Ugandan President Yoweri Museveni has appointed a new Minister of Energy & Mineral Development in a cabinet reshuffle.
The newly sworn-in Minister of Energy and Mineral Development, Ruth Nankabirwa, replaces Mary Kitutu.
Kitutu was appointed Minister for Karamoja Affairs. President Museveni is six months into his new tenure as
President after winning a tightly contested election.
Before her appointment, Nankabirwa was a Chief Whip and a past Minister of Defence.
Sidronius Okasai has been appointed as Deputy Minister of State for Energy & Minerals.
Nankabirwa, a strong supporter of President Museveni and a Member of Parliament for Kiboga district, lost her seat in the last election.
Source:www.energynewsafrica.com
Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh, is expected to lead a delegation of government officials and business owners to this year’s Offshore Technology Conference (OTC) in Houston, Taxes, USA, from 16-19 August.
The Offshore Technology Conference (OTC) is where energy professionals around the world meet to exchange ideas and opinions to advance scientific and technical knowledge for offshore resources and environmental matters.
Since 1969, OTC’s flagship conference is held annually at NRG Park (formerly Reliant Park) in Houston.
In 2020, the global event, which usually took place in May, could not come on because of the outbreak of Covid-19 which led to the cancellation of several global events.
Dr. Matthew Opoku Prempeh, who will be attending OTC for the time since assuming office in March this year, would deliver the keynote speech at the West Africa Session of the ‘Around the World’ series to promote FDI into Ghana’s petroleum sector.
He would also open the Ghana Delegation Pavilion at the conference as well as visit and engage private sector investors in Houston, the Energy and Petroleum capital of the world.
OTC 2021 Participation: Delegates Registration, Travel Arrangements, Hotel Accommodation, Ground Transportation, Electronic Brochures etc.
Please Contact:
JUBILEE TOURS
Dr. Emelia Assiakwa
Cell: 0243636770
Email: [email protected]Ghana Delegation Pavillion
Registration, Booth Purchases & Exhibition
Please Contact:
McDAN GROUP
Leonora Appiah
Cell: 024 474 8575
Email: [email protected]
Ghana’s leading indigenous oil marketing company, GOIL, has maintained the 2019 dividend it paid to its shareholders for the year 2020 despite the impact of the Covid-19 pandemic which caused the company’s profit to dip.
The company’s profit, after tax in 2020, was GHC90.03 million, down by 14.5 per cent, compared to that of the previous year.
Consequently, earnings per share also fell by 14.5 per cent.
Despite the fall, Chairman of the Board, Mr Kwamena Bartels said the Board has decided to pay a dividend by the same amount as that of last year which was GHC0.45 per share.
Speaking at the company’s 52nd Annual General Meeting which was held virtually, Mr Kwamena Bartels said GOIL remained committed to its shareholders, hence, the decision to maintain the dividend despite the impact of Covid-19 pandemic on the company’s earnings last year.
Innovation
Mr Bartels said GOIL had put in place initiatives especially in the area of technology to boost its operations.
For instance, he said the company had leveraged on technology to improve its cash collection methods through the use of cashless system by its customers to purchase items at its service stations and other outlets.
“The company leveraged information technology to get our bank accounts credited the following day after cash collections from our stations. The intervention has also helped to reduce stock-outs at the stations because our retail dealers are directly credited with the amounts collected at the stations, right on the following day,” he said.
With regard to electronic transactions, he said GOIL had integrated all its service on GHlink, a national payment platform.
“This means that any GHlink electronic card holder can use card to buy fuel at all our 400 service stations throughout the country,” he said.
GOIL, he noted had also developed a mobile phone application that would allow customers to use QR codes for payment, a move that would eventually phase out the use of cards for payment.
“Whilst reducing physical cash handling, this would further mitigate the risk of transmitting any virus during transactions,” he said.
Source: www.energynewsafrica.com
The Chief Executive Officer of Association of Ghana Industries(AGI), Seth Twum Akwaboah, is urging stakeholders in the West Africa to open their minds to discussions on nuclear power in order for the country to explore the possibility of adding nuclear power to the energy mix.
