EU Agrees Windfall Tax On Energy Firms
The European Union has agreed to impose emergency measures to charge energy firms on their record profits.
Ministers have agreed windfall taxes on certain energy companies as well as mandatory cuts in electricity use.
The plan includes a levy on fossil fuel firms’ surplus profits and a levy on excess revenues made from surging electricity costs.
The cash raised is expected to go to families and businesses.
But the bloc is divided on whether and how to cap the wholesale price of gas.
It comes as Europe braces itself for a difficult winter due to the cost of living crisis and squeeze on global energy supplies.
The bloc is largely trying to wean itself off Russia energy but it has left it scrambling for other alternative, expensive, sources.
A windfall tax is imposed by a government on a company to target firms that were lucky enough to benefit from something they were not responsible for – in other words, a windfall profit.
Energy firms are getting much more money for their oil and gas than they were last year, partly because demand has increased as the world emerges from the pandemic and more recently because of supply concerns due to Russia’s invasion of Ukraine.
EU ministers estimate that they can raise €140bn (£123bn) from the levies on non-gas electricity producers and suppliers that are making larger-than-usual profits from the current demand.
Earlier this month, the European Commission’s vice-president, Frans Timmermans, said that fossil fuel extractors will be told to give back 33% of their surplus profits for this year.
“The era of cheap fossil fuels is over. And the faster we move to cheap, clean and homegrown renewables, the sooner we will be immune to Russia’s energy blackmail,” he said.
“A cap on outsize revenues will bring solidarity from energy companies with abnormally high profits towards their struggling customers,” he added.
Earlier this week, 15 member states, including France and Italy, asked the EU to impose a price cap on gas bills to slow the soaring costs.
A decision has not yet been announced on a price cap.
“There is big disappointment that in the proposal that is on the table there is nothing about gas prices,” Polish climate minister Anna Moskwa said.
Ms Moskwa said a maximum price for gas would be supported by the majority of European countries and “cannot be ignored”.
In the UK, former Chancellor Rishi Sunak introduced a similar tax to Friday’s EU agreement in May, which he called the Energy Profits Levy.
It was applied to profits made by companies from extracting UK oil and gas, but not those that generate electricity from sources such as nuclear or wind power.
Source: BBC
Ghana: Petrol, LPG Prices Likely To Go Up-IES
The Institute of Energy Security, one of the energy think tanks in the Republic of Ghana has predicted a marginal increment in the prices of petrol (gasoline) and Liquefied Petroleum Gas (LPG) in the first pricing window in October due to the rapid depreciation of the Ghanaian cedi.
The Think Tank, however, noted that the price of diesel (gasoil) may remain unchanged.
“The Cedi depreciation of 4.26% is enough to force prices of petrol and LPG to move upward in significant terms, irrespective of the marginal drop (1.59%) and the marginal increase (0.59%) in the price of petrol and LPG on the world fuel market.
“The Institute for Energy Security (IES) projects some stability in the current price of diesel in spite of the 8.41% fall in the price of the product on the international market, as a result of the 4.26% decline in the value of the local currency against the US dollars,’’ IES said in a statement signed Fritz Moses, Research Analyst.
As of Sunday afternoon, most of the OMCs were still selling petrol and diesel at GH¢10.90 per litre and GH¢14.45 per litre respectively, being the prices for the second pricing window which ended 30th September 2022.
CEDI DEPRECIATION MAY CAUSE AN INCREASE IN LPG AND GASOLINE PRICES FOR FIRST HALF OF OCTOBER
REVIEW OF SEPTEMBER 2022 SECOND PRICING-WINDOW
Local Fuel Market Performance
Gasoline sold lower in the last pricing window across majority of the Oil Marketing Companies (OMCs) monitored by the Institute for Energy Security (IES), with Gasoil price remaining unchanged. The national average price per litre of Gasoline now stands at Gh¢10.90 down from Gh¢11.30 in the last window, representing a 3.54% decrease. Gasoil’s national average price per litre remains unchanged at Gh¢14.45 as OMCs maintained their prices.
The IES Market scan picked Total, Sel, GOIL and Shell/Vivo as OMCs with the highest-priced fuel on the downstream petroleum market. Benab Oil, Zen Petroleum, Goodness Oil, Allied and Petrosol were spotted as the OMCs with the least-priced fuel on the local fuel market.
World Oil Market
The International Benchmark saw a 5.11% price reduction over the previous pricing window’s average price to a current average price of $89.47 per barrel.
