Russia’s Gazprom has halted gas exports to neighbouring Finland, in the latest escalation of an energy payments dispute with Western nations.
Gazprom Export has demanded that European countries pay for Russian gas supplies in rubles because of sanctions imposed over Moscow’s invasion of Ukraine, but Finland refuses to do so.
The move by Gazprom comes at the same time as Finland is applying to join the NATO military alliance, a decision spurred by Russia’s invasion of Ukraine.
“Gas imports through Imatra entry point have been stopped,” Finnish gas system operator Gasgrid Finland said in a statement on Saturday.
Imatra is the entry point for Russian gas into Finland.
Finnish state-owned gas wholesaler Gasum on Friday said Gazprom had warned that flows would be halted from 0400 GMT on Saturday morning.
Gasum and Gazprom also confirmed on Saturday the flows had stopped.
“Natural gas supplies to Finland under Gasum’s supply contract have been cut off,” Gasum said in a statement.
“Starting from today, during the upcoming summer season, Gasum will supply natural gas to its customers from other sources through the Balticconnector pipeline.”
Balticconnector links Finland to neighbouring Estonia’s gas grid.
Gazprom Export on Friday said flows would be cut because Gasum had not complied with the new Russian rules requiring settlement in rubles.
The majority of gas used in Finland comes from Russia but gas only accounts for about 5% of its annual energy consumption.
Most European supply contracts are denominated in euros or dollars and Moscow already cut off gas to Bulgaria and Poland last month after they refused to comply with the new payment terms.
Gasum, the Finnish government and individual gas consuming companies in Finland have said they were prepared for a shutdown of Russian flows and that the country will manage without.
“The Finnish gas system is in balance both physically and commercially,” Gasgrid said on Saturday.
Finland on Friday said it had agreed to charter a storage and regasification vessel from U.S. based Excelerate Energy (EE.N) to help replace Russian supplies, starting in the fourth quarter this year.
The vessel turns supercooled, liquefied natural gas (LNG), which arrives on ships, back into regular gas.
Source: Reuters
Diesel prices have gone up astronomically to almost Gh¢12 (US$1.52) in the Republic of Ghana, West Africa.
As of Thursday, almost all the leading and smaller oil marketing companies have adjusted their diesel prices upward.
GOIL, the market leader, adjusted the price of diesel from Gh¢11.20 per litre to Gh¢11.69 per litre, representing a 40 pesewas increment.
TotalEnergies and Shell also adjusted their diesel prices to Gh¢11.90 per litre while Star Oil and Gaso are selling at Gh¢11.99 per litre.
The upward review of diesel prices is in response to the rising cost of the commodity on the global market.
Diesel price has been soaring as a result of the Russian invasion of Ukraine and the high demand for the commodity.
As of 18th May 2022, the price of diesel was sold at US$1,038.13 per metric tonne.
It was sold at US$1,066.25 per metric tonne previously.
Meanwhile, petrol price remains at below Gh¢10 pesewas per litre.
Source: https://energynewsafrica.com
The Ghana National Petroleum Corporation, (GNPC) was nearly closed down by ex- Ghanaian President John Agyekum Kufuor over the poor state of the corporation, a former Chief Executive Officer of the corporation has told energynewsafrica.com.
Dr. Amos Ofori Quaah, the CEO of the Corporation between 2001 and 2002 during the Kufuor administration, told energynewsafrica.com in an exclusive interview that when the New Patriotic Party (NPP), led by John Agyekum Kufuor, won power from the NDC administration in 2001, the corporation was in a sordid state.
He said at that time, the corporation had strayed from its core mandate and ventured into non-core business which was not yielding any positive returns.
Besides the wasteful venture the corporation had ventured into, Dr Ofori Quaah revealed that the corporation was overstaffed with a workforce of about 972 people.
Touching on how he stopped the former Ghanaian leader from closing down GNPC, Dr Amos Ofori Quaah said upon hearing the intention of the government, he discussed it with a friend who later introduced him to Mr Kan Dapaah, the then Minister designate for Energy.