Delivering an opening speech at a stakeholders’ forum on Ghana’s nuclear efforts in Accra, capital of Ghana, he said the challenge of striking a balance between protecting key energy service producers like GRIDCo, VRA and ECG to survive and private operators in the business to remain competitive is crucial for the nation.
Regardless of this challenge, Mr. Akwaboah was of the view that the government has to set price for energy at a lower rate to make other stakeholders in the business competitive just like it is in other parts of Africa.
“Today, I must say that Ghana’s energy cost is one of the highest in Africa. In Ethiopia, I understand it is below five percent per kilowatt. Now, we have Continental Free Trade Agreement; all these countries are competing with Ghana,” he noted.
According to the AGI boss, a recent research indicated that Ghana’s energy cost is one of the highest on the continent.
Seth Twum Akwaboah (Right)
To change the narrative, he said stakeholders must urgently embrace the nuclear discussion and explore it in time to reduce energy cost for Ghanaians.
He further observed that the African Continental Free Trade Agreement makes it even more threatening for Ghana because with the cost of electricity doing business in Ghana becomes uncompetitive as compared to countries like Morocco, Egypt and Kenya.
He advised that the sentiments and apprehensions associated with nuclear power energy should be shelved and rather explore its potentials for competitive advantage as a country.
He opined that the so-called advanced countries have taken the lead in the use of nuclear and they export their goods to Africans to buy to make them even more comfortable.
Ghana’s quest to use nuclear technology for power generation dates back in the 1960’s when the country’s first President, Dr. Kwame Nkrumah established the Ghana Atomic Energy Commission to spearhead the nuclear agenda.
Unfortunately, the idea was stillbirth and abandoned until 2008 when a Cabinet decision to include nuclear in the country’s electricity generation mix was taken to help curb the national perennial power crisis.
The government’s bid to provide a solution to the country’s 10-year cycle of power crisis, coupled with the need for an alternative base-load plant, established a nuclear energy programme implementing and coordination body known as the Ghana Nuclear Power Programme Organisation (GNPPO).
In accordance with the framework advocated by the International Atomic Energy Agency (IAEA) for Nuclear Power Infrastructure Development, GNPPO developed a three-phase roadmap for Ghana’s initiative.
The country has since 2018 established an Owner/Operator entity, the Nuclear Power Ghana (NPG) for its 1st Nuclear Power Plant and has successfully completed the first Phase of the Nuclear Programme.
Source:www.energynewsafrica.com
A lawyer for Mr. Asante Berko, a former Managing Director of Tema Oil Refinery, Ghana, has rejected media reports suggesting that his client was found guilty of paying bribe to Ghanaian officials to facilitate a contract for a Turkish energy company which wanted to build a power plant in Ghana.
According to the lawyer, the client never admitted or denied any wrong doing.
“Mr. Berko recently settled a case with the Securities & Exchange Commission of U.S without admitting or denying the allegations in the SEC’s complaint. Neither the SEC nor the court found Mr. Berko guilty,’’ a statement from Carl H. Loewenson, Jr, a Partner at Morrison & Foerster LLP in New York, USA, said.
Mr. Berko, a former executive of Goldman Sachs was charged by SEC in an April 2020 civil lawsuit with facilitating as much as $4.5 million in bribes to help a Turkish energy company win a contract to build a power plant in Ghana.
He subsequently resigned his position as Managing Director of TOR to contest the claim by SEC.
According to the lawyer, SEC, in their complaint, alleged that Mr Berko had received $2 million as compensation from a Turkish energy company “for arranging the bribery scheme.
“The SEC sought disgorgement of those allegedly “ill-gotten gains,” plus interest, plus a monetary penalty. Even before Mr. Berko responded to SEC’s complaint, SEC agreed to settle for disgorgement of $275,000 (plus interest), with no penalty.
“No one found Mr. Berko guilty. Mr. Berko settled with SEC and the SEC’s case is now closed,’’ the statement concluded.
Source:www.energynewsafrica.com
A former Minister for Power in the Republic of Ghana, Dr Kwabena Donkor has welcomed the government’s decision to probe the termination of the GPGC Emergency Power Agreement which has caused the West African nation a US$170 million judgment debt.
