The Kenyan government has begun a public enquiry into rampant hikes in fuel prices which are causing public uproar against the government.
The government has constituted a parliamentary committee of inquiry to receive petitions and complaints from the general public to ascertain the causes of increases in petroleum products and address the issues.
The committee began its work on Tuesday, September 28, 2021.
The committee’s terms of reference, among other things, are to establish the cause of the drastic increase in the price of petroleum and petroleum products and ascertain whether there are other causes of price increase apart from taxes and levies; to inquire into the amount of revenue raised from each of the taxes and levies paid on petroleum and petroleum products per month; to seek alternative ways of raising revenue instead of the imposition of taxes on petroleum products and to propose legislation to address the concerns by the petitioners.
Kenyans are paying Sh134.72 ($1.225) for a litre of petrol and Sh115.60 ($1.051) for a litre of diesel while kerosene is now sold at Sh110.82 ($1.008) per litre.
This followed an announcement by the country’s Energy and Petroleum Regulatory Authority on Tuesday, September 14, 2021.
The Authority said that prices are inclusive of the eight per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
The Ibadan Electricity Electricity Distribution Company (IBEDC), one of the electricity distribution companies in the Federal Republic of Nigeria, has restated its commitment to the completion of the construction work on the Abeokuta-Sagamu-Mowe 33KV dual-circuit line.
According to IBEDC, the completion of the project will enable communities at Mowe, Magboro, Ibafo and their environs to benefit from the newly commissioned Abeokuta Transmission Station at Kobane.
A statement signed by the company’s Chief Technical Officer, Engr. Akin Abiodun revealed that the ongoing construction of the double circuit 33kV overhead lines from the new transmission station, through the Sagamu Interchange to Mowe, was divided into five segments, and awarded to different contractors to hasten completion.
He said currently, four segments of the project have been completed, which represent 80 per cent completion.
He further said the completed sections of the lines have been soaked, while the remaining 20 per cent of the segment is on-site working assiduously to ensure the completion of the project soon.
Engr. Abiodun, however, explained that there is a bottleneck created by the ongoing construction of the third over-head bridge at kilometre 55, a few kilometres to the Sagamu interchange. This has prevented the linkage of the existing 33KV line with the new lines that are proposed to serve as an alternative to the line coming from the Oke-Aro TCN sub-station.
Engr. Abiodun, on behalf of the Management of IBEDC, appealed to the customers at Mowe, Ibafo, Magboro and their environs to remain patient and be rest assured of improved supply in the shortest possible time.
“IBEDC is not insensitive to the present irregular supply being experienced in Mowe, Ibafo, Magboro and their environs. We sincerely apologise for all inconveniences this present situation might have caused our esteemed customers.
“We are also appealing to our unmetered customers in this locality to rest assured of getting metered through the National Mass Metering Programme (NMMP) and any other scheme that may be approved by the regulator,” Engr. Abiodun said.
Tullow Oil Plc, senior leadership team (SLT) led by the Chief Executive Officer, Rahul Dhir has paid a working visit to Ghana, West Africa.
The visiting Executives who arrived on Monday will hold a series of engagements with key Government of Ghana stakeholders, including the Office of the Vice President, Ministry of Energy, the Bank of Ghana, the Ghana Stock Exchange and some selected institutions.
The one week working visit will give the Senior Leadership Team the opportunity to share Tullow’s renewed Corporate Strategy, Net Zero plans and provide an update on the Group’s progress towards investing over US$4 billion in Ghana over the next 10 years through a multi-year drilling programme which started earlier this year.
Managing Director for Tullow Ghana, Wissam Al Monthiry said “This is an important visit that will allow the whole Senior Leadership Team to discuss Tullow’s plans and progress with our key stakeholders across Ghana. This is the first time the SLT have made a trip like this since the start of the Covid-19 pandemic and I am excited to see the whole team back in Ghana.”
The visiting delegation consists of Tullow Chief Executive Officer Rahul Dhir, Chief Finance Officer Les Wood, Managing Director for Ghana, Wissam Al Monthiry, General Counsel Mike Walsh and Director, People and Sustainability Julia Ross.
