A report by Ralph Schoellhammer, a nuclear power advocate and senior lecturer in political science at Webster University, Vienna, has suggested that European Union is not serious about the goals of Net Zero.
The report noted that without nuclear power being a major part of the energy mix going forward, EU officials are knowingly promoting an unachievable goal.
“Without nuclear energy, there will be no decarbonisation of electricity production – unless we are willing to accept big cuts in living standards. Fukushima and Chernobyl do not provide evidence for abandoning nuclear power. On the contrary, a closer look at both incidents shows that nuclear power is much safer than many available alternatives. Nuclear waste is not a problem. There is no documented case of a single person being harmed, much less killed, by nuclear waste.
“After the energy crisis of 2022, public opinion in most Western nations has switched from opposing to supporting nuclear energy,’’ said portion of the report sighted by energynewsafrica.com.
Commenting on the report, Frank Furedi, Executive Director at MCC Brussels, said: “The facts are there and without dispute – European energy policy is on the road to nowhere without nuclear. If elites continue in this fashion, European voters should question if Net Zero really is a fundamental goal, is just environmental window dressing, or, worst of all, hides other motivations for EU bureaucrats.”
The newreport released today by the think tank MCC Brussels warns that neither energy independence nor any meaningful decarbonisation be reached without a renaissance of nuclear energy – that is unless one would be willing to accept massive declines in prosperity and living standards.
Although it cannot be ruled out that the most zealous environmentalists would be willing to accept this proposition, it is unlikely to be popular with most voters in industrialised countries.
Ralph Schoellhammer, the report’s author, is a senior lecturer in political science at Webster University Vienna.
Commenting on the release of his paper, he said: “It often escapes our attention that energy is the only universal currency. Nothing can be done without it, and any society’s living standards are defined by the amount of energy an individual gets to use. Western Europeans are wealthy because we use the energy equivalent of 14 barrels of oil per capita, and Africa is poor because they only have access to 3 barrels per capita. An energy policy that reduces the available amount can only result in lower living standards.”
“Nuclear energy is one of the most efficient and reliable ways to produce energy and can thereby ensure the prosperity of millions around the globe – but only if we overcome the political obstacles to use it. It is heartening to see that several European countries led by France have finally realised this and are forming an alliance for a nuclear renaissance.”
Despite the EU’s weakness for anti-nuclear propaganda (like the supposed problem of nuclear waste), the report finds it encouraging to see that a group of European nations led by France, calling themselves the “Nuclear Alliance”, are actively promoting a renewed push for the use of nuclear energy in Europe.
While welcoming the Alliance, the report’s author warns that it will be an uphill battle unless all the issues mentioned in the report are addressed.
To name but a few:
The proponents of nuclear power must compensate for decades of misinformation by the well-organised anti-nuclear movement.
The entire regulatory framework surrounding nuclear energy needs to be overhauled to enable speedy and cost-efficient construction, thereby incentivising investments in the nuclear industry.
Universities need to encourage the training and education of future nuclear engineers and research into advanced reactor designs.
Frank Furedi, Executive Director of MCC Brussels, concluded,” As Dr Schoellhammer’s paper notes, had the potential of nuclear fission been discovered yesterday, we would celebrate it as a world-saving miracle. Unfortunately, the circumstances that gave us access to nuclear power have tarnished almost all the positive aspects and led to a history of fears and smears, comingling the justified worries about nuclear weapons with the unjustified fear of nuclear power. Hopefully, this report can shed some light on this discussion and help create the conditions necessary for a nuclear renaissance in the future.”
Ghana’s cabinet has approved a new policy for the exploitation, management and regulation of lithium and other green minerals in the country, a report by the state-owned Daily Graphic has revealed.
Lithium is used in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles.
It is also used in some non-rechargeable batteries for things like heart pacemakers, toys and clocks.
The West African nation, recently, discovered lithium in the Central Region, and according to the Minister for Lands and Natural Resources, Samuel Abu Jinapor the new policy would lead to legislative interventions by Parliament, including an amendment of the Minerals and Mining Act, 2006(Act 703), with relevant processes already begun.