Global oil prices continue to trend downwards, largely on fears of a recessions despite repeated claims of an undersupply set to hit the market. Oil traders and investors still see the bigger threat of a recession as a more viable reason in the short-term to price oil below rates seen in weeks past.
Despite the undersupply sentiments not affecting current prices, analysts see a worst-case scenario with oil prices soaring even when we enter the recession period as the years of underinvestment in oil fields production will be the major catalyst for escalating prices.
Some analysts predict prices rising to above $100 per barrel above the current prices that have trended below $90 per barrel in the just ended pricing window.
Oil demand in this year has remained fairly resilient in the face of a multitude of challenges, and even prices of over $100 per barrel failed to curb demand in any significant way earlier this year.
Now, prices seem to be somewhat tempered as we continue to experience consecutive windows of drops from its highs above $100 per barrel to lows close to $80 per barrel, a reduction of close to $20 per barrel.
With the Russian oil and gas embargo set to kick in fully in December, prices are bound to jump because alternative supply is limited, as has been evidenced in OPEC’s consistent failure to meet its set production targets within the course of the year.
With further OPEC production cuts set to be put in motion as the weeks run by and the need for the U.S. to start refilling its strategic petroleum reserve (SPR) in order to avoid depletion, oil prices point to an upward trend by the close of the year, returns to highs seen at the end of the Q1 of this year.
World Fuel Market
The world fuel market saw price changes as monitored on Standard & Poor’s (S&P’s) Platts platform within the just-ended pricing window.
Gasoline price fell by a marginal 1.59%, from its initial price of $847.11 per metric tonne to the end date price of $833.68 per metric tonne.
Gasoil price however saw a sharp decline of 8.41% from its earlier price of $1092.92 per metric tonne to a present price of $1001.05 per metric tonne.
Liquefied petroleum gas (LPG) price on the international market increased marginally by 0.79% from $590.97 per metric tonne in the last pricing window to an end date price of $595.65 per metric tonne.
Local Forex Market
Data monitored by the IES Economic Desk from the foreign exchange (Forex) market points to a further depreciation of the Cedi against the US Dollar. The Ghana Cedi depreciated by 4.26% from the previous rate of Gh¢10.10 to the current rate of Gh¢10.53 to the US Dollar.
IES PROJECTIONS FOR OCTOBER 2022 FIRST PRICING-WINDOW
The Institute for Energy Security (IES) projects some stability in the current price of Gasoil in spite of the 8.41% fall in the price of the product on the international market, as a result of the 4.26% decline in the value of the local currency against the US Dollar.
The Cedi depreciation of 4.26% is enough to force prices of Gasoline and LPG to move upward in significant terms, irrespective of the marginal drop (1.59%) and the marginal increase (0.59%) in the price of Gasoline and LPG on the world fuel market.
Signed:
Fritz Moses
Research Analyst, IES ([email protected])
For media engagements, kindly reach Fritz Moses on 0241681742
Source: https://energynewsafrica.com
Ghana: ECG Completely Resolves Prepaid Meter Challenges; Says Customers Can Now Buy Credit In All Their Offices
Customers of ECG, Ghana’s southern electricity distribution company, who had difficulty in purchasing credit on their prepaid meters can now buy credit, energynewsafrica.com can report.
Customers of ECG mostly those using ECash and PNS Metering System, experienced difficulty in purchasing credit for more than three days.
A statement issued by ECG blamed the development on technical challenges.
On Thursday, the company, in an update on the issue, indicated it had been able to resolved the issue halfway and urged customers in Accra, Volta, Central and Eastern Regions to go to their district offices and buy credit.
In another update on Saturday, ECG said the technical challenges had been resolved.
That means, customers could purchase electricity credits from their nearest vending points and all ECG District offices, including Sunday, 2nd October,2022 from 9am -4pm.
ECG once assured its customers that it is working assiduously to restore the power App for an improved and seamless service provision.
Source: https://energynewsafrica.com
Ghana: Manteaw, Minority Raise Concerns Over ‘Missing’ $100M Oil Cash…But Atta Akyea Says Money Not Missing
Even before the dust around the dubious GNPC-Genser Energy gas sale contract could settle, the West African nation’s national oil company, GNPC, is in the news again for another bad reason.
This time, it is about the revenues accrued from the seven per cent interest in the Jubilee and TEN petroleum fields which GNPC failed to lodge into the Petroleum Holding Fund as required by the Petroleum Revenue Management Act (PRMA).
Instead, the Corporation is alleged to have diverted the revenues into the account of Ghana Offshore Holding Company in breach of the PRMA.
