Nigeria Brings Major Dangote Refinery To Life With Own Oil Supply
Nigeria’s state oil firm NNPC Ltd will supply the new 650,000 barrel-per-day Dangote oil refinery with up to six cargoes of crude oil in December to be used in test runs, three industry sources with knowledge of the matter said.
The refinery, funded by Africa’s richest man, Aliko Dangote, will transform oil trading in the Atlantic Basin and remove a lucrative outlet for fuels produced in Europe and the United States that have for years powered the cars, trucks and generators on the continent.
The refinery is in the Lekki free trade zone near Lagos. Once it is fully up and running, it will turn oil powerhouse Nigeria into a net exporter of fuels, a long-sought goal for the OPEC member that is currently almost totally reliant on imports.
One of the sources, an NNPC official, who declined to be named, specified six cargoes, or 200,000 bpd, would be supplied in December as part of a one-year deal, adding that volumes in future months would be supplied “based on mutual agreement and availability”.
The other sources said about 4-5 cargoes, or at least 130,000 bpd, were planned.
A Dangote Group official, who did not wish to be named, said “some of the agreements have confidentiality clauses” without elaborating when asked about the NNPC supply deal.
The NNPC official said gasoline and diesel purchases from the refinery would be negotiated in separate contracts at a later date. NNPC has a 20% stake in the refinery.
The refinery began the commissioning process in May this year after running years behind schedule at a cost of $19 billion, above initial estimates of $12-14 billion.
Commissioning includes testing the different units that make products from gasoline to diesel and making sure they respond to the control panels. Experts say it can take months for refineries to move from test runs to producing high-quality fuels at full capacity.
Jeremy Parker, the head of business development for Africa-focused oil consultancy CITAC, said the value of the fuels the refinery produced would gradually improve as it approached full capacity.
“You’d need to keep feeding (the refinery) at a rate of around 325,000 bpd, which is about 10 cargoes a month,” Parker said. “Once they ramp up in subsequent phases to 650,000 bpd, that figure climbs of course, but initially they’d be expected to run around 325,000 bpd.”
Source: Reuters.com
Ghana: Energy Minister, VRA Top Officials Storm Parliament Over Akosombo Dam Spillage Wednesday
Ghana’s Minister for Energy and top officials of Volta River Authority (VRA), managers of the Akosombo and Kpong Hydroelectric Power Dams will, on Wednesday, November 8, 2023, appear in Ghana’s Parliament to brief the House on the Akosombo Dam spillage and respond to questions from the legislators.
The state-owned power generation company, VRA, on September 15, 2023, commenced controlled spillage of the Akosombo Dam due to high inflows into the dam.
The spillage, however, resulted in flooding of some communities downstream, displacing thousands of people with some houses submerged.
As part of its humanitarian efforts, the VRA set aside millions of Ghana cedis to provide relief items to ease the burden of the victims.
Aside from VRA, both public and private institutions and individuals have made substantial donations of relief items to victims, with some radio and television stations still soliciting support for them.
Last week, VRA announced that it had ended the spillage after its monitoring of the situation showed that inflows into the dam had reduced drastically.
Speaking on the floor of Parliament, the Minister for Energy, Dr Matthew Opoku Prempeh, assured that his outfit would provide the necessary accountability to the citizenry.
“Even though VRA is under the Ministry of Energy, we take responsibility. It is a national disaster, an emergency. It is not only affecting people in the South. I would have requested even more time, but since this house also needs to be informed about what is going on and the government’s response activities, I am not the lead government agency.
“There is an inter-ministerial advisory team, but we will take responsibility and come to inform you about what VRA has done and hasn’t done once we have completed everything… And I do pledge that if it is next week Wednesday, I will be here with VRA,” he stated.
Source: https://energynewsafrica.com
Senegal: Kosmos Says Tortue LNG Project Start-up Could Slip Into Q2 24
Kosmos Energy has revealed that the start-up of the BP-operated (BP.L) Greater Tortue Ahmeyim (GTA) gas project offshore Senegal and Mauritania could slip into the second quarter of 2024.