The Minister noted that while Act 703 set the rate for mineral royalties at between three to five per cent, the new policy would see a different royalty regime for green minerals.
“I wrote to the Chief Executive Officer of the Minerals Commission last week and asked him to present to me a strategy document within a week for the implementation of the tenets of this policy. We want to get on with this as quickly as possible,” Mr Jinapor said as quoted by Daily Graphic.
“For some reason, I will not give the rate for the green mineral royalties yet, but suffice it to say that it is going to be higher than what we have now relating to gold. The point is that we have a different royalty regime for green minerals as opposed to gold and others,” he said.
The Minister also said the new policy would insist on a higher level of local participation in the green minerals value chain as opposed to the 10 per cent vested interest the state had currently in mining entities.
“We will insist on a certain minimum Ghanaian participation that will be more and better than the 10 per cent. I am reluctant to put specific figures out now on this. There is a Cabinet decision on a baseline, and we will not go below that in any negotiation for our lithium and other green minerals,” he said.
Mr Jinapor added that the overarching goal of the new policy was anchored on the principle that the exploitation of green minerals must benefit Ghanaians who are the true owners of the resource.
He said given that principle, building blocks for the green minerals exploitation would be different from what existed with gold in particular.
Globally, it is estimated that the lithium industry alone is valued at US$11 billion at the mining stage, with the value of the industry at the highest end estimated at US$7 trillion.
Source: https://energynewsafrica.com
Equatorial Guinean Minister for Mines and Hydrocarbons, H.E Antonio Oburu Ondo has called on Russian companies that want to do business in the oil and gas sector in Africa to be project partners instead of being service contractors.
He noted that funding for oil and gas projects is one of the major challenges in Africa and, therefore, wants Russian companies that want to do exploration in Africa to invest in seismic data acquisition and be partners of the project themselves.
Contributing to the discussion on ‘Exploration and Mining: Russian Technologies in Africa’ at the just-ended Second Russia-Africa Summit in St Petersburg Russia, H.E. Ondo noted that Russia is very good when it comes to technology but questioned whether their technology is affordable to Africa NOC and government.
To address the issue of technological affordability, H.E Antonio Ondo stressed that Russian companies need to put the right commercial structure in place to make their technology affordable to Africa while becoming profitable to them.
“We are interested in a commercial framework in which the Russian side would not be a service company, but, rather, a partner. If a Russian company invests in a project and the results are shared, this will allow a considerably larger number of countries to use the technology,” Ondo said.
“If we have this commercial term that allows the company to come and put in money and amortize the fund they invested, I think this is the best,” he told energynewafrica.com on the sidelines of Second Russia-Africa Summit in St. Petersburg.
Ondo stressed that Equatorial Guinea is very interested in expanding cooperation with Russia and Russian companies in the mining and oil and gas industries, as well as in mapping and exploration.
“I would like to sit down at a round table with you and other representatives of mining companies, and not only talk about the extraction of mineral resources but also about the extraction of oil and gas,” Ondo said.
Source: https://energynewsafrica.com
Abu Dhabi National Oil Company (ADNOC) is pursuing $50 billion worth of deals to expand on international markets and has hired a top team of deal-makers to help with the plan, the Financial Times reported on Wednesday, quoting sources familiar with the company’s structure.
ADNOC has assembled a team of around 50 specialists in deal-making in a division described as an “internal investment bank” and run by former senior Morgan Stanley executive Klaus Froehlich, according to FT’s sources.
ADNOC has already started acquisitions abroad.
Just last week, the company pumping most of the oil in the United Arab Emirates (UAE) said it would buy 30% in the Absheron gas field in the Caspian Sea in Azerbaijan by acquiring stakes from the current partners in the field, TotalEnergies and SOCAR.
After completion of the transaction, subject to the approval by the relevant authorities, TotalEnergies and SOCAR will each own 35% in Absheron, and ADNOC will have 30% in the gas and condensate field, where first gas was achieved last month. Financial details of the transaction are not being disclosed.
ADNOC’s investment in the Caspian region is part of the strategy of the UAE’s state oil and gas giant to expand on international gas markets.
