Chevron Reaches Agreement With LNG Workers To Avoid Further Strikes

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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

Ghana: JICA Supports Agenda For Stable Electricity

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The Japan International Cooperation Agency, JICA, has reiterated its commitment to support Ghana to provide clean energy, quality and affordable electricity supply to its citizens. The Agency hopes to achieve these through four main approaches, which are strengthening the electricity transmission and distribution network, promoting the introduction of renewable energy, promoting energy efficiency and developing human resources and strengthening human networks in the energy sector. The Chief Representative at the JICA Ghana Office, Ms. Suzuki Momoko, made this known in an address at the opening ceremony of a seven-week electrical training workshop for African countries at the ECG Training Center in Tema. Ms. Momoko mentioned some projects JICA has undertaken in West Africa, as part of their commitment to the Region’s energy sector. “We supported the reinforcement of substations in Accra and the improvement of power distribution systems in Tamale and Sunyani. In Sierra Leone, JICA has been supporting stable power supply for Freetown and its peninsula”, and “in Liberia, the Technical Cooperation Project for Diesel Generator Maintenance is currently ongoing,” she said. In his welcome address, the ECG Director for the Training School, Ing Godfred Mensah, indicated that the Training Center was set up with the objectives of offering training to build capacity for local and international trainees, and to offer up-skilling, special programmes and on-demand courses. To this end, he added that “the Center has been accredited by the National Board for Professional and Technician Examination (NAPTEX) of Ghana.” He added that “the Centre is recognised by the West African Power Pool (WAPP) and JICA as one of their Centres of Excellence used for capacity building of engineers within the West African Sub-Region.” Ing. Mensah mentioned that the Training Center and JICA have had a close partnership since 2010. The training programme was duly launched by the Deputy Managing Director in charge of Engineering and Operations for ECG, Ing. Kwadwo Ayensu Obeng who is, himself, a product of the Training School. Ing. Obeng encouraged the participants, who were drawn from Ghana, Liberia, Sierra Leone and The Gambia to take the training seriously, adding that “for choosing ECG, you stand to gain from examples and case studies similar to challenges in your home countries.” He tasked the trainees to ensure they would become good ambassadors of the ECG Training Centre.     Source: https://energynewsafrica.com

Ghana: We’ve Not Contracted Zoomlion For The Fumigation Exercise–VRA

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The Volta River Authority (VRA), managers of the Akosombo and Kpong Hydroelectric Power Dams, have dismissed media reports suggesting that it contracted waste management company, Zoomlion Limited, to fumigate communities impacted by the ongoing spillage of water from the Akosombo Dam. “We wish to state that VRA has not awarded any contract to Zoomlion for the fumigation of communities impacted by the controlled spillage,” VRA stated in a statement issued by its Corporate Affairs and External Relations Unit. The statement comes on reports that the power generation company has awarded a contract to Zoomlion Limited to fumigate communities impacted by the ongoing spillage. Last Sunday, VRA, in collaboration with Zoomlion Limited, commenced a fumigation exercise in Mepe, one of the communities mostly impacted by the ongoing controlled spillage. The exercise is expected to be repeated in other impacted communities. However, Ghanaian investigative journalist, Manasseh Azure Awuni, raised concerns over Zoomlion’s involvement in the whole exercise. He claimed VRA had contracted the waste management company and questioned the thinking that went into the selection of Zoomlion. Reacting to this, VRA stated categorically that it had not contracted Zoomlion. “VRA acknowledges the assistance being offered by institutions, companies, groups and individuals and will continue to work with all stakeholders in our relief efforts for the communities impacted by the controlled spillage from the Akosombo dam,” the statement concluded. When this portal reached out to Zoomlion on the issue it denied having any contract with VRA. “Zoomlion and VRA do not have any contract. If Manasseh Azure Awuni claims we have signed a contract with VRA he should show it to the world,” Ernest Morgan Acquah, the Public Relations and Corporate Affairs Manager said. He accused Manasseh of engaging in baseless allegation. Explaining the circumstances that led to the fumigation of the area, he said Zoomlion led by its executives and management presented a number relief items worth over GHS500, 000 to the victims of the spillage. He added Ecozoil Limited which is a subsidiary of Jospong Group of Company also donated 500 life jackets to the media and rescue team supporting the situation on the ground. He said during the presentation the company announced its intention to fumigate the affected areas once the water receded. Mr. Acquah who accused the journalist of overlooking these humanitarian efforts challenged him to substantiate his claims.                                                                 Source: https://energynewsafrica.com  