Earlier this week, a former chairman of the Public Interest and Accountability Committee (PIAC) raised concerns about the issue and called on the Corporation to return the over $100 million oil revenues to the Petroleum Holding Fund as stipulated by the Petroleum Revenue Management Act.
“The Petroleum Revenue Management Act stipulates that all petroleum revenues howsoever derived are to be first deposited into the Petroleum Holding Fund. There is a good reason for that, which is to enable us to track the revenue flows and demand accountability in terms of how they are disbursed and utilised.
“Contrary to this provision in the Petroleum Revenue Management Act, my information is that Ghana has lifted some oil in respect of that 7% and GNPC has deposited the proceeds from that transaction in an offshore account in the name of the Offshore account,” Dr. Steve Manteaw said as quoted by Citinewsroom.com.
According to Dr. Manteaw, this act by GNPC is illegal.
“My view is that this is a departure or a complete contravention of the provisions of the petroleum revenue management acts, and GNPC has no legal basis for keeping a portion of petroleum revenues outside the petroleum revenue management framework. We’ve had some discussions and GNPC has proffered some explanations but I remain to be convinced that, that action sits well within the legal framework,” he added.
On Thursday, Ghana’s Minority Members in Parliament joined Dr. Steve Manteaw and the Public Interest and Accountability Committee (PIAC) to put pressure on the GNPC to return the missing oil cash into the Petroleum Holding Fund as required by law.
In a statement issued by the Ranking Member of Mines and Energy Committee in Parliament, John Abdulai Jinapor, said: “We have become aware that following the acquisition of a Seven percent (7%) interest in the Occidental (Oxy) transaction in respect of the Jubilee and TEN Fields by the Government ostensibly for GNPC in 2021, the Minister for Finance has clandestinely ceded the shares to an offshore company known as JOHL (a company set-up in the Cayman Islands) in a very surreptitious and opaque manner.”
The statement said the Minority is very much alarmed that contrary to requirements of the PRMA, revenues accruing from the nation’s oil fields are not being paid into the Petroleum Holding Fund (PHF), which has been confirmed in the 2022 semi-annual report on petroleum receipts by the Public Interest and Accountability Committee (PIAC).
As if this is not enough, the report further reveals that Capital Gains Tax was not assessed and collected by the Ghana Revenue Authority (GRA) in the sale of the seven per cent interest by Anadarko in the Jubilee and TEN Fields in 2021.
“This NPP Government is proving by the day that the nation’s oil resources cannot be entrusted in their care because not long ago, the PIAC, under the chairmanship of Dr Steve Manteaw, accused them over their inability to account for about GHȼ2 billion of Ghana’s oil cash for the 2017, 2018 and 2019 fiscal years.
“This is surely another ‘Agyapa’ deal in the making and we, as a Minority, will not sit aloof for this government to raid the national purse, especially at a time when the nation is struggling to raise much needed revenues for critical expenditure,” the statement said.
“We demand that the Minister for Finance and for that matter government, must, with immediate effect, repatriate all such illegal transfer payments into the Petroleum Holding Fund (PHF).
“Failure to comply with our ultimatum will compel the Minority to use the necessary parliamentary processes to haul the Minister for Finance to parliament for possible censure,” the statement concluded.
However, reacting to the issue on an Accra-based Class 91.3 FM, Friday, 30th September 2020, Chairman of the Mines and Energy Committee in Parliament, Samuel Atta Akyea said his findings showed that “there was an opinion from the Attorney General to the effect that they needn’t place the money in that account for the simple reason that there’s a seven per cent equity acquisition in the TEN and Jubilee fields by GNPC Subsidiary and they didn’t have the money, so the Ministry of Finance lent them the money so they do this acquisition; they are trying to improve the governmental stakes in these petroleum blocks.
“When they [GNPC Subsidiaries] took the loan, they were unable to pay it, so they used the petroleum receipts due them to settle it, so the Ministry of Finance took the money and paid for the loan upfront,” Mr Atta Akyea explained.
“The whole problem is simple: that the sheer fact that the money was not lodged in the PHF does not mean the money has been spirited away or stolen. It’s all a balancing account but when it is pushed to the political dimension that some money has been spirited away, it leaves much to be desired,” he added.
He said: “The sum of money, if you look at it, is equal to the seven per cent equity stake that the government, through GNPC Subsidiary, has acquired. Let’s look at it from that perspective. So, when somebody is using his ingenuity to confer advantage and benefit to Ghana, ultimately, how can that be a problem?