“We believe this strategic partnership with SOCAR and TotalEnergies, unlocks the potential of the Caspian region for decades to come and complements a broader energy collaboration between the UAE and Azerbaijan that will accelerate the growth of the global renewable energy sector as both countries take bold steps to transition towards a lower-carbon future,” Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC, said in a statement carried by the Emirates News Agency, WAM.
ADNOC has also recently brought forward its target for net-zero emissions to 2045, from a previous target of 2050, becoming the first oil company in its peer group to commit to net zero in 2045.
Source: Oilprice.com
Nigeria’s Chief of Naval Staff, Vice Admiral Emmanuel Ogalla, has vowed to crack the whip on officers who will be found to be involved in oil theft in the West African nation.
Mr. Ogalla said this while addressing newsmen at the end of his maiden familiarisation tour of the Nigeria Navy Ship (NNS) Pathfinder in Port Harcourt last Friday.
He said the navy was fully-focused and had already taken actionable steps to end crude oil theft and other illegalities at the nation’s territorial waters.
He said, “We are aware of allegations of involvement of our officers in crude oil theft–which are quite baseless.
“Whenever we receive such information, we quickly launch an investigation. But so far, our findings have shown that most of the allegations are not true.
“However, if there is an element of truth in the allegations, we hold the alleged personnel responsible as well as apply the law according to the Arm Forces Act,” he said.
Mr. Ogalla said that severe consequences await any personnel linked to such illegality, irrespective of how highly placed the officer or rating.
“The punishment ranges from imprisonment and dismissal. We have had cases in the past and appropriate actions were taken.
“However, more than 97 per cent of these allegations are based on social media, and as such, they have no proper background.
“We are in the age of social media when anybody without proof or having full details will just put something up there (on social media platforms).
“But if you go through most of those allegations and investigate them, you find out that the basis of those allegations is unfounded,” he added.
Last Thursday, a joint task force, Operation Delta Safe, uncovered three reservoirs used for the storage of illegal refined fuel in Bayelsa.
The reservoirs, which were located along Tamara Street in Biogbolo, had about 35,000 litres of Automated Gas Oil and 38 jerry cans filled with illegally refined products loaded in a vehicle.
“The building has been taken over. We have three dug-out pits within the building with a vehicle also carrying about 38 jerry cans filled with illegally refined products.
“This is to show that the OPDS is working and not relenting at getting rid of criminals in the Niger Delta, because illegality is affecting the economy of the country.
“You can see the building is situated in a place where they could have other buildings.
“Apart from constituting health hazard for other people that are living in the community, other dangers can happen also,” Commodore John Siyanbade, who represented the OPDS Commander, Rear Adm. Olusegun Ferreira said.
He warned those involved in illegality in the region to desist or be ready to face the law.
Source: https://energynewsafrica.com
President of Organization of Petroleum Exporting Countries (OPEC) H.E. Antonio Aburu Ondo, has stated that price volatility in the oil and gas industry is a dangerous thing, hence, the cartel will do everything possible to prevent it from happening.
He argued strongly that price volatility throws governments’ budget plans out of gear which subsequently affects the well-being of their citizens.
To avoid this phenomenon, he explained that OPEC makes sure that prudent and pragmatic measures are in place to ensure stability in crude oil prices.
Speaking in an exclusive interview with energynewsafrica.com on the sidelines of the second Russia-Africa Summit in St Petersburg, Russia, H.E Antonio Ondo, who is the Minister for Mines and Hydrocarbons in the Republic of Equatorial Guinea, stated that OPEC’s primary occupation is to ensure that gas and oil consumers across the globe especially and particularly those in Africa, are insulated from unexpected shocks.
“The coming in of OPEC is not about increasing or reducing prices, right? OPEC is about creating market stability. OPEC’s actions are to ensure that the market is stable. We don’t want price volatility. Volatility is a dangerous thing because the government can’t plan their budget. If the government can’t plan their budget, then, they will lose the ability to take care of their people,” he said.
Crude oil prices have been soaring since June this year.
Saudi Arabia cut its daily production by one million barrels in July, and it plans to cut an additional one million next month.
Russia, another OPEC member, has announced that it would cut supply by 300,000 barrels per day in September.