Demand for oil will grow sharply in the next few years as the global economy recovers from the pandemic, OPEC said on Tuesday, adding that the world needs to keep investing in oil production to avert a crunch even as the energy transition is under way.
The view from the Organization of the Petroleum Exporting Countries contrasts with others such as an International Energy Agency report, which in May said investors should not fund new oil projects if the world wants to reach net zero emissions.
Oil use will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, OPEC said its 2021 World Oil Outlook, adding to robust growth already predicted for 2021 and 2022 , and pushing demand back above the pre-pandemic 2019 rate.
“Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020,” OPEC Secretary General Mohammad Barkindo wrote in the foreword to the report. “Continued expansion is forecast for the longer term.”
With oil demand recovering, OPEC and its allies such as Russia – a grouping known as OPEC+ – are unwinding record oil supply cuts made last year. But there are signs some OPEC+ producers are unable to pump more due in part to a lack of investment, and that has boosted prices.
OPEC also lowered its estimates for longer-term oil demand in the report, citing changes to consumer behaviour brought by the pandemic and competition from electric cars. Global demand is expected to plateau after 2035, it said.
Last year’s report said world oil demand would exceed 2019’s rate in 2022, not 2023. Now, world oil demand is expected to reach 106.6 million bpd in 2030, down 600,000 bpd from last year’s figure.
Assuming a faster take-up of existing technology, the Accelerated Policy and Technology Scenario, demand could be falling by the 2030s, according to an OPEC chart showing a more pronounced demand drop-off than a similar chart last year.
“Tele/homeworking is becoming a norm for many companies as a result of the pandemic,” OPEC said.
“Long-term oil demand growth will be limited by growing penetration of electric vehicles.”
Underinvestment
Last year OPEC+ agreed record output cuts of 9.7 million bpd, the equivalent of 10% of global supply.
With demand recovering, those barrels are being returned to the market but OPEC said it was essential to step up investment in supplies to avert a future crunch.
Last year upstream oil capital spending dropped by nearly 30% to about $240 billion due to the pandemic.
“It is clear that underinvestment remains one of the great challenges for the oil industry,” Barkindo wrote.
“Without the necessary investments, there is the potential for further volatility and a future energy shortfall.”
OPEC sees the demand for its oil rising in the next few years, but rising supply from the United States and other outside producers means OPEC output in 2026 will likely be 34.1 million bpd, below 2019’s level, it said.
The group shifted last year to acknowledging demand would peak one day, after predicting growth for years. This year’s 2045 demand forecast was trimmed to 108.2 million bpd in 2045, down 900,000 bpd from last year.
Still, OPEC is upbeat about its future prospects, seeing its market share rising in later decades as competition from non-OPEC producers will wane. OPEC expects U.S. tight oil output, another term for shale, to peak around 2030.
“Oil is still expected to retain its number one position in the energy mix,” Barkindo wrote.
Source: Reuters
Ghana’s poor handling of the impasse between the Italian oil and gas giant, ENI, and local upstream player, Springfield E&P, is likely to deter oil and gas investors from investing in oil exploration in the West African nation, Dr Babajide Agunbiade, Director for Houston-based National Oilwell Varco, the largest oilfield equipment manufacturing company globally, has stated.
According to him, the Government of Ghana has built a reputation of strongarming against multinationals regardless of what has been agreed in the PSA.
Eni, recently, sued the Government of Ghana at the International Tribunal in London over the directive, asking them and Springfield E &P to unitise the Sankofa offshore field operated by Eni and Afina block operated by Springfield E&P.
According to the directive, Ghana’s Ministry of Energy’s seismic data had indicated Eni’s Sankofa offshore field, which entered production in 2017, and Springfield’s Afina Discovery had identical reservoir and fluid properties.
Eni, however, disagreed with the Government of Ghana’s position, resulting in the legal action against Ghana.
In a statement filed by three renowned lawyers namely Craig Tevendale, Andrew Cannon and Charlie Morgan from Herbert Smith Freehills LLP, Eni is seeking five reliefs from the Tribunal.
Eni wants the Tribunal to declare that the purported 9th April Directive, 14th October Directive, 6th November Directive and any other steps taken to implement those directives represent a breach of contract under the Petroleum Agreement.