Egypt Suffers Blackouts As Natural Gas Imports Dry Up

Egypt is suffering longer daily blackouts as domestic natural gas production declines and imports from Israel dry up, local media have reported. In a Facebook post this weekend Sameh al-Khashen spokesperson for the government explained that the blackouts, which began in July this year due to a shortage of gas, will be extended because of higher consumption and “a decrease in the quantities of gas supplied from outside Egypt, from 800 million cubic feet of gas per day to zero,” as quoted by Mada Masr. Egypt imports gas from Israel, which the latter produces from its offshore field. Following the Hamas attack on southern Israel earlier this month and the reignition of bilateral hostilities, Israel ordered Chevron to shut down the Tamar field, reducing the amount of gas available for export. The gas that comes to Egypt from Israel is mostly used locally with the rest liquefied at Egypt’s LNG plant and exported. This is a big reason why the latest war in the Middle East had Europeans on edge with regard to gas, as prices surged immediately on the news about the Tamar shutdown. Israel is not a big supplier to Europe but it is a potentially important supplier with a view to supply diversification. Gas supply from Israel’s other large offshore field, Leviathan, are also not going to Egypt where they used to go. Instead, Chevron has rerouted the flow to the Arab Gas Pipeline that passes through Jordan. Also, an Israeli government source said that domestic supplies of gas were being prioritized over export volumes. Meanwhile, Egyptian media are reporting that consumption of natural gas has increased substantially, citing officials from the country’s government. One outlet, Ahram, wrote that, per the government, on Saturday Egypt’s gas demand had hit 700 million cubic feet daily—an 18% increase on a year ago.       Source: Oilprice.com

Israel-Hamas War Could Send Oil Soaring To $157 Per Barrel

Oil prices are set to average $81 a barrel in 2024 in case the Hamas-Israel war doesn’t spill over to the region—otherwise, in a ‘large supply disruption’ scenario, prices could spike to as high as $157 per barrel, the World Bank said on Monday. This quarter, oil prices are expected to average $90 per barrel – not too different from the price of oil early on Monday at just below $90, according to the World Bank’s latest Commodity Markets Outlook published today. So far, the conflict between Hamas and Israel has had limited impact on the global commodity markets, with oil prices having risen by around 6% since the Hamas attack on Israel. But prices of agricultural commodities, most metals, and other commodities have barely budged, mostly because of the global economy’s improved ability to absorb oil price shocks, the World Bank says. Yet, the bank has assessed three possible risk scenarios of oil supply disruptions based on historical experience since the 1970s. In a “small disruption” scenario where global oil supply would be reduced by up to 2 million barrels per day, oil prices would initially increase between 3% and 13% relative to the average for the current quarter—to a range of $93 to $102 a barrel. The “medium disruption” scenario—roughly equivalent to the Iraq war in 2003—would take up to 5 million bpd off global oil supply and send oil prices jumping by 21% to 35% initially—to between $109 and $121 a barrel, according to the World Bank. In a “large disruption” scenario—comparable to the Arab oil embargo in 1973—global oil supply would shrink by up to 8 million bpd and push prices surging by 56% to 75% initially—to between $140 and $157 a barrel, the bank added. “If the conflict were to escalate, the global economy would face a dual energy shock for the first time in decades—not just from the war in Ukraine but also from the Middle East,” Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics said in a statement.       Source: Oilprice.com