In 2015, Dr Kwabena Donkor, on behalf of the Government of Ghana, signed a five-year Emergency Power Agreement with Ghana Power Generation Company (GPGC) to produce 107MW of electricity.
Per the details of the agreement, Ghana was to provide a site for the plant, fuel for the plant and water which would require the construction of pipelines to the nearest Ghana Water Company Limited’s pipeline for the supply of clean water and sea water for cooling.
Unfortunately, the company could not meet the construction date.
Then upon assumption of office, the current administration reconstituted a committee, which was set up by the previous administration, to look into all the power purchase agreements it had signed.
The committee recommended that PPA of ASG, Chrispod Hydro Power Ltd and GPGC should be terminated because they had not reached financial close.
For their compensation, the committee proposed that ASG should be paid US$17 million for early termination while Chrispod Hydro Power Ltd and GPGC were to be given US$22 million and US$18 million respectively.
Cabinet accepted the recommendations and the three PPAs were terminated.
The Government of Ghana would have paid US$178,404,914.68 on capacity charges alone for a period of four years if GPGC had constructed their plant.
The decision did not settle well with GPGC, which filed a case at the International Court of Arbitration in London and subsequently won the case against the Government of Ghana.
But speaking on Accra-based Joy FM, Dr Donkor said he was ready to face the investigative bodies over the contract he signed on behalf of the Government of Ghana.
“I am a law-abiding Ghanaian. If the CID says they want to investigate something, what do I have to hide?” he quizzed.
He further stated that “I will go to the CID. This is not the first time I have been called to the CID.”
Dr Donkor also questioned the basis under which the agreement was cancelled by the government.
“First of all, when I saw a couple of the termination letter, the basis of termination, the operating phrase was that they had not obtained an energy commission licence. In the agreement, government was obliged to assist them to obtain all licences and permits so if we have that obligation on our path, we don’t turn round and use that as an excuse or a reason to terminate.”
According to him, the Attorney General is hunting for a scapegoat for what he sees as wrongful termination of the contract.
“Other than that, we don’t expect the Attorney General to sit on radio threatening and intimidating. You don’t expect that,” he told Winston Amoah, the host.
He wanted the government to reassess the issue and address concerns raised by the court in London.
The former Minister added that since the recent development ensued, “nobody even asked me for a second that what was the basis for the agreement, why did you sign this or what informed this agreement. Nobody.”
Source:www.energynewsafrica.com
Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh says Ghana is looking forward to having nuclear energy as part of the country’s energy mix.
This, he explained, is because energy from nuclear is clean and also one of the cheapest sources of energy.
“Government envisions an energy future not of either nuclear or renewables, but of nuclear and renewables.
“There is a growing chorus of voices recognising that nuclear energy has an important role in decarbonizing electricity generation for accelerated industrial development,” Dr Matthew Opoku Prempeh observed.
The Minister said this in a speech read for him by Seth Mahu, a Deputy Director at the Ministry of Energy, at a workshop organised by the Association of Ghana Industries (AGI) on Ghana’s Nuclear Power Efforts in Accra.
“While renewable energy sources are expected to continue to grow significantly, nuclear power, an important part of today’s clean energy, is also the largest source of low-carbon electricity generation in advanced economies, providing about 40 percent of all low carbon generation,” Dr. Matthew Opoku Prempeh said.
Quoting an IEA report titled ‘Nuclear Power is a clean energy system’, he said the report reiterated the fact that without nuclear investment, achieving a sustainable energy system would be much harder and would have implications for emissions, costs and energy security in any country.
Ghana’s Energy Minister also emphasised that within Ghana’s power generation circles, issues on consistent demand growth, high tariffs for industries, affordability and resilience criteria have brought to the front burner the issue of an alternative baseload power.
As a measure to augment Ghana’s energy sources in 2007, Ghana’s former President, Agyekum Kufuor set up a committee to explore the possibility of Ghana using nuclear energy as an alternative baseload source of power.
That was in furtherance of Ghana’s first president, Dr. Kwame Nkrumah’s vision of establishing Ghana Atomic Energy Commission (GAEC) to spearhead the establishment of nuclear power plant in the future.
This good initiative, Dr. Opoku Prempeh said was continued by successive governments, leading to the birth of Nuclear Power Ghana (NPG), the owner cum operator of Ghana’s intended first Nuclear Power Plant.
