to implement stringent air pollution emissions controls on these plants has intensified the risks associated with prolonged operation.
Lauri Myllyvirta, the lead analyst at CREA, emphasised the urgent need for Eskom to prioritise the maintenance and refurbishment of its power plants, citing the detrimental effects of the company’s inadequate upkeep, which has contributed to frequent power outages and load-shedding incidents.
Myllyvirta stated, “Eskom’s failure to properly maintain these plants has not only resulted in frequent load-shedding incidents but also poses a significant threat to public health. Our recommendation is to adhere to the scheduled closure of the identified plants and allocate the saved resources to revitalise the remaining facilities. By implementing robust pollution control devices, a substantial reduction in air pollution can be achieved.”
Source: Sabcnews.com
BP Posts Profits Of $3.3bn As Oil Prices Rise Again
Energy giant BP has reported lower than expected profits despite global oil prices rising again.
The company posted profits of $3.3bn (£2.7bn) between July and September, lower than predictions of $4bn.
Its earnings were down from $8.1bn in the same period in 2022 when BP made huge profits following Russia’s invasion of Ukraine, which led to oil prices soaring.
Oil prices are currently lower than that period, but have risen recently.
BP said while oil production was strong, gas trading had been weak in recent months.
Its latest results are the first to be released after Bernard Looney resigned as the company’s chief executive in September following a review of his personal relationships with colleagues.
Mr Looney, who had led the company since 2020, stepped down with immediate effect.
While BP’s profits for the three months to the end of September were lower than predicted by analysts, earnings were up from $2.6bn in the previous quarter.
“I think the business is stable despite not having a chief executive at the moment full-time properly, but I think there’s a touch of complacency,” former BP executive Nick Butler told the BBC’s Today programme.
But interim chief executive Murray Auchincloss said the quarter had been solid and the company expected to “grow earnings through this decade, and on track to deliver strong returns for our shareholders”.
The company said the rise in profits from earlier this year was a result of higher oil refining margins and increased oil and gas production.
However, it added that money made on its oil was “partly offset by weak gas marketing and trading”.
BP said it expected refining margins across the oil and gas industry to be “significantly lower” towards the end of 2023.
The World Bank has warned oil prices could rise to more than $150 a barrel if the conflict in the Middle East escalates.
It said drawn-out war in the region could drive big rises in energy and food prices in a worst-case scenario.
On Tuesday, Brent crude, the benchmark for global oil prices, was $87 a barrel.
Separately, BP also said it had taken a $540m charge on three wind farm projects off the coast of New York.
The company, which is carrying out the projects in partnership with Norway’s Equinor, said it had failed to renegotiate agreements with authorities in an attempt to mitigate the impact of inflation and delays.
A windfall tax is a one-off levy that targets companies who benefit from something they were not responsible for, in this case a sharp rise in oil prices following Russia’s invasion of Ukraine.
The policy is currently in place until March 2028 and means the firms pay 35% on UK profits.
Oil and gas firms operating in the North Sea are already taxed differently to other firms.
They pay 30% corporation tax on their profits as well as a supplementary 10% rate. It means, with the windfall tax, firms have a total tax rate of 75%.
Source: BBC.com
South Africa: Eskom Posts $1.27 Billion Net Loss In 2023
South African state power utility Eskom has recorded a whopping net loss of about 23.9 billion rand ($1.27 billion) for the financial year that ended in March 2023 from a revised 11.9 billion rand loss the previous year.
A release posted on X formerly Twitter showed that arrears by municipalities rose to 58.5 billion rand ($3.09billion) in 2023 from the previous 44. 8 billion rand.
It said government debt relief announced was about 254 billion rand ($13.53 billion).
This year Eskom has implemented the worst power cuts on record in Africa’s most industrialised economy, with outages of up to 10 hours a day curbing economic growth and fuelling public frustration.
South Africa’s government has pledged to split Eskom into three subsidiaries to try to make it more efficient. In February it agreed to take on more than half its total debt to bolster its finances.
This year Eskom has implemented the worst power cuts on record in Africa’s most industrialised economy, with outages of up to 10 hours a day curbing economic growth and fuelling public frustration.
South Africa’s government has pledged to split Eskom into three subsidiaries to try to make it more efficient. In February it agreed to take on more than half its total debt to bolster its finances.
Nigeria: Federal Gov’t Signs $463M Power Deal With Chinese Consortium
Nigeria’s Federal Government has signed a $463 million agreement with a Chinese consortium to undertake a massive upgrading of power distribution lines in the West African nation to ensure efficient electricity delivery.
The deal would be financed by the China Exim Bank.
The deal is under the Presidential Power Initiative signed between the Ministry of Power and Civil Engineering Construction and TBEA Energy.
It is expected to enhance the availability of electricity to homes and businesses nationwide.
This was contained in a statement issued by Bolaji Tunji, Special Adviser for Strategic Communication and Media Relations to the Minister of Power.
“This agreement is aimed at upgrading the distribution lines infrastructure under Lot Three of the PPI, which encompasses the regions served by Jos, Kano, Abuja and Kaduna distribution companies.