Ghana: GECA Blames Unavailable Meters, Others As Cause Of Illegal Meter Business

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The Ghana Electrical Contractors Association (GECA) is blaming the unavailability of energy meters, poor data and network systems, as well as materials shortages within the ECG operational regions as factors contributing to illegal meter business in the West African nation. A statement released recently by the GECA lamented that Ghana’s utility services are already saddled with a lot of technical and commercial losses, adding that the least they can do as third-party contractors is to help reduce these losses as much as possible. The group observed the lack of effective communication from the ECG management on the aforementioned is making contractors and service applicants desperate and, therefore, contributing to the rise in illegal service connections in the country. “GECA finds the actions of these individuals very worrying and wishes to state that illegal service acquisition and energy theft should not have a place in the economic development of Ghana,” stated GECA. The leadership of the group is encouraging the Electricity Company of Ghana (ECG) to use every available legal means to ensure a successful prosecution of any person involved in illegal power activity in the country. “GECA is against any form of illegal activity and hereby admonishes electrical contractors in the country to desist from any form of illegal practice that worsens Ghana’s electricity challenges and tarnishes the hard-earned reputation of the entire electricity fraternity.” Furthermore, GECA leadership at regional and district levels have been tasked to report any suspected illegal practices to the appropriate offices and ensure that due action is taken, adding that the group would not hesitate to punish any of its members found culpable of an illegal activity. GECA’s leadership seized the opportunity to encourage ECG management to take immediate steps to ensure that the challenges customers face during service applications and connections are urgently addressed. GECA expressed confidence that if these measures are taken, it would reduce the worrying practices in illegal connections and extortions within the ECG operational areas to improve the country. “We encourage the ECG to use every available legal means to ensure successful prosecutions of any persons involved in illegal power activity in Ghana,” the group said.       Source: https://energynewsafrica.com

Ghana: Vivo Energy Ghana To Launch Wellness Programme For Commercial Drivers

Vivo Energy Ghana, Shell licensee in partnership with the National Road Safety Authority and Health Nexus Network is set to launch the highly anticipated Fit2Drive Wellness Programme designed specifically for commercial drivers. The Fit2Drive Wellness Programme aims to promote and enhance the physical and mental well-being of commercial drivers, ensuring they maintain optimal health and safety standards while on the road. “Following the successful launch and roll-out of our STOP, THINK & DRIVE road safety campaign, we are excited to refocus on the health of our commercial drivers.  We believe that investing in the wellness of our drivers is essential for fostering a safer and more efficient transportation system”, says Kader Maiga, Managing Director of Vivo Energy Ghana. As a major player in the downstream petroleum sector, championing and setting standards for safety, innovation and quality, we remain resolute in our commitment to make positive impact in communities where we operate by implementing long-term sustainable development initiatives with a focus on the health of our people. The launch of the Fit2Drive Wellness Programme is scheduled for Thursday 2nd November 2023 at the Neoplan Station,  Accra. The time is 9am. According to health professionals, the health risk factors associated with driving include long hours in a single body posture, exposure to vibration, vehicle exhaust, noise, fatigue, self-medication among others. Divers who participate in the programme will go through a free occupational health assessment funded by Vivo Energy Ghana. At Vivo Energy Ghana, we understand that the well-being of commercial drivers is paramount not only for their personal health but also for the safety and success of our operations. This programme has been specially tailored to address the unique health challenges and demands of the driving profession. With a vision to become Africa’s most respected energy business Vivo Energy Ghana, the company that distributes and markets Shell-branded fuels and lubricants was established in 2013. The Shell brand has been in Ghana since1928. Vivo Energy Ghana has a fuels storage capacity of 11,000m³ and 232 service stations, with many offerings Shell Cards and convenience retail stores. Vivo Energy Ghana employs 150 people.  The company is recognised as a leader in the oil industry, championing and setting standards for safety. Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has a network of over 2,400 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and other non-fuel services. It provides fuels, lubricants, liquefied petroleum gas (LPG), and solar energy solutions to business customers across a range of sectors including marine, mining, construction, power, transport, wholesalers and manufacturing. The Company employs around 2,700 people, has access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell and Vivo Lubricants B.V., that sources, blends, packages and supplies Shell-branded lubricants. Vivo Energy plc has a primary listing on the London Stock Exchange, and is a member of the FTSE 250 index, with a secondary inward listing on the Johannesburg Stock Exchange.       Source: Vivo Energy Ghana

Ghana: VRA Senior Staff Association Supports Agbetikpo, Shai-Osudoku Flood Victims