“So I met the Minister and told him that we were close to finding oil so we cannot close down the corporation,” Dr Ofori Quaah told this portal, adding that “what I agreed to do to save the corporation was cutting down the workforce drastically.”
He said he took the unpleasant decision by cutting down the workforce from 972 to about 70 and refocused the Corporation to its core mandate of finding oil for the country.
Dr Quaah, who started his job with the Corporation in 1985, said he restructured the organisation including setting up the exploration and production department which worked tirelessly leading to Ghana finding oil in commercial quantities in 2007.
Source: https://energynewsafrica.com
Sierra Leone has launched the country’s 5th Petroleum Licensing Round in London, United Kingdom.
In total, 63,643km2 of offshore acreage is up for grab across 56 graticular blocks of some 1,360km2 each.
A contract area is formed with a minimum of three graticular blocks.
The Licensing Round will remain open until September 30, 2022.
It notably follows several announcements related to exploration offshore Sierra Leone earlier this month.
On May 10, Wildcat Petroleum announced it was granted non-exclusive right over 20 blocks offshore Sierra Leone where it will carry out a desktop study using geophysical and geological data.
Last week, Innoson Oil & Gas also revealed the results of a third-party evaluation of its concession in the country by Ryder Scott Co, estimating up to 8.2 Tcf of gas and 234m barrels of condensate of P50 estimated un-risked gross prospective recoverable resources there.
Sierra Leone has already shown oil deposits during previous exploration campaigns led by Anadarko, Repsol and Tullow Oil.
These notably resulted in a few discoveries, though uncommercial ones.
They include Venus B-1, Mercury-1, and Jupiter-1 by Anadarko in 2009, 2010, and 2012, and Savannah-1X by Lukoil in 2013.
Source: https://energynewsafrica.com
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO), who have had a long, mutually beneficial relationship, have signed an agreement for the joint establishment of an African Energy Bank at the 8th African Petroleum Congress and Exhibition (CAPE VIII) in Luanda, Angola.
The agreement was signed by Rene Awambeng, Director and Global Head Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of H.E. João Manuel Gonҫalves Lourenҫo, President of the Republic of Angola, and APPO Ministers.
All the parties involved were concerned about challenges faced by Africa’s oil and gas industry and the continent’s economic development, and all parties acknowledge the impact of climate change on the continent and the need for a just transition in line with the United Nations Sustainable Development Goals and the African Union Agenda 2063.
“As we address the energy transition challenges facing the world and Africa, we should be mindful of the fact that Africa still needs to rely on its natural resources, including oil and gas, for its future development. Through this new venture, Afreximbank and APPO are working towards achieving this vision,” Rene Awambeng, Director and Global Head Client Relations, Afreximbank said at the signing ceremony.
In line with the agreement, the two institutions have resolved to work together to find an African-led solution to combat the threat presented to the African oil and gas industry, brought on by the coordinated withdrawal of international trade and project financing, and have committed to taking necessary steps to find a solution to this challenge.
“The new bank will deal with the vacuum created by the withdrawal of international banks from the financing of oil and gas projects in Africa,” stated Awambeng, adding that, “It will be an African-led solution to address the threat posed to the African oil and gas industry from the shortages of funding. This will be a balanced solution with the goal of preserving both the environment and livelihoods.”
Source: https://energynewsafrica.com
Libyan prime minister-designate Fathi Bashagha was forced out of the capital Tripoli on Tuesday by armed militias backed by current interim Prime Minister Adbdul Hamid Dbeibah, who refuses to step down and cede power as a significant amount of the country’s oil production capacity remains shut-in.
Armed clashes shook Tripoli on Tuesday as Bashagha, backed by the eastern-based parliament, entered the capital to assume power from Dbeibah, forcing the prime minister-designate to leave the city only hours after entering.
Clashes erupted when Bashagha entered the city with militia forces, prompting a response from Dbeibah’s militias.
One staff member of the Italian embassy was wounded during the clashes.
The rival prime ministers blame each other for starting the clashes, with Bashagha calling the Dbeibah government “hysterical”.
“Despite our peaceful entry to Tripoli, without use of violence and force of arms, and our reception by honorable people of Tripoli, we were surprised by dangerous military escalation carried out by armed groups affiliated with the outgoing government,” Bashagha tweeted.