“And if the money was not so lodged in the PHF but it is shown that, indeed, the shares have been acquired, and the shares have been paid for, how can that be anything to undermine this country financially?” he wondered.
He continued: “Are we looking at the substance or the form? The sheer fact that the money was not lodged in the account but the money has been applied as it can be applied in the share acquisition to the benefit of Ghana.”
Mr. Atta Akyea, who is the MP for Akyem Abuakwa South in the Eastern Region, said: “My concern, with the greatest of respect, is that even if administrative processes were not followed, is there any disadvantage to Ghana when seven per cent shares have been acquired in the TEN and Jubilee fields?
“That is the point of the matter. If administrative procedures were not followed, has it caused any financial loss to the state or it has helped us financially because if we are not careful, anything becomes political and propaganda.”
He added: “My joy is that no money has been lost to the state yet because we have gained. If there are any tax implications on this transition, then they should be called upon to pay the tax.”
Source: https://energynewsafrica.com
Ghana: ECG Extends Working Hours For Weekend Across District Offices Amidst System Challenges
Ghana’s southern electricity distribution company, ECG, has notified customers that due to technical challenges affecting the smooth service provision to prepaid customers, it will extend its working hours at all its district offices this weekend.
Many ECG customers have, for the past three days, struggled to purchase credit on their prepaid meters, either by using the ECG App or from vending outlets.
The situation has forced them to sleep in darkness for the past few days.
Last Thursday, the power distributor, in a statement, indicated that customers in the Greater Accra, Central, Eastern, Western, and Volta Regions can visit ECG district offices to purchase electricity.
Those in Kumasi, Tema, Nkawkaw and Takoradi are still not able to purchase credit on their prepaid meters.
The electricity company said it would extend its working hours at all district offices from 9:00 am to 4:00 pm on Saturday, October 1, 2022, and Sunday, October 2, 2022.
ECG assured its customers that its team is working “assiduously to rectify the anomaly and ensure a smooth service provision.”
Source: https://energynewsafrica.com
Ugandan: Hundreds Of Students March Against EU Parliament Resolution Opposing EACOP
Hundreds of students in Uganda took to the streets on Thursday to protest the resolution by the European Union Parliament seeking to delay the East African Crude Oil Pipeline (EACOP) project.
The students cautioned the EU to stay away from the project which they believe would go a long way to help in poverty alleviation in Uganda and Tanzania.
Communicating their anger through placards which reads: ‘Leave Our Oil’, the students marched from Kololo Independence Group in Kampala through several streets and ended at the Crested Towers, where the offices of the EU are located.
The representative of the students later met the UE officials in a closed-door meeting.
Mr Yusuf Werunga, President of the Uganda National Students Association (UNSA), told journalists during the protest that Uganda’s development can neither wait nor be postponed.
“We had hope in this pipeline project. This project meant to transform our country and the economy,” he said.
He added: “European Union should respect the sovereignty of Uganda as a country to start dealing with their issues. We have much hope in our country’s oil. It’s going to employ most of us who are in school right now.”
Speaking to the media, the Press and Information Officer of the EU Delegation, Mr Emmanuel Gyezaho said they received a petition from the USA detailing their concerns.
“The appeal was received by the deputy head of EU delegation to Uganda, Mr Guillaume Chartrain, who promised the youth that the petition would be forwarded to the EU parliament and have a discussion on the same,” he said.
Mr Gyezaho said the students used the engagement to reaffirm their support for the EU’s positive transformative projects in Uganda, noting that EACOP can be one of them as long as it is done sustainably.
This is the second protest at the EU offices in less than two weeks by different groups over the same matter.
Last week, activists protested the resolution at the EU offices in Kampala.
On September 16, EU lawmakers voted to pass the resolution that seeks to compel Uganda and Tanzania to delay the development of the EACOP, warning of human rights abuses and the social and environmental risk posed by the project.
However, President Museveni, last Tuesday, called the EU lawmakers opposed to the project “shallow” and reiterated that everything would go on as planned for commercial oil production to start in 2025.
“I encourage the oil companies to continue the refinery and oil pipeline. I hope our partners will join us firmly and advise accordingly,” he said.
Africa Union Watch, a pan-African non-governmental organisation based in The Gambia, also issued a statement and cautioned EU Parliament to stay away from the project.
EACOP is a pipeline project which will stretch 1,443km (896miles) from Lake Albert in western Uganda to the Tanzanian port of Tanga on the Indian Ocean.