It also wants the Tribunal to declare that the respondents take no further action to implement the purported unitisation of the Sankofa Field and Afina Discovery on the terms of the purported 14th October Directive, the Draft UUOA sought to be imposed by purported November Directive or otherwise.
Again, it wants an order that the respondent pays damages in an amount to be quantified for the losses suffered by the claimant arising out of the respondent’s breaches of the petroleum agreement, Ghanaian law and International law on a joint and several basis.
Additionally, the claimant is seeking an order that the respondent pays all of the costs and expenses of the arbitration including the fees and expenses of the claimant counsel and any witnesses and/or experts in the Arbitration, the fees and expenses of the Tribunal and the fees of the SCC on a joint and several basis and /or an order such further or other relief as the Tribunal may in its discretion consider appropriate.
Commenting on the issue, Dr Agunbiade, noted that a review of the Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Exploration and Production) (General) Regulations, 2018 (L.I 2359), the laws that regulate unitisation in Ghana, shows that dynamic or hydrocarbon communication is not a requirement for unitisation.
Dr Agunbiade expressed the belief that the current impasse could delay anticipated further appraisal of other ENI discoveries in Ghana including Akoma, etc.
“This brawl can greatly affect the relationship between GNPC and ENI. Both are currently partners on the Sankofa field so GNPC needs to juggle between their position as a national oil company and a partner for the Sankofa field. This is very critical for continuity of the OCTP project and also other joint projects the parties wish to jointly venture on,” he added.
According to him, “There has also been some rumours that the deteriorating state-owned Tema Oil Refinery (TOR), which was built by ENI in the 60s, could be revamped by ENI as part of their corporate social responsibility.
“This melee can affect such an initiative and deter the Italians for moving forward with the investment,” he pointed out.
“It will be a win-win for both presidents to help resolve this issue amicably so that other trade relationships between the countries involved are not affected,” he observed.
The Government of Ghana has planned to fix Liquefied Petroleum Gas (LPG) cooking systems in over 1,000 public institutions especially in high schools, colleges, prisons and clinics.
The Deputy Minister for Energy, Andrew Kofi Egyapa Mercer, who disclosed this, said the government will also facilitate the provision of LPG access to about 20,000 commercial caterers, including service providers under the Ghana School Feeding Programme.
Speaking at a virtual dialogue on Clean Cooking on the sidelines of the United Nations General Assembly on behalf of the Energy Minister, Dr Matthew Opoku Prempeh, Mr Mercer said these efforts are under the aegis of the LPG for Development programme.
“Implementing the LPG4D will lead to 10-14 million more people using LPG; about 12,000 to 19,000 lives saved; avert cumulative deforestation of 127 million to 221 million trees, reduce carbon dioxide equivalent emissions by 9.2 million metric tonnes and reduce Black Carbon equivalent emissions by 16.63 million metric tonnes together with the economic value of $47.74 million,” he said
He continued: “The overall economic benefit of the LPG for Development programme would be immense and the government would have achieved its goal of 50% access to LPG by the year 2030, and by so doing take a giant step in the transition to clean energy in Ghana.”
The Deputy Minister indicated Ghana’s acceptance of the call to action on clean cooking for all and said clean cooking will be a priority in the country’s national planning.
“We seek the support of member states in achieving these ambitious declarations,” he added.
The Sudanese government has reached an agreement with protesters to lift blockades off Red Sea ports, including an export hub for South Sudan oil.
Reuters reports that local tribes have been protesting against bad economic conditions in eastern Sudan and have blocked roads and ports, including one that ships crude oil from South Sudan to international markets.
The agreement between the government and the protesters staved off an imminent disaster: the petroleum ministry warned that the storage capacity of Sudan’s oil export terminal would fill up within ten days. If that had happened, South Sudan oilfields would have had to stop producing.
Landlocked South Sudan is home to most of the oil reserves of the old united Sudan, and while most of these reserves have yet to be tapped, the country is producing well above 100,000 bpd, hitting a high of 185,000 bpd earlier this year, right before its first-ever licensing round.
Currently, South Sudan has five producing blocks, operated by China National Petroleum Corporation (CNPC), India’s Oil and Natural Gas Corporation, and Malaysia’s Petronas.