“The signing ceremony took place during the 3rd Belt and Road Initiative event held in Beijing, China. A similar MoU was signed between the Transmission Company of Nigeria, CCECC, and TBEA to establish a super grid for the power sector,” he said.
According to him, the Minister for Power, Adebayo Adelabu, and his team were hosted by these two organisations, particularly CCECC, which had been operating in Nigeria for the past 42 years.
It stated that the presentation was conducted by the Global Chairman of CCECC, Mr Liu Wiemin, and TBEA Global President, Mr Huang Hanjie.
The Nigerian delegation to China was led by Vice President Kashim Shettima, and was accompanied by Adebayo Adelabu; Minister for Works, David Umahi; Transportation Minister, Sa’idu Alkali; Foreign Affairs Minister, Amb Yusuf Tuggar; and heads of various government agencies.
The Belt and Road initiative, established by the Chinese government a decade ago, seeks to promote infrastructure investment and cooperation across approximately 70 countries in Africa, Asia and Europe.
In 2018, former President Muhammadu Buhari signed the Belt and Road Agreement on behalf of the Nigerian government.
Power Minister Adelabu assured both companies of a long-term partnership, given the strong relationship between China and Nigeria, which was further strengthened at the BRI event.
He also outlined President Bola Tinubu’s administration’s plans to rejuvenate the power sector by addressing critical requirements and implementing impactful projects.
Source: https://energynewsafrica.com
Nigeria: Kaduna Refinery To Restart Operation By 2024
The Kaduna Refinery in the Republic of Nigeria is expected to return to operation by the end of 2024, according to Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri.
The refinery had been idle for years but currently undergoing rehabilitation to bring it back to life.
Speaking after inspecting the progress of work last Saturday, Lokpobiri said he is confident that the refinery would be restreamed by the end of 2024, considering the “significant level of progress.”
The Minister, who observed that he would continue to hold key players involved in the rehabilitation process of the nation’s refineries accountable, also pledged the Federal Government’s support in ensuring the timely delivery of the project.
According to the Minister, there is an urgent need to get the refinery back on stream for the nation’s economic prosperity and energy security, which are both paths to sustainable development.
Earlier in his remarks, the Group Chief Executive Officer of NNPC Ltd., Mele Kyari, reassured the Minister that the fuel plant at the refinery would be delivered by the end of 2024.
Kyari said that all hands are on deck to bring the refinery back on-stream, stressing that the contractor had since mobilised to the site and the needed equipment for the quick-fix activities was already in place.
“We are very confident that we will get the appropriate financing to get to the end of it, and ultimately, we will start to deliver value to Nigerians again. We plan the quick fix for 60,000 barrels per day so that we can start making money from this plant and we can continue the other part of the refinery to bring it up to its full-fledged capacity. This will also tally with the completion of the Build, Operate, and Transfer (BOT) on the pipeline to have a reliable pipeline delivery infrastructure,” he stated.
The inspection tour, which was preceded by the 14th Refineries Rehabilitation Steering Committee Meeting, also had in attendance NNPC Limited’s Executive Vice President, Downstream, Adedapo Segun; Executive Vice President, Upstream, Oritsemeyiwa Eyesan; Managing Directors of the three refineries; and a host of other members of the Committee.
Source: https://energynewsafrica.com
Chevron Reaches Agreement With LNG Workers To Avoid Further Strikes
A weeks-long dispute between Chevron and workers at its two LNG projects in Australia has finally ended with an agreement that eliminates the risk of any further industrial action.
Members of the Offshore Alliance—the group that represents the workers—voted in favor of a deal with the supermajor endorsing what Chevron offered in wages and working conditions, Reuters said in a report.
The deal comes after workers went on strike for about a week in September after failing to reach an agreement with Chevron on new terms regarding their remuneration and working conditions. The strike risked disrupting global LNG supply and pushed natural gas prices higher, especially in Europe.
Talks mediated by the Australian labor market regulator followed as Chevron remained unwilling to accept all demands made by the workers. These dragged on for weeks, with the Offshore Alliance keeping the threat of another strike over Chevron’s head throughout.
Eventually, however, the parties appear to have managed to resolve their differences.
Chevron operates two massive LNG projects in Australia: Gorgon, which has a capacity of 15.6 million tons annually, and Wheatstone, which can produce 8.9 million tons of liquefied natural gas annually.
Workers at the biggest LNG facility in the country, Woodside’s North West Shelf, also threatened a strike earlier this year but the company resolved the matter relatively quickly, eliminating the threat of disruption at the 16.9-million-ton facility.
The effect that the risk of strikes—and actual strikes—at Australian LNG plants are having on gas prices has highlighted the delicate balance between supply and demand for the fuel.
Supply remains tight at a time of heightened demand because of Europe joining the regular LNG buyers’ club. Additional production capacity is coming but not immediately, which means the tightness—and price volatility—will likely remain a feature of the global LNG market for years to come.
Source: Oilprice.com