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The Chief Executive of VRA, Mr Emmanuel Antwi-Dar,kwa, and the leadership of the national body of the VRA Senior Staff Association (SSA), have jointly assured flood victims at the Agbetikpo haven near Aveyime in the North Tongu District of the Volta Region, of VRA’s firm commitment to stand with them in these challenging times. The Chief Executive gave the assurance when he visited the Agbetikpo haven as part of his routine visits to displaced flood victims occasioned by the spillage of excess water from the Akosombo and Kpong Dams. According to the Chief Executive, VRA, as a responsible corporate authority, has a strong corporate ethos of adding value to lives and restoring hope in times of difficulties. He used the occasion to donate assorted relief items to the female victims, including their children and babies. The SSA also donated relief items worth an amount of GH¢150,000.00. These included 20 bags of gari (grated cassava), 10 boxes of cube sugar, 40 boxes of milk strips, 330 pieces of mosquito nets, 10 bales of assorted used clothing, 20 boxes of mosquito repellent, 100 packs of drinks, and four large boxes of biscuits. Meanwhile, VRA’s Emergency Preparedness team has distributed relief items comprising bags of rice, maize, gari, beans, sugar, mosquito coils, sachet water, palm oil and other items to residents of Shai-Osudoku, Morklikpo, Abortia and Volo. VRA’s medical team on the ground, in addition to carrying out health education and screening exercises in various communities, delivered medical relief items to the Shai-Osudoku District. The supplies were received on behalf of the District Health Director by the Physician Assistant in charge of the Dordor Health Centre, Staff of the facility and some opinion leaders of the community. The medical team also donated medical relief items to the Community Health Planning and Services (CHPS) compounds at Morklikpo and Abortia.   Source: https://energynewsafrica.com  

Geneva: Africa Must Leverage On Vast Resources To Address Energy Poverty–Says Dr Ben Asante

The Chief Executive Officer (CEO) of Ghana National Gas Company Limited, Dr Ben K.D. Asante, has urged African leaders to leverage on the vast available resources to address the persistent energy poverty across the continent. To achieve this, he said conscious efforts must be made to harness the optimum balance of export and local utilisation of resources on the continent. He averred that the utilisation of these resources is a necessary platform for ensuring sustainable, affordable and accessible energy. Dr Asante said this at the 14th Multi-Year Expert Meeting of the United Nations’ Conference on Trade and Development in Geneva, Switzerland. According to him, the prudent management of resources; provision of the requisite fiscal environment to ensure access to capital and building local intellectual capacity would be some of the key drivers for development across the continent. Dr Ben Asante enumerated that Africa’s gas share in the global market was six per cent in 2021, and it is expected to increase to over 11 per cent by 2050; while production is projected to increase from 260 billion cubic metres in 2021 to 585 billion cubic metres in 2050. In view of all these projections, he said some challenges exist in the development and utilisation of Africa’s energy resources. These challenges, he enumerated, are lack of access to capital for projects; lack of adequate requisite infrastructure; unattractive fiscal regime/taxation requirements; unclear institutional and regulatory frameworks; lack of requisite intellectual capacity; inadequate local/private sector participation in the energy sector; and non-cost-reflective delivered commodity price. Dr Asante also talked about the oil and gas industry in Ghana, making reference to policies guiding the industry in Ghana, averring that “the policy is to look at using some of the gas for power generation, because it is like a direction that government wants to take in terms of increasing our electricity penetration, especially in the rural areas.” Dr. Asante said that country-specific policies must be formulated to meet the needs of respective citizens. The Ghana Gas CEO further touted Ghana as the best destination when it comes to investment and, therefore, wooed participants to invest in his country. The 14th expert meeting session is a neutral platform for sharing country experiences in terms of successful strategies and policies implemented at national, regional and international levels to effectively manage commodity price volatility. More precisely, the expert meeting assesses links between commodity price volatility and key macroeconomic indicators in commodity-dependent and developing countries (CDDCs), and the links between commodity price volatility and food security in net-food-importing countries. The meeting in Geneva also discussed market and technology-based instruments that can help manage price risks. The next session, to which the Ghana Gas boss has been invited, is scheduled to be held in Belgium.     Source: https://energynewsafrica.com  