“The oil licensing round aims to attract interest from a diverse group of foreign investors to a region that is already home to oil and gas majors from China and Malaysia,” said the country’s Ministry of Petroleum at the time.
South Sudan broke from Sudan in 2011, taking with it around 350,000 bpd in oil production. But then civil war broke out in South Sudan in 2013, which further complicated oil production.
In 2018, the warring factions in South Sudan signed the so-called Khartoum Declaration of Agreement, in which the parties to the South Sudan conflict declared a permanent ceasefire, and the governments of Sudan and South Sudan explored ways to rehabilitate the oil sector in South Sudan.
According to the South Sudan Petroleum Ministry, as much as 90 percent of the country’s oil wealth remains unexplored.
Source :Oilprice.com
Nigerian newly appointed Minister for Power, Abubakar Aliyu, has been urged to chart a new roadmap to address generation, distribution and transmission challenges in the West African nation’s power sector.
Engr. Moshood Kola Balogun, who is the Chairman of Momas Electricity Meter Manufacturing Company (MEMMCOL), advised during an interactive session with the media as carried by The Guardian newspaper.
He said there was the need for a roadmap that would clearly define the goals of the power sector, after seven years of privatisation without achieving the desired results.
He advised the Minister to consult with the stakeholders and come up with a comprehensive roadmap that would transform the sector.
“We need to separate it in such a way that any state or local government can go into power generation and distribution to people within its area. If the power being generated is not enough, they can even buy from the national grid.
“So, power generation and distribution should be removed from the Exclusive List and moved to the Concurrent List. That is why we are advocating for franchising so that Nigerians will enjoy more supply.”
Mr Balogun identified the decentralisation of the national grid as one of the ways to reposition the power sector.
He posed: “Why do we continue to have a single grid that binds all of us together?
“The entire process should be done in a way that investors can get back their funds while their customers get fair bills in line with global best practices,” he explained.
Mr Balogun noted that more investments were needed in the sector to upgrade feeders, transformers and substations across the country.
He also called for effective regulation of the sector, stressing that the Nigerian Electricity Regulatory Commission (NERC) needs to be strengthened to carry out its statutory responsibilities.
The newly appointed Chief Executive Officer of the Bui Power Authority (BPA), the second-largest state power generation company in the Republic of Ghana, Samuel Kofi Dzamesi has expressed the belief that the clean energy projects being executed by the Authority will help to curtail the effects of greenhouse gas and climate change on the country.
“We are of the strong view that our generation from clean sources will go a long way to fight Climate Change.
“We all know that the use of fossil fuels generates greenhouse gas emissions that act like a blanket wrapped around the earth, trapping the sun’s heat and rising temperatures,” he said.
According to the World Health Organization’s Urban Health Initiative, “Emissions from transport represent a major problem for cities around the world, particularly in developing countries that are witnessing rapid urbanisation.”
The report also identifies the increased use of vehicles as the fastest-growing contributor to climate emissions and energy use with a global transport sector accounting for 14 per cent of the greenhouse gas budget.
Ghana aims to reduce greenhouse gas emissions by 15 per cent by 2030.
Consequently, the country is taking actions such as improvement in the energy efficiency of industrial facilities, replacement of light crude oil with natural gas in electricity generation plants and the reforestation and afforestation of 10,000 hectares of degraded lands annually.
Speaking at the maiden ‘E-Mobility Conference And Exhibition’ in Accra, on Thursday, September 23, 2021, Mr Kofi Dzamesi, in a speech read for him, said BPA is currently constructing a 250 Megawatt peak solar plant in the Bui Power enclave to hybridize the 404 Megawatt hydropower plant.
For the first phase of the project, a 50 Megawatt peak solar park (the largest so far in Ghana) had been completed earlier this year and connected to the national grid.
Additionally, one Megawatt Floating solar park, the first of its kind in the West African sub-region, had also been installed on the Bui reservoir and yet to be expanded to five Megawatts peak.
Also, the first-ever mini-hydro power plant has been constructed on the Tsatsadu Waterfall at Alavanyo-Abehenease in the Volta Region.
Mr Dzamesi said the deployment of these renewable energies to meet the growing energy demand for future generations is an excellent approach to help mitigate climate change.