BP last week said that the project was 90% complete and is expected to start production in the first quarter, slightly later than originally planned after BP replaced the contractor for its sub sea pipeline system.
The Floating Production Storage and Offloading (FPSO) for the GTA project is en route to the field and is expected to arrive in the first quarter of next year, Kosmos said in its third quarter earnings results.
Kosmos said that the timing of production start-up now depends on the arrival, hook-up and commissioning of the FPSO as well as the floating liquefied natural gas (FLNG) facility.
“The delivery of first gas in the first quarter of 2024 depends on the execution of this work stream, which has the potential to slip into the second quarter of 2024.”
Source: Reuters.com
Nigeria: Group Sues President Tinubu Over ‘Missing’ US$15 Billion Oil Funds
A group calling itself Socio-Economic Rights and Accountability Project (SERAP) in the Federal Republic of Nigeria has filed a lawsuit against President Bola Ahmed Tinubu over the failure of his administration to probe allegations of missing oil funds and monies budgeted for repair of some refineries in the West African nation.
According to the group, over US$15 billion oil revenues, and N200 billion ($255.9million) budgeted to repair the refineries in Nigeria are missing and unaccounted for between 2020 and 2021.
The group filed the suit against President Tinubu at the Federal High Court in Lagos, last Friday, by three lawyers namely, Kolawole Oluwadare, Andrew Nwankwo, and Ms. Valentina Adegoke.
The group is seeking “an order of mandamus to direct and compel President Tinubu to probe the allegations that US$15bn of oil revenue, and N200bn budgeted to repair and maintain the refineries in Nigeria are missing and unaccounted for.”
It is also seeking “an order of mandamus to compel President Tinubu to direct appropriate anti-corruption agencies to probe allegations of corruption involving the Nigerian Petroleum Development Company Limited, Nigerian Upstream Petroleum Regulatory Commission (NPDC) and State-Owned Enterprises (SOE).”
Additionally, the group is also seeking “an order of mandamus to compel President Tinubu to use any recovered proceeds of corruption to enhance the well-being of Nigerians.”
The group argued that “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. Granting the reliefs sought would end the impunity of perpetrators and ensure justice for victims of corruption.
“The allegations of corruption documented by NEITI undermine economic development of the country, trap the majority of Nigerians in poverty and deprive them of opportunities.”
“The Tinubu government has a constitutional duty to ensure transparency and accountability in the spending of the country’s oil wealth.”
Making a reference to the 2021 report by Nigeria Extractive Industries Transparency Initiative (NEITI), the group said government agencies including the Nigerian Petroleum Development Company (NNPC) and the Nigerian Upstream Petroleum Regulatory Commission (NPDC) failed to remit $13.591 million and $8.251 billion to the public treasury.
“The NNPC and NPDC failed to remit over 70% of these public funds. NEITI wants both the NNPC and NPDC to be investigated, and for the missing public funds to be fully recovered.
“The report also shows that in 2021, the State-Owned Enterprises (SOE) and its subsidiaries (the NNPC Group) reportedly spent US$6.931billion on behalf of the Federal Government but without appropriation by the National Assembly. The money may be missing.
“The NNPC also reportedly obtained a loan of $3 billion in 2012 purportedly to settle subsidy payments due to petroleum product marketers but there is no disclosure of the details of the loan, subsidy and the beneficiaries of the payments.
“The report also shows that N9.73 billion was paid to the NNPC as pipeline transportation revenue earned from Joint Venture operations but the money was neither remitted to the Federation nor properly accounted for. The NPDC in 2021 also failed to remit $7.61 million realized from the sale of crude oil.
“The report documents that about N200 billion was spent on ‘refineries rehabilitation’ between 2020 and 2021 but ‘none of the refineries was operational in 2021 despite the spending.’ NEITI wants the spending to be investigated, as the money may be missing,” the group said in their suit.