He assured that he would focus on providing relevant resources to build a strong safety culture and resilient management system that adheres to standards in the planning and development of the 19 infrastructural issues and related processes.
Dr. Opoku Prempeh also expressed the believe that the forum focuses on future nuclear energy innovation and future technologies for clean energy and to drive deep decarbonisation of Ghana’s power agenda.
According to him, there are many examples of innovation in the nuclear industry that is already paving the way ahead.
In addition to electricity generation, nuclear energy, he said can provide solution to an even wider range of applications for the country.
Innovative nuclear technologies such as small Medium Rector (SMRs), Dr. Opoku Prempeh explained, would complement existing large reactions to enable deep decarbonisation as part of the clean energy transition.
“Nuclear technologies are equally improving people’s lives in many other ways and are supporting sustainable developments. Medical, industry and agricultural applications of nuclear technologies are used all over the world, including Ghana,” he said.
Ghana’s Energy Minister further stressed that a new nuclear power station does not only generate reliable low-carbon electricity but also provides many wider social and economic benefits both during its development, construction and subsequent 60-year operational phase.
Source: www.energynewsafrica.com
A Hight Court in the Republic of Ghana, West Africa, presided over by Justice Mariama Sammo (MS) has ordered Italian oil and gas firm, ENI and Vitol, to set aside 30 percent of oil proceeds from the Sankofa Field in an escrow account, pending the final determination of an application filed by Springfield E&P, a wholly Ghanaian upstream player.
Springfield E&P filed a suit at Ghana’s Commercial Court ‘3’ Division of the Accra High Court following Eni’s refusal to unitise the Afina oil block held by Springfield E&P and Sankofa Field operated by Eni and Vitol because the two oil blocks are said to straddle.
The two oil companies were directed to unitise the two fields by the Ministry of Energy about a year ago but it has since not happened.
Among the reliefs sought by Springfield was an order directed at the Defendants to comply with the directive issued by the Minister of Energy in the letter of 9th April 2020 and enter into an agreement forewith Plaintiff to produce and develop the accumulation of the petroleum in the Sankofa and Afina fields as a single unit.
The oil firm also wanted the court to direct that “any income, profits and other finds due Plaintiff from Defendant’s exploration and production activities in the Sankofa Fields be paid to the Plaintiff upon account having been taken”.
Eni and Vito are expected to pay an amount approximately $40million a month which will be directed to an account agreed by both parties.
The court’s order takes effect from today.
Commenting on the ruling, Kevin Okyere, CEO and founder of Springfield, described the ruling as a “welcome vindication of Springfield’s position on the issue of unitization and a positive result”. He said that the Company was forced to take the legal route following Eni’s reluctance to follow the Minister of Energy’s directive and for all parties to reach an amicable resolution to this unfortunate impasse.
Kevin added “Springfield is not interested in stalling ongoing crude oil production on the Sankofa Field, and believe in fairness and justice for all, irrespective of their size and position. The consequences of this case for the Ghanaian oil industry will be systemic and immediate”.
Regional oil and gas actors have been under severe pressure following disruptions caused to supply chains in the wake of the Covid-19 pandemic and market changes triggered by the global energy transition. In the light of such unprecedented challenges, Springfield believes Ghana cannot afford to delay development of a flagship project capable of contributing significantly to the State’s coffers and ultimately improve the standard of living of Ghanaians.
Kevin concluded by saying that, “Springfield looks forward to working with Eni as the operator of the unitized field in maximizing the production and the economic benefits for all stakeholders, including the Government and citizens of Ghana”.
RULING (SPRINGFIELD V. ENI & VITOL)Source: energynewsafrica.com
Ghana’s leading indigenous Oil Marketing Company, GOIL plans to explore opportunities in Ghana’s neighbouring countries by acquiring fuel retail outlets and operate them to increase the company’s assets base.
The Board Chairman of the leading OMC, Kwamena Bartels said the company would resume scouting for potential filling stations outside the country.
He said the strategy is to acquire already existing stations instead of constructing them.
“We believe that going outside the country will improve the company’s brand image which will eventually lead to increased patronisation of our products, thus, increasing returns on shareholders investment,” he said.