Ghana: VRA Reduces Spillage From Akosombo Dam

The Volta River Authority (VRA), managers of Akosombo and Kpong Hydroelectric Power Dams, says it has reduced the rate of spillage of water from the Akosombo dam because of the low volume in-flows into the dam. According to the Deputy CEO in charge of Engineering and Operations, Ing Edward Obeng-Kenzo, they (VRA) are spilling about 20,000 cubic feet per second from previous 183,000 per cubic seconds. “We were doing about 183,000 per cent and we started seeing reduction in in-flows into the dam. So, we began reducing the rate of spillage from 183,000 per cubic seconds to 150,000 per cubic seconds, 90,000 per cubic seconds, 50,000 per cubic seconds and now 20,000 per cubic seconds,” he told energynewsafrica.com via the telephone. The VRA commenced the controlled water spillage from the Akosombo and Kpong Dams on September 15, 2023, due to the consistent rise in the inflow pattern and water level of the Akosombo Reservoir. According to the National Disaster Management Organization (NADMO), about 31,000 residents in South Tongu, North Tongu, Central Tongu, Asuogyaman and several other areas have been impacted by the spillage. In an interview on Citi Eyewitnesses News and monitored by energynewsafrica.com, Ing Edward Obeng Kenzo noted that the current level of water in the dam is about 277.06, as of midday Friday, October 27, 2023. “There was a turnover in the past four days; there was a zero rise. From there, the rise has been dropping…that’s a negative rise. Today, over the past 24 hours, as of this morning, there was a drop in the level of about 0.08. As of this morning, it was 227.08 feet. That is the level in the reservoir.” He assured Ghanaians that they are ready to contain any surprises that may arise. “If there are any surprises, we are sure we can contain them at the level we are at now. We are still observing in case there are any surprises,” he concluded.       Source: https://energynewsafrica.com

Ghana: Power Outages To End As WAPCo Starts Gas Flow To Tema Enclave

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Power outages being experienced in Greater Accra and other parts of the Republic of Ghana are expected to reduce drastically in the coming days given the commencement of reverse flow of gas from the western part of the West African nation to the eastern power enclave in Tema. The West African Gas Pipeline Company, a gas transportation company that transports gas on behalf of Ghana National Petroleum Corporation (GNPC) to fuel power plants in Tema, suspended gas transportation services over the failure by GNPC and ECG to pay the outstanding debt of about $19 million. This resulted in power outages across the West African nation, forcing some citizens to take to social media and accusing the government of failing to manage the power sector. Last night, WAPCo commenced the reverse flow of gas from the west to the Tema power enclave, after an agreement was reached between the government and WAPCo. This portal has a hint that the Ministry of Finance would, on Monday, 30th October 2023, settle part of the outstanding debt to guarantee continuous transportation of gas from the West to the East. Ghana takes gas delivery from Nigeria to complement domestic gas from Ghana Gas and Sankofa Gye Nyame (SGN) field operated by Eni, to fuel power plants in the West and East. Checks by energynewsafrica.com within the energy sector revealed that gas delivery from Nigeria has been very low in recent times because of low pressure. Meanwhile, a statement jointly issued by GRIDCo and ECG on Saturday noted the improved gas supply has enabled power restoration to all loads across the country. Customers currently experiencing any outage should report to the ECG Call Centre on 0302-611 611 or the Customer Service Office for the fault to be rectified, since this is likely to be a local fault. GRIDCo and ECG regret the inconvenience caused by the recent load management exercise and thank the public for their patience.       Source: https://energynewsafrica.com  