These reductions in supply are likely to shoot crude prices up in the next couple of days.
Brent crude price is hovering $85 per barrel while WTI is selling around $82 per barrel as of Monday, August 7, 2023.
Touching on what energy transition meant to him, he observed that it should be diversified energy sources, ensuring accessibility and affordability to the ordinary energy user.
“Whatever actions we take towards energy transition, they have to take into consideration the fact that people need access to energy and typically, people need access to the type that is affordable and that is accessible to them,” H.E Oburu Ondo asserted.
“The wind energy for instance, is not available in Ghana, therefore, to pretend this type of energy has to be imposed to Ghanaians, is going to be more costly and certainly less accessible to the ordinary people. People use the type of energy they have affordably available,” he said.
Source: https://energynewsafrica.com
Ghana Grid Company (GRIDCo), the power transmission company in the Republic of Ghana, has conducted a pre-inspection of Twin City Energy’s (formerly Amandi Energy) Gas Insulated System (GIS) Substation Facility located at Aboadze in the western part of the West African nation.
The facility is a Combined Cycle Power Plant with an installed capacity of 200 megawatts.
The plant includes a gas turbine and a steam turbine, which can run on both crude oil and natural gas as its primary fuel.
The inspection was led by Ing Ebenezer Essienyi, GRIDCo’s Chief Executive, who was accompanied by Ing Mark Baah, Director of the Southern Network Department; Ing Vincent Boachie, Director of Engineering, a team from the Technical Services Department (TSD), Southern Network Department (SND) and Takoradi Operational Area.
They were received by the Amandi Energy team, led by Ing Richard Badger, General Manager and Director of the Twin City Energy IPP.
Ing Badger said, “The pre-inspection makes room for transitioning the management of the substation facility from Amandi Energy to GRIDCo.”
The Amandi Energy GIS power plant and its balance of plant were energised on May 8, 2019, while full commercial operations commenced on July 30, 2021.
Source: https://energynewsafrica.com
The Port Harcourt Refinery in the Federal Republic of Nigeria, which is currently undergoing rehabilitation, is set to return to full operation in December this year, President Bola Ahmed Tinubu has disclosed.
This was contained in a statement issued by Nigeria Labour Congress after meeting with President Tinubu last week.
“President Tinubu gave his commitment to the Labour leaders that the Port Harcourt refineries will start production by December 2023 after the completion of the ongoing rehabilitation contract between NNPCL and Italian firm, Maire Tecnimont SpA, a statement by Dele Alake, Special Adviser to the President on Special Duties, Communications & Strategy said.
The NLC staged a protest over economic hardship in the country occasioned by the removal of fuel subsidy in May this year.
The Buhari administration earmarked US$1.5 billion for the rehabilitation of the refinery which had been idle for several years.
In May 2021, the rehabilitation works started and are expected to be completed in two phases, with phase 1 taking 24 months while phase 2 will take about 36 months.
The rehabilitation project works, according to Ahmed Dikko, Managing Director of Port Harcourt Refinery Corporation (PHRC), would create over 3000 jobs.
“This job is going to create a lot of opportunities for our local communities. At the peak, we are going to have about 3,000 personnel working here.
“The project has started today and by our project schedule, it is in three phases because we have the old Port Harcourt refinery here, which is 60, 000 barrel capacity.
“Then the bigger one is 120, 000 barrels per day. We have started and the first phase is 24-months and then we have 36. Ultimately the total completion about 44-months,” Chief Operating Officer, Refineries, Yakubu Mustapha said this in May 2021 as carried by Punch Nigeria.
Source: https://energynewsafrica.com
Kenya Electricity Transmission Company Ltd. (KETRACO) has acquired two high voltage transformers to be utilized to complete the 220kV Turkwel – Ortum – Kitale Transmission project.
The 220/132kV 90MVA transformer weighing 70 tonnes will be utilized at the Kitale substation and another weighing 40 tonnes will be installed at the 220/33kV Ortum substation.
The two high voltage transformers form a critical segment of the Transmission Infrastructure Project and it will provide an alternative transmission evacuation route for Turkwel Hydro Power Plant and place the entire Western region on a pedestal to attaining stable electricity grid for purposes of economic growth.