Speaking at the 52nd Annual General Meeting, Mr Kwamena Bartels noted that 2021 looks to be an exciting year as the company anticipates aggressive marketing of bitumen products
The company is constructing a US$35 million bitumen plant in Tema and it is expected to be completed in September 2021.
According to Mr Bartels, the bitumen products GOIL would be introducing onto the market is polymer modified which ranks among the best quality bitumen grades in the market.
“Ghana has experienced so many road construction failures and we hope that our bitumen product will help the construction of better roads,” Mr Kwamena Bartels stated.
Mr Bartels explained that GOIL is also looking at expanding its non core fuel business.
“We intend to engage potential partners with high brands to do business at our stations. We plan to take a very active part in the new model for distribution of Liquified Petroleum Gas (LPG) to the industry, educational institutions and individuals.”
Responding to questions by the press on GOIL’s decision to explore market in other West African countries, Chief Operating Officer of GOIL, Josiah Adzew said the company has done a lot of work by visiting a number of West African nations to assess their business environment.
He contended that exploring other West African nations would help to increase GOIL’s shareholders gain.
Source:www.energynewsafrica.com
The Government of Ghana has hinted of plans to investigate the award of US$164 million judgment debt to Ghana Power Generation Company (GPGC) by a commercial court in London.
The West African nation signed a Power Purchase Agreement (PPA) with GPGC during the previous administration led by His Excellency John Dramani Mahama to procure 107MW of power.
The PPA was, however, terminated by the current administration following recommendations by a committee constituted by the Energy Ministry to review all the power purchase agreements signed by the previous administration.
This development did not settle well GPGC which, consequently, filed a suit at the Arbitral Tribunal in London to challenge the government’s decision.
The Arbitrator, upon hearing the argument put forward by GPGC and the Government of Ghana, awarded GPGC a total of US$ 134,348,661 in respect of its Early Termination Payment claim.
This judgment debt has become a subject of media discussion with many Ghanaians raising concerns about it.
Commenting on the development on an Accra-based Joy FM, Ghana’s Attorney, Mr Godfred Yeboah Dame gave hint of his intention to lodge a formal complaint with the Criminal Investigations Department (CID) of the Ghana Police Service to investigate the circumstances leading to the award of judgment debt against the Government of Ghana.
“I, on account of all of this, am going to write a formal complaint requesting an enquiry by the CID into the conduct of the public officers who acted in the manner which resulted in the signing of an agreement which resulted in financial loss to the state.
“I think that first and foremost, the entry into the agreement itself was wrong. There was no justification because their own committee determined that the agreement was going to result in excessive power.”
Source: www.energynewsafrica.com
AMEA Power, a subsidiary of UAE-based Al Nowais Investments (ANI), has commissioned its 50MW solar photovoltaic (PV) plant in Blitta, Togo, marking the country’s first utility-scale renewable energy project developed by an Independent Power Producer (IPP), and one of the largest solar PV IPP plants in West Africa.
Officially named Sheikh Mohamed Bin Zayed, after His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, the PV plant has been delivered in record time, with just 18 months between the signing of the Power Purchase Agreement (PPA) and commencement of commercial operations.
His Excellency Faure Gnassingbé, President of Togo, and AMEA Power’s Chairman, Hussain Al Nowais, attended an inauguration ceremony today [22nd June 2021] at the power plant site. Other high-profile attendees included the Prime Minister of Togo, Victoire Tomegah Dogbé; Minister Delegate to the President of the Republic, in charge of Energy and Mines in Togo, Mila Aziable; Director of Compagnie Energie Electrique du Togo (CEET), Laré Santiégou; Senior Advisor to the President of Togo, Shegun Adjadi Bakari; President of the West African Development Bank, Serge Ekué; and the Deputy Director General of the Abu Dhabi Fund for Development (ADFD), Khalifa Al Qubaisi.
The power plant will be operated for 25 years by AMEA Togo Solar, saving more than 1 million tonnes of CO2 emissions over the course of its life. The plant is instrumental in supporting Togo’s ambitious US$8 billion 2018 – 2022 National Development Plan (NDP), which aims to achieve universal access to electricity by 2030 and to increase the share of renewables in the energy mix to 50%.