Source: https://energynewsafrica.com
He added: “European Union should respect the sovereignty of Uganda as a country to start dealing with their issues. We have much hope in our country’s oil. It’s going to employ most of us who are in school right now.”
Speaking to the media, the Press and Information Officer of the EU Delegation, Mr Emmanuel Gyezaho said they received a petition from the USA detailing their concerns.
“The appeal was received by the deputy head of EU delegation to Uganda, Mr Guillaume Chartrain, who promised the youth that the petition would be forwarded to the EU parliament and have a discussion on the same,” he said.
Mr Gyezaho said the students used the engagement to reaffirm their support for the EU’s positive transformative projects in Uganda, noting that EACOP can be one of them as long as it is done sustainably.
This is the second protest at the EU offices in less than two weeks by different groups over the same matter.
Last week, activists protested the resolution at the EU offices in Kampala.
On September 16, EU lawmakers voted to pass the resolution that seeks to compel Uganda and Tanzania to delay the development of the EACOP, warning of human rights abuses and the social and environmental risk posed by the project.
However, President Museveni, last Tuesday, called the EU lawmakers opposed to the project “shallow” and reiterated that everything would go on as planned for commercial oil production to start in 2025.
“I encourage the oil companies to continue the refinery and oil pipeline. I hope our partners will join us firmly and advise accordingly,” he said.
Africa Union Watch, a pan-African non-governmental organisation based in The Gambia, also issued a statement and cautioned EU Parliament to stay away from the project.
EACOP is a pipeline project which will stretch 1,443km (896miles) from Lake Albert in western Uganda to the Tanzanian port of Tanga on the Indian Ocean.
Source: https://energynewsafrica.com Nigeria: IBEDC Pledges Commitment To Dev’t As Nigeria Celebrates 62nd Indece Day
The Management of Ibadan Electricity Distribution Company (IBEDC) Plc. has congratulated all Nigerians on the 62nd anniversary of existence of Nigeria as an independent nation and a people.
The Interim Managing Director of the company, Engineer Kingsley Achife said the sacrifices and the ideologies of the founding fathers should remain the watchwords for a united and peaceful country.
Engr. Achife, who urged Nigerians to continue to strive for the development of the country, said one of the catalysts that drive the growth and development of any economy is electricity.
Based on this, IBEDC is committed to contributing its best to national development through excellent service delivery, improved power supply, prompt response to customers’ complaints and bridging the metering gap across our franchise.
He explained that IBEDC has put stringent measures in place to ensure good service delivery during the holiday.
“We are aware that our customers are looking forward to enjoying power supply during the holiday, so our technical crew are available to rectify any faults that may arise during this period, and our customer care line 0700123999 will remain active to respond to complaints and reports promptly.”
Wishing their esteemed customers a happy Independence Day, the MD advised motorists to avoid driving under the influence of alcohol and observe traffic rules to prevent collisions with electric poles and other forms of accidents during the independence celebration.
He also implored customers to take advantage of their hassle-free channels of payment such as Quick teller, Payarena, Jumia, Watu, Buypower and ATM to pay their bills and vend.
“Our payment centres are also open during the holiday from 9 am-3 pm to attend to customers,” he added.
Source: https://energynewsafrica.com
Nigeria: Imo State To Start Construction Of 10MW Hydropower Plant
Nigeria will soon start the construction of a 10 Megawatts (MW) hydropower generating plant at Otamiri and Nworie Rivers in Imo State.
This will add to the number of power generation stations the country has.
Governor of Imo State, Hope Uzodimma made this known on the sideline of the preliminary luncheon for the country’s 62nd Independence Day Thanksgiving Mass, held at the Government House Banquet Hall in Owerri.
According to Governor Uzodimma, the Hydro Power Generating plant at Otamiri and Nworie Rivers is geared toward generating and supplying uninterrupted power supply within Owerri Metropolis and beyond.
He further stated that following the recent approval for the dredging of the Orashi River into the Atlantic Ocean, the government has plans to float the Orashi Free Trade Zone for oil and gas.
He said, “With an initial $1.5b foreign investment, this will translate to much more than 300,000 job and economic opportunities.”
The Governor, therefore, appealed to the conscience of the people to shun violence and arms bearing as options to address marginalization as the Shared Prosperity Government is addressing such issues.
Dr. Okore Okorafor, Professor Ngozi Okereke, and Dr C.C. Egwuonwu, lecturers in the Dr. C.C Egwuonwu, all from the Department of Agricultural Engineering, School of Engineering and Engineering Technology, Imo State University, in an academic evaluation of the hydropower potential of Otamiri River for electric power generation, recommended that the hydropower system or plant to be used in the area is a runoff river system.