The group joined Mr. Lateef Fagbemi, SAN, the Attorney General of the Federation and Minister of Justice as Respondents.
No date has been fixed for the hearing of the suit.
Ghana: Ghanaians Urged To Embrace CRM To Prevent Accidents, Improve LPG Access
The Chief Executive of the National Petroleum Authority (NPA), the regulator of Ghana’s downstream petroleum sector, Dr Mustapha Abdul-Hamid, has urged the public to embrace the cylinder recirculation model (CRM) policy to ensure safety and increase access to LPG to 50 percent by 2030.
He said the policy would ensure the existence of robust and standard health, safety and environmental practices in the production, marketing and consumption of LPG.
“What we need to know is that the CRM is here to curb our fear of gas being filled close to our homes,” he said.
Dr. Abdul-Hamid made the call on Friday at the launch of the Consumer Week Celebration in Takoradi in the Western Region of Ghana, on the theme: ‘LPG: Clean Cooking, Healthy Lifestyle’.
The Consumer Week Celebration is observed each year by the National Petroleum Authority as part of the Global Consumer Service Week celebration to educate the public on their rights and responsibilities and how to safely use petroleum products.
The NPA boss said LPG is a cleaner burning fuel that provides smoke-free indoor cooking and helps to reduce outdoor and urban air pollution.
“LPG produces 50% less carbon dioxide (CO2) than coal; 20% less CO2 than heating oil and 10-12% less CO2 than petrol. Gas (LPG) has been accepted as the most dependable transition fuel, especially in our homes. It provides health, environmental and economic benefits, especially to our households,” he said.
Unfortunately, Dr Abdul-Hamid said LPG uptake in the country was low, currently around 37 percent, and needed to be actively promoted.
That, he said, implied that a lot more of the consuming public continuously resort to the age-old charcoal or wood fuel method of cooking despite the enormous benefits of LPG as compared to wood fuel.
“We also need to commence action on addressing alternative livelihood for families that depend on the charcoal business for their livelihood to curb the onslaught on the already depleting forest cover,” he said.
Dr. Abdul-Hamid said the issue of safety had been high on the agenda of President Nana Akufo-Addo’s government, and that had culminated in the introduction and implementation of the CRM.
He noted that the LPG-related accidents in homes were due to a lack of adherence to LPG safety precautions.
He said the NPA was equally concerned about these incidents, hence, the intensification of its public education on the safe use and handling of LPG.
NPA boss urged bulk storage haulage, retailing and domestic handlers of LPG to observe the LPG safety rules to reduce or possibly eliminate the accidents.
In his speech, a Deputy Minister for Energy, Mr. Andrew Egyapa Mercer, said the timing of the promotional and sensitisation drive was significant given the current debate about climate change with its associated environmental and health effects.
He said Ghana needed to play a leading role in discouraging any activity that hurts the environment and affirmed the resolve of the Ministry of Energy to support the NPA and other allied institutions to save the environment.
The Western Regional Minister, Dr. Okyere Darko Mensah, urged the public to avoid complacency and familiarity and uphold the safety rules in dealing with LPG and all petroleum-related products.
Source: https://energynewsafrica.com
The NPA boss said LPG is a cleaner burning fuel that provides smoke-free indoor cooking and helps to reduce outdoor and urban air pollution.
“LPG produces 50% less carbon dioxide (CO2) than coal; 20% less CO2 than heating oil and 10-12% less CO2 than petrol. Gas (LPG) has been accepted as the most dependable transition fuel, especially in our homes. It provides health, environmental and economic benefits, especially to our households,” he said.
Unfortunately, Dr Abdul-Hamid said LPG uptake in the country was low, currently around 37 percent, and needed to be actively promoted.
That, he said, implied that a lot more of the consuming public continuously resort to the age-old charcoal or wood fuel method of cooking despite the enormous benefits of LPG as compared to wood fuel.