Hussain Al Nowais, Chairman of AMEA Power, commented: “We are delighted to launch the Sheikh Mohamed Bin Zayed PV plant and extend our congratulations to all those involved. Togo was an obvious choice for AMEA Power’s first operational power plant in Africa, with it being an important trade hub in West Africa, along with the government’s progressive regulatory framework for renewable energy projects, which was key in ensuring the completion of the project in a fast, efficient, and responsible manner. This is an incredibly exciting time for AMEA Power, and we are on track to becoming one of the fastest-growing renewable energy IPPs, with several additional projects set to achieve financial close in 2021.”
Mila Aziable, Minister Delegate to the President of the Republic, in charge of Energy and Mines in Togo, commented: “The development of the Sheikh Mohamed Bin Zayed PV plant is an excellent example of a successful Public-Private Partnership in Africa, with AMEA Power utilising Togo’s committed implementation unit and favourable investment climate to pre-fund a large-scale renewable energy project on balance sheet. We are delighted to have worked with a team of such highly-skilled professionals with demonstrated know-how in the energy sector.”
The project was supported with concessional loans from the West African Development Bank (BOAD) and the Abu Dhabi Fund for Development (ADFD). It was pre-funded on balance sheet, and then refinanced, a unique model for a large-scale IPP project in Africa. This is indicative of the level of project certainty created by the NDP’s regulatory framework, which provided AMEA Power with the necessary level of assurance and comfort to embark on the project’s execution well in advance of the financing being arranged.
Community Impact
The construction of the power plant helped to create local employment opportunities, with 80% of plant workers hailing directly from Togo.
AMEA Power also invested directly in community initiatives in Blitta, which positively impacted more than 100,000 people, by constructing (and providing equipment for) one new clinic and three new school buildings; renovating four schools; providing school supplies for 1,400 students; and installing a water pump at a local primary school. AMEA Power will provide electrification via solar power to the schools and clinic.
Moreover, AMEA Power’s internship programme brought 36 engineering students from various technical institutions in Togo to the Sheikh Mohamed Bin Zayed PV plant, preparing them for employment by giving them the opportunity to apply their theoretical knowledge and develop their practical skills in renewable energies.
In response to COVID-19, AMEA Power distributed essential food and hygiene products to 8,500 families in nine countries across Africa, including 1,100 families in Togo. AMEA Power also distributed food and hygiene products to a further 8,000 families during Ramadan this year, which reached 1,100 families in Togo.
Source: www.energynewsafrica.com
Residents in parts of Accra, capital of Ghana, will from Monday, 28th June to 19th July, 2021, experience interruptions in power supply which is expected to last for twenty-two days.
The power supply interruption will occur between 6pm and 12 midnight.
In a statement issued by Ghana’s Southern power distribution, ECG, it said the interruption in power supply has become necessary to facilitate the work of contractors as part of the project to improve power supply reliability and system voltages.
According to the statement, the exercise would result to the load to the Trasaccco Bulk Supply Point (BSP) being managed to enable the construction of towers at the Volta, East Accra and Achimota substations and also to complete the stringing and commissioning of a new double circuit 161kV Volta-Achimota Transmission line.
“This exercise will lead to a shortfall in transmission of power to Accra during the peak load hours,” the statement said.
Some of the areas to be affected are Adjiriganor, American House, Lister Hospital, Palm Wine Junction, La Beach Hotel, Greda Estates, Sidalco, Teshie Maamli and VRA flat.
“While calling on customers to bear the inconvenience with us, we pledge our commitment to completing the project on time,” the statement said.
Source: www.energynewsafrica.com
By Dean Foreman And NJ Ayuk
Throughout the 2021 economic recovery, API’s data have demonstrated the intertwined relationship between the nation’s recovering economy and affordable, reliable energy. Leading economic indicators have continued to rise, and along with them, so has oil demand – even as global oil drilling and investment have fallen.
According to the IMF and Bloomberg consensus of economic forecasters, global real GDP growth could average 4.8% in 2021 compared with 2020: its strongest expansion since 1976, when the price of Brent crude oil was just over $50 per barrel, adjusted for price inflation. Recent oil prices have been closer to $70 per barrel, and the key question now, is whether we have the energy to support such strong growth.