Shell Will Cut 200 Jobs In Clean Energy Division

Shell will cut 200 positions within its low-carbon solutions unit in 2024, a spokesperson confirmed on Wednesday. The company will switch some of the jobs in question to other divisions within Shell’s more than 90,000 employee workforce, and an additional 130 roles will be put “under review” throughout 2024, said the spokesperson. The decision to downsize follows Shell’s failure to secure a grant from the $7 billion of federal funding to develop hydrogen energy, which was distributed earlier this month. The job cuts are a part of a broader overhaul by Shell CEO Wael Sawan, who took the helm in January, bullish on the company’s ability to decarbonize, despite the fact that its bottom line still relies on its oil and gas output. The decision to downsize also follows Shell’s failure to secure a grant from the $7 billion of federal funding to develop hydrogen energy, which was distributed earlier this month. Shell had applied for the funding with a hydrogen hub in Louisiana but was ultimately not on the list of seven hubs that received a grant this round. The company said it is still waiting for a formal explanation from the Department of Energy on why its Louisiana hub was not selected. In the meantime, according to the spokesperson, Shell is planning $10 billion to $15 billion of low-carbon energy investment over the next two years, which will include biofuels, hydrogen, carbon capture and electric vehicle charging. Last July, the company announced its investment in the creation of one of Europe’s largest hydrogen energy plants. In June, the company announced it would maintain its levels of oil production through 2030 to boost investor confidence as its renewables sagged. “We will invest in the models that work — those with the highest returns that play to our strengths,” Sawan said at the time, six months into the role. Shell, along with many major oil companies, has come under fire for its role in perpetuating climate change. It has been sued in the past for its failure to keep up with the climate goals outlined in the Paris Agreement. The company is also currently among the oil giants California is suing for allegedly deceiving the public about the realities of climate change. The question of how big oil companies such as Shell can fit into a clean energy future is existential for its business. Competitors such as Exxon Mobil and Chevron recently doubled down on their commitments to fossil fuels with two major oil acquisitions.     Source: CNBC

South Africa: Eskom Suspends Load Shedding Until Sunday

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South Africa’s power utility company, Eskom has announced a suspension of load shedding until Sunday evening. This decision comes as a respite for residents and businesses that have been grappling with power outages due to insufficient generation capacity. The decision to temporarily suspend load shedding is a result of Eskom’s progress in restoring its generating units and relieving the strain on the grid. “Due to sufficient generation capacity, including emergency reserves, expected units to be returned to service as well as anticipated lower demand into the weekend, load shedding will remain suspended until 16:00 on Sunday,” it said. Eskom also noted on Wednesday (25 October) that if South Africans want the suspensions to continue, the group said that energy users need to keep demand in check. “Eskom appeals to the members of the public to reduce demand at 17h00 to 21h00 by switching off geysers and pool pumps to ease pressure on the power system and continue suspending load-shedding,” it said. Eskom further noted that it would continue to monitor the power system and publish the week-ahead outlook on Sunday. Eskom spokesperson Daphne Mokwena said the utility will keep the public informed if there are any changes to the load shedding status. Load shedding is a preventive measure implemented by Eskom to avert a total collapse of the electricity system when demand exceeds supply. This involves scheduled power outages in certain areas for a specific duration, usually lasting a few hours. The recent suspension of load shedding follows Eskom’s announcement of a significant improvement in its generating capacity. The company has been diligently addressing maintenance issues, repairing breakdowns, and bringing additional generating units online to enhance the power supply. Despite these efforts, South Africa’s power sector continues to face challenges such as aging infrastructure, financial constraints, and mismanagement, leading to frequent.         Source: https://energynewsafrica.com

Ghana: Gas Supply Shortages…The Inside Story

Gas supply shortage to power plants in the Tema enclave in the Republic of Ghana has resulted in a 550MW drop in electricity generation. This has forced the power distribution company, the Electricity Company of Ghana (ECG) to put parts of the West African nation in darkness. Although a statement issued by the Corporate Communications Unit of GRIDCo confirmed limited gas supply to the Tema enclave, thus, leading to a 550MW drop in generation, it did not reveal where the gas supply shortage is coming from. Ghana takes gas delivery from Nigeria to complement domestic gas from Atuabo and Sankofa Gye Nyame field, operated by Eni to fuel power plants in the West and East. Checks by energynewsafrica.com within the energy sector revealed that gas delivery from Nigeria has been very low in recent times because of low pressure. With regards to domestic gas from Atuabo and Jubilee, energynewsafrica.com’s checks revealed that WAPCo has suspended gas transportation to East because GNPC, on whose behalf it transports the gas has failed to settle its outstanding debts. It is unclear how much WAPCo is owed. It would be recalled that WAPCo suspended gas transportation in July over $13 million debt owed. The company resumed gas transportation after GNPC and ECG raised about $6.5m to settle part of the debt. Meanwhile, the grid operator, GRIDCo, has apologised to Ghanaians over the power outage which has inconvenienced them. “The inconvenience caused is deeply regretted,” GRIDCo said in a statement.     Source: https://energynewsafrica.com