The University dons, in their research, said, “This is because there is the very low elevation or head to generate a high amount of energy required to drive the turbine.”
They, however, concluded that the required power can only be obtained when there is a direct impact of the force or impact of river flow on the blades of the turbine.
Source: https://energynewsafrica.comPRESIDENCY APPROVES THE CONSTRUCTION OF A 10MEGA WATTS HYDRO POWER GENERATING PLANT AT OTAMIRI AND NWORIE RIVER. pic.twitter.com/pXy69k0D1g
— Imo State Government (@GovtOfImoState) September 26, 2022
Ghana: Update: ECG Partly Resolves Prepaid Meter Anomaly
Ghana’s southern electricity distribution company, ECG, has partly resolved the technical challenges with its ECash and PNS Metering System which made it impossible for customers to purchase credit.
Many customers of ECG especially those in Volta, Kumasi, Accra, Takoradi, Tema, Cape Coast, Kasoa, Winneba, Swedru, Koforidua, Nkawkaw and Tafo have since Tuesday been unable to purchase credit on their cards.
The development has forced them to sleep in darkness.
However, in a statement issued on Thursday to update consumers, ECG said it is progressively resolving the issue.
The power distributor said “customers in the Greater Accra, Central, Eastern, Western and Volta regions can visit our district offices to purchase electricity.”
“Customers should please note that our team is working to restore the systems in the affected areas including Kumasi and Tema, as well as the 3rd party vending centres and the Mobile App.”
The Company expressed its sincerest apology for the inconvenience caused to affected customers adding “we are resolved to work assiduously to restore the system to normalcy as soon as possible.”
Source: https://energynewsafrica.com
Biden To U.S. Oil Industry: Don’t Use Hurricane As Excuse For Price Gouging
Doubling down on the current U.S. administration’s previous warnings to oil and gas companies to discontinue what it considers to be their price-gouging ways, President Biden cautioned U.S. oil and gas companies against using Hurricane Ian as an excuse to engage in price gouging.
“Do not—let me repeat, do not. Do not use this as an excuse to raise gasoline prices or gouge the American people,” President Joe Biden said on Wednesday at the White House Conference on Hunger, Nutrition, and Health.
“This small temporary storm impact on oil production provides no excuse. No excuse for price increases at the pump. None. If gas companies try to use this storm to raise prices at the pump, I will ask officials to look into whether price gouging is going on,” Biden added.
Crude oil inventories dropped in the week ending September 23 by 200,000 barrels despite millions of barrels released from the nation’s Strategic Petroleum Reserve.
On top of that, oil and gas operators evacuated 12 platforms in the U.S. Gulf of Mexico, shutting in 11% of the area’s crude oil production as the area braces for Hurricane Ian—now a life-threatening Category 4 hurricane.
Nearly 10% of all gas stations in Florida were out of fuel on Wednesday, according to the head of petroleum analysis at Gas Buddy, Patrick De Haan.
The national average price for a gallon of regular-grade gasoline rose to $3.765 on Wednesday, according to AAA data—up from 3.747 on Tuesday and up from $3.681 a week ago.
Florida’s gas prices were up on Wednesday to an average of $3.396 per gallon, compared to $3.394 per gallon on Tuesday or $3.390 a week ago.
Source: https://energynewsafrica.com
Ghana: We’re Working With ECG To Resolve Prepaid Challenges –PURC
The Public Utilities Regulatory Commission (PURC) says it has noticed with concern the challenges currently being experienced in vending by ECG customers on ECash and PNS Metering System.
Many customers of ECG especially those in Volta Region, Kumasi, Accra, Takoradi, Tema, Cape Coast, Kasoa, Winneba, Swedru, Koforidua, Nkawkaw, and Tafo have been unable to purchase credit on their card.
The development has forced them to sleep in darkness for the past two days.
In a statement issued Wednesday, ECG apologized to customers and assured that its ICT team is working to assiduously correct the anomaly and restore the system to normalcy.
The technical challenges seem not to have been resolved yet as many customers are still unable to purchase credit on their card.
To ensure that ECG customers do not continue to stay in darkness, the PURC in a statement issued by its Executive Secretary, Dr. Ishmael Ackah, said the Commission is closely monitoring the situation and is in full discussion with the ECG to address the issue.
“The Commission wishes to assure all affected customers of its commitment to ensuring the delivery of a safe and reliable utility service provision and to have the issue resolved quickly,” he said.