In that context, actions by the Biden administration that negatively impact or could impact oil and natural gas production appear detached from the critical need for secure, accessible energy:
• Suspension of oil drilling leases (https://n.pr/3wIBO9u) in the Arctic National Wildlife Refuge (ANWR).
• Paused (https://reut.rs/3vK3byO) new oil and natural gas leases on U.S. federal lands.
• Canceling (https://on.wsj.com/3xCSEH6) the Keystone XL pipeline.
• Red line (https://on.wsj.com/3iWwQBT) discriminatory proposed tax hikes on energy companies, singling them out from every other sector of the economy for higher taxes.
Limiting access to oil and natural gas reserves, canceling pipelines and neglecting energy infrastructure and targeting the energy industry for higher taxes – hampering investment and reinvestment – are all moves that should make us question where the energy we rely on every day is going to come from under this administration.
Energy makes economies – ours and the world’s – go. This linkage manifested as a massive energy surplus during the depths of the 2020 COVID-19 recession, and we’ve recently seen buoyancy in a positive direction as oil demand rebounded along with the economy, as we discussed here (https://bit.ly/3gLsif7).
Among wealthy economies like the U.S., restricting oil and natural gas production could adversely impact consumers but would not necessarily derail economic growth so long as imports remained affordable.
For many emerging economies, however, energy policies averse to fossil fuels are a direct assault on their development and potentially, have a negative impact on the lives of billions of people in the process.
Under the Paris climate agreement (https://bit.ly/3vNUX8K), many emerging economies signed on due to promises of financial assistance, technology transfers and capacity building. Having said that, the International Energy Agency (IEA) has now laid out a Net Zero by 2050 (https://bit.ly/3vO4egV) scenario calling for no – that is, zero – investment in fossil fuel supply projects starting today. Under this scenario, there would not even be natural gas-related investments, which have been the driving force for lowering power sector emissions over the past decade.
Yet, at the same time, IEA’s Oil Market Report (OMR) (https://bit.ly/2Uod3RN) for May 2021 candidly noted that “under the current OPEC+ production scenario, supplies won’t rise fast enough to keep pace with the expected demand recovery.”
For the past two quarters, we’ve continually said that oil demand was recovering in tandem with the economy; that U.S. and global oil demand earlier this year had already neared its pre-COVID levels; and, without more drilling and investment expected, economic growth and recovery could be a recipe for an oil shortage, as we detailed here (https://bit.ly/3h4uQoX).
If we weren’t emphatic before now, let’s be amply clear that the world needs energy, and our collective prosperity depends on it. Among affluent nations, the restrictions on oil and natural gas could spur upward pressure on prices and, consequently, headwinds to economic growth and prosperity that could disproportionately affect vulnerable households and their ability to make ends meet.
Energy requires investment, but recent investment levels raise alarms. In the first quarter of 2021, publicly listed natural gas and oil companies across the industry value chain collectively invested $38 billion, which was the lowest on record for any quarter since 2008 including the Great Financial Crisis.
Meanwhile, the U.S. queue of energy infrastructure projects under construction basically fell by half over the past year – to $174 billion currently from $344 billion one year ago, per API estimates. This says that, as some projects have been completed and others delayed or canceled, the flow of new multi-billion-dollar energy projects has frozen, which in turn means that many oil and natural gas projects that take years to build won’t be there when we need them.
It’s actually a global problem as worldwide energy investment and oil drilling have fallen to historic lows. Even in the Middle East and North Africa (MENA) region, where oil can be developed relatively rapidly and economically, energy investments committed between now and 2025 have fallen and lost share in relation to investments in other forms of energy per APICORP (www.APICORP.org).
For Africa and other emerging economies, a lack of energy could impair human and economic development. In fact, a dearth of investment coupled with a divestment campaign against oil and natural gas could be worse than the energy limitations imposed on Apartheid South Africa, denying them the ability to develop their own resources.
Moreover, the geopolitical balance that abundant energy supported – and the U.S. ostensibly values – will shift tectonically. Africa as a continent will be left at the mercies of China. The prospect of Beijing becoming the main source of outside financing for African oil, gas, and gas-to-power projects troubles many in the continent. African nations do not have to shy away from cooperation with China, they are sovereign nations. However, having multiple alternatives is key to drive more market and good governance reforms that the continent could use to advance its development.