“We also need to commence action on addressing alternative livelihood for families that depend on the charcoal business for their livelihood to curb the onslaught on the already depleting forest cover,” he said.
Dr. Abdul-Hamid said the issue of safety had been high on the agenda of President Nana Akufo-Addo’s government, and that had culminated in the introduction and implementation of the CRM.
He noted that the LPG-related accidents in homes were due to a lack of adherence to LPG safety precautions.
He said the NPA was equally concerned about these incidents, hence, the intensification of its public education on the safe use and handling of LPG.
NPA boss urged bulk storage haulage, retailing and domestic handlers of LPG to observe the LPG safety rules to reduce or possibly eliminate the accidents.
In his speech, a Deputy Minister for Energy, Mr. Andrew Egyapa Mercer, said the timing of the promotional and sensitisation drive was significant given the current debate about climate change with its associated environmental and health effects.
He said Ghana needed to play a leading role in discouraging any activity that hurts the environment and affirmed the resolve of the Ministry of Energy to support the NPA and other allied institutions to save the environment.
The Western Regional Minister, Dr. Okyere Darko Mensah, urged the public to avoid complacency and familiarity and uphold the safety rules in dealing with LPG and all petroleum-related products.
Source: https://energynewsafrica.com Nigeria: Power Minister Adebayo Adelabu Involved In Plane Crash
Nigeria’s Minister for Power, Adebayo Adelabu, has been involved in a plane crash, according to a local report.
It is not clear where the Minister was travelling to, but the report said the Minister was onboard a private plane that crash-landed in Ibadan, the Oyo State capital, on Friday evening.
The report said the Minister, three cabin crew and seven passengers onboard were rescued from the damaged aircraft.
There was no loss of life.
“At about 0825hrs of 03/11/2023, an aircraft with registration number 5N-AMM that conveyed the incumbent Minister for Power, Abdul Waheed Adebayo Adelabu, and his entourage crash-landed along runway 22 and skidded off the runway into a nearby bush.
“The control tower reported on the radio that he lost communication with the just-landed aircraft and immediately called on the ARFFS, the AVSE, and other needed airport officials reported almost immediately to the scene.
“The three-cabin crew and the seven passengers were all rescued from the damaged aircraft. All efforts to get details from the pilot proved abortive. Also at the scene were the NAF airport commandant and his team,” Sahara reporters quoted in a report.
“As of the time of filling this report, the aircraft is still in the bush at runway 22 while the security personnel of both AVSEC, ARFFS, Airport Safety team and NAF team were on standby for cover,” the report said.
“The runway lighting system was on as of the time of the arrival. There was no life lost. We could not ascertain the cause of the incident at the point of filing this report. The aircraft skidded off the runway. In conclusion, we are awaiting further investigation,” an official said as quoted.
Source: https://energynewsafrica.com
Nigeria: Future Energies Africa Acquires KEDCo As New Core Investor
Future Energies Africa Limited has acquired Nigerian-based Kano Electricity Distribution Company (KEDCO) as the new core investor and hopes to turn around the fortunes of the struggling disco in the West African nation.
The company has reappointed Ahmed Dangana as Managing Director and inaugurated a new board chaired by Engr Adamu Ibrahim Gumel.
This is contained in a statement issued by Sani Bala Sani, Head of Corporate Communications, on Tuesday, November 2, 2023.
Last month, staff of the company locked KEDCO’s head office and all regional offices in protest of management’s failure to address their welfare issues.
The Chairman of the Board hinted at plans to address challenges faced by KEDCo by creating a modernised electricity distribution system that would enhance service delivery, create a friendly customer atmosphere and reduce AT&C for improved operational efficiency.
Mr. Gumel also assured staff on the security of their jobs and pledged commitment to staff welfare and working conditions, while urging all on to continue commitment and hard work towards achieving the renewed vision.
Source: https://energynewsafrica.com
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