Source: https://energynewsafrica.com
Nord Stream: Sweden Finds Fourth Leak In ’Sabotaged’ Russian Gas Pipeline
A fourth gas leak has been found on the Nord Stream pipelines EU leaders have said were deliberately sabotaged.
The Swedish coastguard said they had found the leak on Nord Stream 2, very close to a larger leak found earlier on Nord Stream 1.
It follows the discovery of three leaks earlier this week in the pipeline that carries gas from Russia to the EU.
The suspected acts of sabotage in the Baltic Sea off Sweden and Denmark are believed by defence experts to have been premeditated attacks using underwater explosives.
The EU has promised that any deliberate attack on the continent’s energy infrastructure would be met with the “strongest possible response”.
The EU previously accused Russia of using gas supplies as a weapon against the West over its support for Ukraine.
But its leaders have stopped short of accusing Russia of the suspected attacks on the pipeline.
Some European officials and energy experts said Russia is likely to blame for any sabotage as it directly benefits from higher energy prices and economic anxiety across Europe caused by supply disruption.
However, others cautioned against pointing fingers until investigators are able to determine what happened.
Russia dismissed suggestions it had attacked its own pipelines as “predictable and stupid”.
Norway – which is not in the EU -has said it would deploy its military to protect oil and gas installations.
The Nord Stream 1 pipeline – which consists of two parallel branches – has not transported any gas since late August when Russia closed it down, saying it needed maintenance.
It stretches 745 mile under the Baltic Sea from the Russian coast near St Petersburg to north-eastern Germany. Its twin pipeline, Nord Stream 2, was halted after Russia invaded Ukraine in February.
Scientists fear methane erupting from the burst pipelines into the Baltic Sea could be one of the worst natural gas leaks ever and pose significant climate risks.
Both contained natural gas which mostly consists of methane – a greenhouse gas that is the biggest cause of climate heating after carbon dioxide.
The extent of the leaks is still unclear but rough estimates by scientists, based on the volume of gas reportedly in one of the pipelines, vary between 100,000 and 350,000 tonnes of methane.
“The climate risks from the methane leak are quite large. Methane is a potent greenhouse gas, 30 times stronger than CO2 over 100 years and more than 80 times stronger over 20 years.”
It remains unclear how long the damage will make the pipelines unoperational.
Source: Evening Standard
Russia dismissed suggestions it had attacked its own pipelines as “predictable and stupid”.
Norway – which is not in the EU -has said it would deploy its military to protect oil and gas installations.
The Nord Stream 1 pipeline – which consists of two parallel branches – has not transported any gas since late August when Russia closed it down, saying it needed maintenance.
It stretches 745 mile under the Baltic Sea from the Russian coast near St Petersburg to north-eastern Germany. Its twin pipeline, Nord Stream 2, was halted after Russia invaded Ukraine in February.
Scientists fear methane erupting from the burst pipelines into the Baltic Sea could be one of the worst natural gas leaks ever and pose significant climate risks.
Both contained natural gas which mostly consists of methane – a greenhouse gas that is the biggest cause of climate heating after carbon dioxide.
The extent of the leaks is still unclear but rough estimates by scientists, based on the volume of gas reportedly in one of the pipelines, vary between 100,000 and 350,000 tonnes of methane.
“The climate risks from the methane leak are quite large. Methane is a potent greenhouse gas, 30 times stronger than CO2 over 100 years and more than 80 times stronger over 20 years.”
It remains unclear how long the damage will make the pipelines unoperational.
Source: Evening Standard Ghana: Petroleum Downstream Industry Witnessed 41 Percent Growth In 2021-Says NPA Boss
Ghana’s demand for petroleum products has increased significantly from an average of 7 to 41 percent in 2021, the Chief Executive Officer of the National Petroleum Authority (NPA) Dr. Mustapha Abdul-Hamid has said.
The unprecedented surge in consumption is as result of various technological based schemes and interventions being implemented by the downstream regulator to curb illicit fuel activities over the past few months.
Speaking at the official opening of the 5th Edition of the Ghana International Petroleum Conference (GhipCon), in Accra on Wednesday, 28 September 2022, Dr. Abdul-Hamid says the sector currently has annual sales value of GHC 32.94 billion representing a contribution of 7.2 percent to Ghana’s Domestic Gross Product (GDP).
“Africa’s petroleum downstream sector is entering a new era. As the world looks to accelerate its transition away from fossil fuels, the pressures on our industries are mounting,” he said.