The project, which is being executed by Shyama Power Limited of India and supervised by KETRACO, is in its final stages of completion.
In a statement issued by KETRACO, Ministry of Energy and Petroleum Cabinet Secretary (CS) Hon. Davis Chirchir said the transmission infrastructure project has the potential to catapult the region into a strategic zone for foreign investments, promoting industrialization, and fostering innovation.
Cabinet Secretary Davis Chirchir (Right) in a handshake with an official of KETRACO at the Ortum Substation.
The CS who was accompanied by Energy Permanent Secretary, Mr. Alex Wachira and KETRACO Managing Director, Dr. Eng. John Mativo made the remarks while addressing the press at KETRACO’s Ortum substation.
He had visited the substation to witness the delivery of the 23MVA transformer to the substation.
The one for Kitale is rated 90MVA.
Mr. Chirchir said that through KETRACO, the government implemented the project in two lots for efficient and timely delivery.
Lot 1A involved the construction of Ortum 220/33kV substation, Kitale 220/132kV substation and extension of Turkwel substation while Lot 1B entailed the Construction of 138Km ,220kV single circuit line from Turkwel to Ortum to Kitale.
The 220kV transmission line from Turkwel to Ortum to Kitale has a capacity of 250MW. The Government of Kenya and Exim Bank of India financed the project.
Testing and commissioning are currently ongoing at both Ortum and Kitale substations while Turkwel substation is due for protection setting configuration and commissioning. The transmission line is already completed. KETRACO will carry out inspections in readiness for commissioning once the transformers are installed and energized.
The transmission infrastructure project will Improve Power quality and reliability in West Pokot, Trans Nzoia, Uasin Gishu and, Nandi Counties and strengthen supplies to the entire Western Kenya.
The project will also facilitate efficient power supply to the proposed cement plant at Ortum and other power consumers.
It will offer alternative path to evacuate power from Turkwel to the national grid and ensure Kitale and Eldoret receive power from two different directions: Turkwel and Lessos.
“Reliable electricity infrastructure is a requisite for higher productivity, and increased competitiveness in the global markets. Industries heavily rely on electricity to operate machinery, run production lines, and power manufacturing processes,” Davis Chirchir said.
The CS said stable electricity supply was crucial for economic development, industrial production, technological advancements and will significantly influence the country’s geopolitical standing and ability to compete and thrive globally.
Source: https://energynewsafrica.com
Saudi Arabia has announced its decision to extend the voluntary cut of oil production by one million barrels per day to September.
The voluntary cut that was planned for July will now also cover September, the Ministry of Energy said, adding that further extensions were possible.
The kingdom will produce approximately nine million barrels of oil daily in September.
The ministry said this cut is in addition to the voluntary cut of 500,000 barrels per day previously announced in April, extending through 2024.
The extension of the voluntary cut aims to reinforce efforts of OPEC+ countries to stabilise the oil markets, it noted.
OPEC+ countries refer to members of the Organisation of the Petroleum Exporting Countries, OPEC, and its allies.
Ghana’s petroleum downstream regulator, National Petroleum Authority, has announced that it will, beginning September 2023, start the implementation of the first phase of the government’s nationwide Cylinder Recirculation Model (CRM) policy from the Greater Accra and Ashanti Regions.
The authority expects to extend the programme to the remaining fourteen regions of Ghana in phases.
Addressing a section of Ghanaian journalists to officially announce the implementation date, the Deputy Chief Executive Officer of NPA, Curtis Perry Okudzeto explained the authority is beginning the implementation of the programme given the completion of four LPG bottling plants which were constructed for the sake of the programme.
He mentioned that GOIL Plc has constructed two LPG Bottling Plants in Tema and Kumasi with the capacity to fill 23,000 and 7,600 cylinders per day while Blue Ocean and New Gas plants also can fill 24,000 and 20,000 cylinders respectively.
Besides the bottling plants, Mr. Okudzeto indicated that the state-owned Ghana Cylinder Manufacturing Company (GCMCL), APPEB and Sigma are also ready to produce cylinders for the programme.