Africa needs and should have a range of partners to work with, rather than fall into a pattern of not having to look further than satisfying China’s requirements. China has a less-than-stellar track record on environmental protection, despite being a signatory to the Paris climate accord, and it will be leading Africa.
Particularly for Africa and other emerging economies, which are broadly expected to shoulder the majority of global economic growth for decades to come, the policies that drive economics and energy are intertwined and foundational. We already see indications of an energy shortfall as the global economy recovers – and the Biden administration’s policies could exacerbate the situation and put energy security at risk, at home and abroad.
To move towards identification of emerging risks and provide a more forward-looking view, the focus on smart power technologies, cost-effective solutions, and the global drive towards a decentralized, decarbonized, and secure energy supply that addresses climate change and stimulates economic growth would be necessary steps to consider in the sector.
Dean Foreman, Ph.D., is a Chief Economist at API – American Petroleum Institute and NJ Ayuk, Executive Chairman of the African Energy Chamber
Ghana’s President, H.E Nana Akufo-Addo has confirmed the appointment of the former Minister for Zongo and Inner City Development, Dr Mustapha Hamid, as the new Chief Executive Officer of the National Petroleum Authority (NPA).
His appointment takes effect from July 1, 2021.
The news was communicated in a letter dated 17th June, 2021.
Prior to this, cousin of President Akufo-Addo Gabby Asare Otchere-Darko had hailed Dr Mustapha Hamid on social media as an honest person.
“To put it mildly, he is one of the most principled and honest human beings I have ever known in my life. A sacred trait I pray will guide and guard him for the rest of his life.
“Hamid is the kind of person when he takes campaign money, based on a budget, and he ends up spending less than that to do the same job, he brings back the change!
“I’ve known Hamid for over two decades now. He is admirably religious, disciplined but liberal. It is this personality quirk that allows him to get on well with people. But, he resents cheats and those he considers disloyal,” Gabby Asare Otchere Darko wrote on his Facebook when Mustapha Hamid celebrated his 50th birthday last week.
It would be recalled that energynewsafrica.com reported that Dr Mustapha Hamid had been appointed as the new CEO of NPA.
At a meeting at the Energy Ministry recently, he reportedly wrote his name as the incoming CEO.
The country’s downstream petroleum regulator, NPA, in a flyer sighted by energynewsafrica.com, confirmed the appointment of Dr Mustapha Hamid and congratulated him.
Source: energynewsafrica.com
Unfortunately, the idea was stillbirth and abandoned until 2008 when a Cabinet decision to include nuclear in the country’s electricity generation mix was taken to help curb the national perennial power crisis.
The government’s bid to provide a solution to the country’s 10-year cycle of power crisis, coupled with the need for an alternative base-load plant, established a nuclear energy programme implementing and coordination body known as the Ghana Nuclear Power Programme Organisation (GNPPO).
In accordance with the framework advocated by the International Atomic Energy Agency (IAEA) for Nuclear Power Infrastructure Development, GNPPO developed a three-phase roadmap for Ghana’s initiative.
The country has since 2018 established an Owner/Operator entity, the Nuclear Power Ghana (NPG) for its 1st Nuclear Power Plant and has successfully completed the first Phase of the Nuclear Programme.
Source:www.energynewsafrica.com
Source: www.energynewsafrica.com
“I’ve known Hamid for over two decades now. He is admirably religious, disciplined but liberal. It is this personality quirk that allows him to get on well with people. But, he resents cheats and those he considers disloyal,” Gabby Asare Otchere Darko wrote on his Facebook when Mustapha Hamid celebrated his 50th birthday last week.
It would be recalled that energynewsafrica.com reported that Dr Mustapha Hamid had been appointed as the new CEO of NPA.
At a meeting at the Energy Ministry recently, he reportedly wrote his name as the incoming CEO.
The country’s downstream petroleum regulator, NPA, in a flyer sighted by energynewsafrica.com, confirmed the appointment of Dr Mustapha Hamid and congratulated him.
Source: energynewsafrica.com