“We are all exposed to the global energy transition, as our countries depend on oil and gas revenues. Ghana’s petroleum downstream industry which has an annual sales value of about GHS32.94 billion according to 2021 estimates contributes 7.2% of the country’s GDP.”
“This represents a 41% increase in demand for fossil fuels as compared to 2020. This is an unprecedented surge in consumption of fossil fuels when the annual average over the years had been between 5% and 7%,” The NPA Chief Executive added.
He emphasized that Ghana is committed to reducing the emissions from consumption of energy products.
“We at the National Petroleum Authority are committed to reducing the emissions from the energy products we consume in Ghana, and this culminated to the reduction of sulphur content in transport and industrial fuels from a maximum of 5000ppm to a maximum of 50ppm.”
“As previously mentioned, Ghana is one of the few African countries that consume low Sulphur fuels, with a roadmap for local refineries to comply,” he said.
Dr. Mustapha Hamid further charged participants at this year’s conference to deliberate on the key issues with a focus to devise strategies for deployment.
Speaking on behalf of the Energy Minister, a Deputy Minister of Energy, William Owuraku Aidoo, says Ghana remains committed to an energy transition agenda and the development of the petroleum industry.
“Ghana remains committed to both an energy transition agenda and the development of its petroleum industry, including downstream sector, we believe that the way forward is to strike an important and fair balance between the two without compromising our determination to maximize the benefits we need for our industrialization,” he said.
“I am convinced beyond measures that the conference will provide significant outcomes to guide us on the way forward, and I look forward to further engagements in this direction,” he added.
He further charged players in the West Africa Sub region to improve refinery capacity to produce high-quality fuels to reduce Green House Gas emissions.
The 3-day conference is on the theme “Energy Transition in the African Petroleum Downstream Context: Prospects, Challenges and the Way Forward”.
The conference is being organized by the National Petroleum Authority (NPA) in collaboration with the African Refiners and Distributors Association (ARDA) under the auspices of the Ministry of Energy and the Ghana Chamber of Bulk Oil Distributors (CBOD).
It has attracted major players including CEOs, experts and decision makers in the petroleum sector across the West Africa Sub Region.
Source: https://energynewsafrica.com
Ukraine Accuses Russia Of Attacking Nord Stream Pipeline
Ukraine has accused Russia of causing leaks in two major gas pipelines to Europe in what it described as a “terrorist attack”.
Ukrainian presidential adviser Mykhaylo Podolyak said the damage to Nord Stream 1 and 2 was “an act of aggression” towards the EU.
He added that Russia wanted to cause pre-winter panic and urged the EU to increase military support for Ukraine.
Seismologists reported underwater blasts before the leaks emerged.
“There is no doubt that these were explosions,” said Bjorn Lund of Sweden’s National Seismology Centre, as quoted by local media.
The operators of Nord Stream 2 warned of a loss of pressure in the pipeline on Monday afternoon. That led to a warning from Danish authorities that ships should avoid the area near the island of Bornholm.
The operator of Nord Stream 1 said the undersea lines had simultaneously sustained “unprecedented” damage in one day.
Denmark’s Defence Command has released footage of the leaks which shows bubbles at the surface of the Baltic Sea near the island.
The largest patch of sea disturbance is 1km (0.6 miles) in diameter, it says.
The gas pipelines have sustained “unprecedented” damage
“Gas leak from NS-1 [Nord Stream 1] is nothing more than a terrorist attack planned by Russia and an act of aggression towards the EU. Russia wants to destabilise the economic situation in Europe and cause pre-winter panic,” Ukraine’s Mr. Podolyak tweeted in English.
He also called on European partners, particularly Germany, to increase military support for Ukraine.
“The best response and security investment are tanks for Ukraine. Especially German ones,” he said.
Other European leaders have raised the idea that the damage to the pipelines was deliberately inflicted.
Polish Prime Minister Mateusz Morawiecki blamed it on sabotage and said it was probably linked to the war in Ukraine.
Denmark’s Prime Minister, Mette Frederiksen, said it was too early to come to conclusions, but that it was hard to imagine the multiple leaks could be a coincidence.
At the same time, unconfirmed reports in German media said authorities were not ruling out an attack on the undersea gas network.
A Kremlin spokesperson, Dmitry Peskov, said he was “extremely concerned” about the incident and the possibility of a deliberate attack could not be ruled out.
The EU has previously accused Russia of using a reduction in gas supplies as an economic weapon, in response to European sanctions imposed because of Russia’s invasion of Ukraine.
However, Moscow denies this, saying the sanctions have made it impossible to maintain the gas infrastructure properly.
Source: Reuters