Mr. Okudzeto stated that the NPA has done all the necessary regulatory work for the smooth implementation of the programme.
Under the current system, LPG consumers go to their LPG retail outlets and fill their cylinders based on how much they can afford.
However, under the Cylinder Recirculation Model (CRM) policy, what will happen is that there will be already-filled cylinders of five kilogrammes and above from the bottling plant and transported to cylinder exchange points.
Consumers will then have to go to these exchange points and exchange their empty cylinders for the already filled cylinder based on how much LPG they want to buy.
“Consumers will no longer buy LPG cylinders. All you need to do is identify an exchange point and get a form to register as a client of that exchange point.
“We advise that consumers take proper care of the cylinders,” Mr Perry Okudzeto stated.
Contrary to claims by LPG Marketing Companies that they would lose jobs and their investments in Bulk Road Vehicles (BRVs) and, therefore, demand compensation as it is done for those affected by road construction, Mr Perry Okudzeto said BRVs would still be used in transporting LPG to some consumers as well as transporting LPG to bottling plants.
He said the CRM policy would run side by side with the current system until the programme is fully implemented across the country.
Asked when the authority expects the transition period for the current system to end, Mr Okudzeto could not provide a specific but said the authority has been engaging all stakeholders to agree on the date.
“Some people think three years while others are also saying five and 10 years so we are still discussing it,” he said.
He urged the LPG Marketing Companies to embrace the programme, saying, “I believe the policy is going to put more money in their pockets.”
He said there would be new jobs, stating that NPA is going to issue new licences for the transportation of filled LPG cylinders to the exchange points.
Touching on the pricing, Mr Okudzeto said the authority would make sure that there would be no increase in the cost of LPG, adding that they are engaging the Ministry of Finance on the possibility of scrapping some of the taxes on LPG.
The target of the CRM is to achieve 50 per cent consumption of LPG by 2030.
The Head of Gas at the Gas Directorate of NPA, Mr Obed Kraine Boakye, in a presentation detailing the background to the Cylinder Recirculation Model policy, noted that Cabinet, in 2017, directed NPA to implement CRM in line with the country’s National LPG promotion policy.
He said the goal is to ensure that there is access to safe, clean and environmentally friendly fuel.
“We believe CRM is safer than the current system,” he said.
After the press encounter, the authority led journalists to visit GOIL Plc LPG Bottling plant in Tema and Sigma Cylinder Manufacturing Company in the North industrial area in Accra.
Meanwhile, the Vice Chairman of the LPG Marketers Association, Gabriel Kumi, has urged the regulator, NPA, not to rush in implementing the policy.
He said the association wants enough time for the transition to take place.
Eric Govina, Depot Manager for Tema at GOIL Plc speaking the press and NPA officials during a visit to GOIL’s LPG Bottling Plant in Tema on Thursday, 3rd August, 2023.Source: https://energynewsafrica.com
Nigeria has suspended the power supply to the Republic of Niger as a form of sanction against Niger after some military officers toppled the President-elect, Mohamed Bazoum, last week.
Nigeria supplies about 60 per cent of electricity to the western part of Niger while 40 per cent is generated locally.
Nigeria exports electricity to the Republics of Benin and Niger based on various Transaction Service Agreements.
A journalist with Agence Nigerienne De Presse (ANP), who confirmed the development to energynewsafrica.com, said that Niamey, the capital of Niger, has power from a local supply.
An attempt to get confirmation from the Transmission Company of Nigeria (TCN) failed as messages sent to Ndidi Mbah, Public Affairs Manager at TCN on WhatsApp, were unanswered.
In a report by Punch Nigeria, it said the President of Nigeria Consumer Protection Network and Coordinator of Power Sector Perspectives, Kunle Olubiyo indicated that ECOWAS would isolate the Niger Republic from the electricity supply.
“About 60 per cent of power supply to Niger comes from Nigeria. Just like organised labour usually shuts down the national power grid as part of negotiations when all appeals might have failed to achieve results, Mr. President (Tinubu) is the leader of ECOWAS at the moment.
“Disconnection of power supply is seen as a low-hanging fruit,” he stated.