“Our flagship initiative is the hybridization of the employing of a hydro-solar electricity generation at the Bui Generating Station which will ensure a 24-hour generation cycle. The generated electricity is evacuated into the National Interconnected Transmission System ensuring that all Ghanaians are benefitting nationwide,” he explained.
“Even though some modest effort to deploy renewable energy technologies have been made, we believe the bulk of the ideas to increase the share of renewable energy in the country are hidden in our youth,” he said.
The 1MW Floating Solar on Bui Reservoir
In line with that, Bui Power Authority, a firm believer in the future leaders, partnered with the Energy Commission in this year’s Senior High School (SHS) Renewable Energy Challenge which aimed at helping uncover the renewable energy talent hidden in some of the senior high students.
A significant stride has also been made by contributing to another clean source of power generation, which is Ghana’s nuclear power programme, by assisting to form and house the Nuclear Power Ghana (NPG), which is a project organisation set up to manage Ghana’s first Nuclear Power Project, Mr Dzamesi disclosed.
He indicated that all these strides have been made by the Bui Power Authority by the President’s vision to ensure that the implementation of the ‘Drive Electric Initiative’ is smooth.
He explained that the Bui Power Authority is not only generating for domestic use but also available to generate electricity directly to organisations that may find themselves in the e-energy space to charge their electric vehicles.
Mr Dzamesi, therefore, invited the private sector to commit to energy, adding that the Bui Power Authority is ready for such partnerships in the next phase of the Climate Change fight.
He expressed confidence that the Energy Commission’s collaboration with the Ministry of Energy in promoting electric vehicles and also drive the productive utilisation of excess electricity in the grid system is a step in the right direction.
A Ghanaian journalist, Larry-Allans Dogbey, has filed a suit at the Industrial and Labour Division of a High Court in Accra, capital of Ghana, to challenge the appointment of the Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Dr Kofi Koduah Sarpong.
In the suit which names the GNPC, the Attorney General and Dr Sarpong as the first, second and third defendants respectively, Mr Dogbey argues that the laws of the country had been breached in the latter’s appointment as GNPC CEO.
He avers that Dr Sarpong had attained the compulsory retirement age of 60 at the time of his appointment. He is 63 now.
The plaintiff further argues that Dr Sarpong’s appointment as caretaker CEO of GNPC by President Akufo-Addo on January 19, 2017, was in contravention of Article 80 of the Constitution of Ghana and Section 10 (6) of the GNPC Act 1983 (PNDCL 64) because it was done by the President through the then Minister Designate for Energy, Mr Boakye Agyarko, who had not yet taken office as Minister.
According to Mr Dogbey’s suit, the appointment of 3rd Defendant as CEO was right from the outset a nullity and the Attorney General shirked his duty, hence the appointment of Dr Sarpong as the Chief Executive Officer of GNPC at a time “that he was 63 years old and now 67 years old.”
Plaintiff will aver that by all intends and purposes, the appointment of 3rd defendant as C.E.O. of 1st defendant’s Corporation at age 63 and his continuous stay in office at age 67 offends (P.N.D.C.L 64), especially section 27 of the aforementioned Act, Article 199(1) of 1992 constitution and the Labour Law (Act 651),” the writ of summons stated.
It is Mr Dogbey’s case that Dr Sarpong would continue to stay in office if the court did not compel the appointing authorities to terminate his appointment.
He is, therefore, seeking an order declaring the appointment of Dr Sarpong as the Chief Executive Officer on January 24, 2017, and his continuous stay in office as illegal and of no effect.
He also wants an order nullifying the appointment of Dr Sarpong as the Chief Executive Officer of GNPC.
Additionally, he wants perpetual injunctions restraining the GNPC and the Attorney General from renewing Dr Sarpong’s contract of employment for another five-year term and an injunction restraining Dr Sarpong from holding himself as the CEO of GNPC.
Source: https:// energynewsafrica.com
New IMF research estimates global fossil fuel subsidies at about $6 trillion, with about 70% from “under-charging” for the environmental costs associated with the fuels, International Monetary Fund Managing Director Kristalina Georgieva told a UN energy summit on Friday.
The IMF previously had estimated such costs at about $5.2 trillion in 2017.