Source: https://energynewsafrica.com
Oil Marketing Companies (OMCs) in the Republic of Ghana have reviewed their pump prices upward in response to the exchange rate volatility and rising crude oil prices on the international market.
As of Monday, August 1, 2023, leading oil marketing companies— GOIL Plc, Shell and TotalEnergies—adjusted their pump prices upward from Gh¢12.40 and Gh¢12.45 per litre to Gh¢12.95 for both petrol and diesel.
During the second pricing window in July, GOIL Plc. and Shell both sold petrol and diesel at Gh¢12.40 and Gh¢12.45 per litre respectively while TotalEnergies sold both petrol and diesel at Gh¢12.45 per litre.
Per the adjustment, it means a litre of petrol has gone up by 55 pesewas while diesel saw a 50 pesewas increment.
Star Oil has also reviewed its pump prices and is selling petrol at Gh¢11.99 per litre while diesel is selling at Gh¢12.25 per litre.
Petrosol Ghana Limited, one of the top ten OMCs, has also adjusted its pump prices and is selling petrol at Gh¢12.65 per litre while diesel is sold at Gh¢12.69 per litre.
It previously sold both petrol and diesel at Gh¢12.19 per litre.
Allied Oil is selling petrol at Gh¢11.95 per litre while diesel is sold at Gh¢11.99 per litre.
Previously, Allied Oil sold petrol at Gh¢11.40 per litre while diesel was sold at Gh¢11.55 per litre.
Dukes is selling both petrol and diesel at Gh¢11.89 per litre.
Engen is selling both petrol and diesel at Gh¢12.70 per litre.
Previously, it sold both petrol and diesel at Gh¢ 12.15 per litre.
Unlike in other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every two weeks.
During the second pricing window in July, the crude oil price was hovering around $80 per barrel.
However, crude prices hovered around US$85 per barrel at the close of the second window on July 31.
Data from the regulator, National Petroleum Authority (NPA), also showed prices of finished products—diesel and petrol—jumped on the international market within two weeks.
Petrol went up to $898.55 per metric tonnes while diesel went up to$786.73 per metric tonnes.
Source: https://energynewsafrica.com
A High Court in Lagos in the Federal Republic of Nigeria has restrained Nigerian Electricity Regulatory Commission (NERC), Bureau of Public Enterprises and Sahelian Power SPV Limited, from naming Powercom or any other investor as a core shareholder in Kano Electricity Distribution Company (KEDCO).
The court presided over by Justice Nicholas Oweibi, also barred the respondents from conducting or recognising any other bidding process for selling Sahelian’s 60 per cent shares in the Kano Electricity Distribution Company.
Other respondents affected by the orders are Fidelity Bank, the receiver manager, Patrick Ikwueto SAN, Kano Electricity Distribution Company Plc. and Powercom Smart Grid Nigeria Limited.
The applicant, Future Energies Africa (FEA) Limited, which is a consortium of local and international investors, told the court that the process that produced Powercom Smart Grid Nigeria (PSGN) as the preferred company to take over the Kano Electricity Distribution Plc (KEDCO) was flawed.
The applicant had also claimed that NERC and Powercom failed to comply with the guidelines and requirements of the federal government, as laid down by the Bureau of Public Enterprises (BPE) and NERC itself.
BPE is the agency in the custody of the government’s 40 per cent stake in the electricity distribution asset, leaving Fidelity Bank with the temporary ownership stake of the remaining 60 per cent.
Through a receiver manager, in collaboration with the BPE, Fidelity Bank initiated a bidding process to get a technically sound and financially competent buyer to acquire the bank’s stake in KEDCO.
A few days ago, Powercom had, via a statement, announced its acquisition of KEDCO.
Speaking to the press, Adam Ibrahim (an investor and consortium member of FEA), however, faulted the premise of Powercom’s acquisition announcement with the revelation that the company could not claim to have acquired KEDCO when Future Energies had already completed the execution of contracts and agreements through a share sale and purchase agreement to acquire the shares that both BPE and NERC are aware of.
Ibrahim stated that FEA had “no recourse than to seek legal action having filed a complaint to BPE and NERC that fell on deaf ears. FEA is further surprised that NERC, despite (a) its knowledge of a signed share sale and purchase agreement, (b) agreed on transaction terms as forwarded to it by BPE and Fidelity’s representative, and (c) a subsequent complaint by Future Energies regarding Fidelity Bank’s attempt to scuttle the completed process, still issued a ‘No Objection’ for PowerCom.”
Future Energies claimed that it had won the earlier bid after a rigorous review and screening process that lasted almost a year, alongside other bidders, and was given a ‘No Objection’ approval by the BPE after meeting the requirements for acquisition as laid down in guidelines set by BPE and NERC.
However, FEA revealed that for some undisclosed reasons, Fidelity Bank, which is the interim owner of the 60 per cent stake in the entity, decided to halt the process and approve another bidder after having already signed a valid and binding contract to sell the shares to Future Energies.
Ibrahim said, “My consortium—Future Energies Africa Limited (FEA)—was interested in the Kano Distribution Company, and we put in a bid through Fidelity (and its receiver manager) and BPE, which is the entity responsible for approving the guidelines and overseeing the bid process.
“The guidelines were communicated to us by BPE through Fidelity Bank. Shockingly, there is an attempt to destroy the investment and time we spent putting together a competent bid with no explanation.
“We went through the process, sent in an expression of interest alongside other bidders that were interested in the asset. After a long process and evaluation of us and other bidders, we emerged as the new core investor and got approval from Fidelity Bank through the receiver manager, to take over the asset. We also obtained a ‘No Objection’ from BPE.
“We negotiated the core contract that guides the sale of a company, which is the sale and purchase agreement (SPA). We negotiated the document, signed it and Fidelity Bank sent it over to BPE for the BPE to sign the shareholders’ agreement, which is the document that guides all the shareholders in an entity.
“In the process of negotiating the shareholders’ agreement, we understood that a call was placed by Fidelity Bank, telling BPE to halt the process of signing the shareholders’ agreement, even though we had signed the sale and purchase agreement to acquire the asset.
“They (Fidelity Bank) decided to secretly reopen the bid, and they hired PwC to begin a fresh bid process. They also secretly introduced other new companies in the process. We were told to just resubmit our documents, and we had no idea there was a new competitive process after we had already concluded our transaction. We assumed this submission of documents was just for internal purposes. Nonetheless, we reserved all of our rights under the binding contract.”
He added, “The second bidding process doesn’t conform with all of the government’s guidelines and requirements. The risk is that we may end up in the same situation whereby you are selling assets to entities that do not have the technical or financial capabilities to turn around the business.”
He said the CRM policy would run side by side with the current system until the programme is fully implemented across the country.
Asked when the authority expects the transition period for the current system to end, Mr Okudzeto could not provide a specific but said the authority has been engaging all stakeholders to agree on the date.
“Some people think three years while others are also saying five and 10 years so we are still discussing it,” he said.
He urged the LPG Marketing Companies to embrace the programme, saying, “I believe the policy is going to put more money in their pockets.”
He said there would be new jobs, stating that NPA is going to issue new licences for the transportation of filled LPG cylinders to the exchange points.
Touching on the pricing, Mr Okudzeto said the authority would make sure that there would be no increase in the cost of LPG, adding that they are engaging the Ministry of Finance on the possibility of scrapping some of the taxes on LPG.
The target of the CRM is to achieve 50 per cent consumption of LPG by 2030.
The Head of Gas at the Gas Directorate of NPA, Mr Obed Kraine Boakye, in a presentation detailing the background to the Cylinder Recirculation Model policy, noted that Cabinet, in 2017, directed NPA to implement CRM in line with the country’s National LPG promotion policy.
He said the goal is to ensure that there is access to safe, clean and environmentally friendly fuel.
“We believe CRM is safer than the current system,” he said.
After the press encounter, the authority led journalists to visit GOIL Plc LPG Bottling plant in Tema and Sigma Cylinder Manufacturing Company in the North industrial area in Accra.
Meanwhile, the Vice Chairman of the LPG Marketers Association, Gabriel Kumi, has urged the regulator, NPA, not to rush in implementing the policy.
He said the association wants enough time for the transition to take place.