“The good news is that global carbon emissions would fall by one-third — in line with keeping global warming to 1.5 degrees Celsius — if fossil fuel prices increase to fully reflect environmental and supply costs by 2025,” Georgieva said in prepared remarks to an energy summit on the sidelines of the United Nations General Assembly.
Source:Reuters
A closed-circuit television (CCTV) camera at the head office of Bulk Oil Storage and Transportation (BOST), Accra, has captured a suspected thief stealing several laptops.
BOST is a strategic fuel stock-keeping company in the Republic of Ghana.
The man, spotted in a blue shirt over a black pair of trousers and a pair of black shoes, was seen with a bag loaded with some of the laptops he had stolen.
BOST announced the incident on its official Facebook page.
According to the Facebook post, the case had been reported to the police and was under investigation.
“We are hereby calling on the general public to help identify and arrest this dangerous character for prosecution and retrieval of the stolen assets.
“He poses a danger to the larger society when left to roam freely out there,” the company said.
Ghana has held the maiden Electric Mobility Conference and Exhibition to discuss the prospects and challenges with electric vehicles as it prepares to roll out nationwide policy to introduce electric vehicles into the transportation sector.
This is in line with the global push for the reduction in emissions from transportation-related activities under the Climate Change Agenda.
To spearhead Ghana’s emission reduction drive, the country’s technical regulator, Energy Commission, in 2019, launched the Drive Electric Initiative (DEI-Gh) to create productive demand to utilise electricity productively, usher in an era of green and sustainable technology for the future, reduce pollution and contribute to efforts towards climate action while helping to resolve the electricity generation overcapacity in the short to medium term.
Since 2019, the desire by some Ghanaians to own electric vehicles has been growing as they are considered more economical than internal combustion engine (ICE) vehicles.
As a result, the Energy Commission and Ministry of Energy, in partnership with the Ministry of Transport, on Thursday, September 23, 2021, held the maiden E-mobility Conference under the theme: ‘E-Mobility in Ghana Opportunities and Challenges’.
The conference brought together electricity experts, policymakers, tax officers and players in the automobile industry.
Delivering the keynote address at the conference, the Minister for Energy, Dr Matthew Opoku Prempeh noted that statistics by the International Energy Agency shows that there are about 10 million electric vehicles worldwide.
He said it was for that reason that in 2019, his Ministry collaborated with the Energy Commission to launch the Drive Electric Initiative to create productive demand for Ghana’s excess electricity, as well as a reduction in vehicular pollution and carbon dioxide emissions.
“Electric vehicles are the future and the future is here with us,’’ the Minister said.
Dr Opoku Prempeh added that his Ministry was working closely with the Ministry of Finance to secure an import waiver for 100 per cent electric vehicles to help drive the penetration of electric vehicles, while putting together other measures to drive further growth and the sustainable utilisation of electricity.
He was hopeful that the maiden conference would provide the platform to shape the E-mobility agenda to open new markets for green investments in Ghana.
The Board Chairman of Energy Commission, Prof Ebenezer Oduro Owusu, said the Commission was in the process of developing standards and regulations for electric vehicle charging infrastructure to ensure safety and a level playing field for the EV market.
A Deputy Minister for Transport, Fredrick Obeng Adom, said through collaborative efforts, the Ministry had also commenced a process to develop an E-mobility Policy for Ghana, incorporating implementation frameworks for the deployment and scale-up of Electric Vehicles.
“This would be the first of its kind and would propel green development initiatives. It will also serve as important leverage that would set the tone for the gradual decarbonisation of our transportation system,’’ he said.
U.S. oil refiners hunting to replace crude lost after a storm hit the U.S. Gulf of Mexico last month have been turning to Iraqi and Canadian oil, while Asian buyers have been pursuing Middle Eastern and Russian grades, analysts and traders said.
Royal Dutch Shell (RDSa.L), the largest producer in the U.S. Gulf of Mexico, this week said damage from Hurricane Ida to an offshore transfer facility will limit Mars sour crude supplies into early next year.
The grade is used heavily by U.S. Gulf refiners and companies in South Korea and China, the top two export destinations for Mars.
The United States generally exports more than 3 million barrels per day (bpd) of oil, most from the U.S. Gulf Coast. With overall fuel demand rebounding to pre-pandemic levels, refiners will need to make up for the Mars shut-ins.
The loss of up to 250,000 bpd has some U.S. refiners seeking replacements for fourth-quarter delivery, especially Iraq’s Basra crude, traders said. Others received supplies of sour crude from U.S. storehouses.
Basra crude has come to the fore during past disruptions. In 2019, when U.S. sanctions on Venezuela cut off heavy crude grades to Gulf refiners, Iraq rapidly boosted cargoes. Canadian heavy-oil suppliers also benefited.
Exxon Mobil (XOM.N) and Placid Refining Co have received oil from the U.S. Strategic Petroleum Reserve (SPR), addressing immediate needs for sour crude.
“Refiners that needed to specifically replace Mars barrels requested sour crude from the SPR. Many others are buying extra cargoes of Basra for October delivery, whose prices were very convenient as sour crudes in general are under pressure,” a U.S. Gulf crude trader said.
Earlier this month, Mars crude traded as high as a $1.50 premium over U.S. benchmark West Texas Intermediate (WTI) but on Wednesday it was offered at a $2.25-per-barrel discount , returning to pre-storm levels. Most of the nine U.S. refineries that halted output during Ida have returned to production.
Refiner Marathon Petroleum (MPC.N)has bought Basra for October loading, one trader said. Suezmax tanker Jag Leena is provisionally booked to load 1 million barrels of Basra Light crude on Oct. 10 for the United States, data on Refinitiv Eikon showed, although it was not immediately clear which company chartered the ship.
U.S. refiners able to process and blend heavier crudes also have shown interest in Canadian and Latin American grades, traders added. Marathon declined to comment.
U.S. Energy Information Administration preliminary data through Tuesday showed imports from Mexico and Brazil rising after the storms.
Of the up to 250,000 bpd of lost Mars crude production, about 80,000 bpd typically are sent to Asian refineries, according to cargo tracking firm Vortexa.
South Korea has accounted for about two-thirds of Mars exports this year, said Kpler oil analyst Matt Smith.
Before Hurricane Ida hit, China’s Unipec and South Korean refiners had boosted Mars crude purchases to take advantage of favorable prices but faced some cancellations.
However, they were able to replace the supplies with crude from the Middle East and Russia, traders said.
“All types of medium sour crude can replace Mars such as Oman, Urals and Basra, depending on refinery configuration,” a trader with a Chinese firm said.
Unipec recently bought 200,000 tonnes of Russia’s Urals crude for October delivery amid a broader weakness in price differentials.
South Korea’s second largest refiner, GS Caltex Corp, had a Mars cargo cancelled that had been set to arrive in late November, and the company has not yet looked for replacement crude in the spot market, according to traders.
Source: Reuters
Mr Dzamesi, therefore, invited the private sector to commit to energy, adding that the Bui Power Authority is ready for such partnerships in the next phase of the Climate Change fight.
He expressed confidence that the Energy Commission’s collaboration with the Ministry of Energy in promoting electric vehicles and also drive the productive utilisation of excess electricity in the grid system is a step in the right direction. 
Source: https:// energynewsafrica.com 
“Electric vehicles are the future and the future is here with us,’’ the Minister said.
Dr Opoku Prempeh added that his Ministry was working closely with the Ministry of Finance to secure an import waiver for 100 per cent electric vehicles to help drive the penetration of electric vehicles, while putting together other measures to drive further growth and the sustainable utilisation of electricity.
He was hopeful that the maiden conference would provide the platform to shape the E-mobility agenda to open new markets for green investments in Ghana.
The Board Chairman of Energy Commission, Prof Ebenezer Oduro Owusu, said the Commission was in the process of developing standards and regulations for electric vehicle charging infrastructure to ensure safety and a level playing field for the EV market.
A Deputy Minister for Transport, Fredrick Obeng Adom, said through collaborative efforts, the Ministry had also commenced a process to develop an E-mobility Policy for Ghana, incorporating implementation frameworks for the deployment and scale-up of Electric Vehicles.
“This would be the first of its kind and would propel green development initiatives. It will also serve as important leverage that would set the tone for the gradual decarbonisation of our transportation system,’’ he said.