“We are not seeking authority, but rather determined to build democratic civil state with elected authority, state governed by law, not governed by logic of violence and chaos sponsored by the outgoing government,” the new Prime Minister added.
The United Nations and the United States have urged calm.
“We urge all armed groups to refrain from violence and for political leaders to recognize that seizing or retaining power through violence will only hurt the people of Libya,” the U.S. Embassy in Libya said in a statement.
Some 600,000 bpd of Libyan oil production remains shut-in due to rivalry between Bashagha and Dbeibah over the distribution of oil revenues.
The Libyan National OIl Company (NOC) was forced in mid-April to declare force majeure on two oilfields, including its largest–Al Sharara–as well as on key export terminals. Libyan production is now hovering around 80,000 bpd.
Bashagha holds the key to resuming oil production. However, with no agreements forthcoming over oil revenues, without taking Tripoli and controlling the central bank, the prime minister-designate cannot force a new revenue distribution setup.
Source: Oilprice.com
Ghana’s Ministry of Energy’s Petroleum Directorate is now being headed by Mr. James Dwamena Yamoah, energynewsafrica.com can confirm.
He replaced Mr. Benjamin Asante who retired from the Ministry in April 2022.
Prior to moving to the Ministry of Energy, Mr. James Yamoah was the General Manager in charge of Health Safety and Environment at the West African nation’s national company, Ghana National Petroleum Corporation (GNPC).
He served in various capacities at GNPC including serving as the Chief Operating Officer, Team Lead, Senior Exploration Geologist and Operations Geologist.
He has over a decade experience in Petroleum Geology and Project Management.
Source: https://energynewsafrica.com
Nine people have been killed while 10 others were also severely injured, after a gas cylinder explosion in the Sabon Gari area of Kano State in the Federal Republic of Nigeria.
The unfortunate incident happened on Tuesday morning at a welder’s shop close to a nursery and primary school.
A statement issued by the National Emergency Management Agency (NEMA) confirming the incident, said: “The death toll in the gas explosion which occurred at Aba Road in Sabon Gari of Fagge Local Government Area, Kano, has increased to nine.
“Nine dead bodies were recovered from a collapsed building affected by the explosion and have been deposited at the mortuary at Armed Forces Specialist Hospital, Kano.”
It continued: “Ten persons were injured and were taken to various hospitals out of which two have been discharged.”
The statement added that the Director-General of NEMA, Mr. Mustapha Habib, “led the rescue team and excavators were mobilised to ensure removal of trapped victims.
“NEMA rescue team was at the site of the incident to investigate and ascertain the impact of the explosion.”
NEMA also stated that the rescue operations, which commenced by 10 a.m and officially closed at about 5:15 p.m, were well-coordinated, and urged the general public, particularly those living in the affected area, to remain calm and warned against spreading fake news.
Vice-President Yemi Osinbajo visited the explosion scene on Tuesday to commiserate with the families of the victims.
His Excellency Yemi Osibanjo ( 3rd left ), Vice President of Nigeria being briefed at the scene of the gas cylinder explosion
“We are here to first find out for ourselves what has happened and then also, commiserate with residents here and the families who lost some members and had children who were injured,” he said.
“I’m told that this was a blast and nine in all died as a result of the incident.
“This is a very, very sad and very unfortunate development, and just to say how deeply regrettable this is,’’ he stated.
Also, present during the visit were Abdullahi Ganduje, Governor of Kano; Nasiru Gawuna, Deputy Governor of the state, as well as security operatives and officials of the National Emergency Management Agency (NEMA).
Reacting to the explosion yesterday, former Vice President, Alhaji Atiku Abubakar commiserated with the victims.
In a statement signed by the Director of Media and Publicity, Atiku Care Foundation (ACF), Okpani Jacob Onjewu Dickson, the Director-General of ACF, Ambassador Aliyu Bin Abbas, said Atiku, who is a presidential aspirant on the platform of the Peoples Democratic Party (PD), was deeply saddened over the explosion.
“Alhaji Atiku Abubakar was saddened by the development and has tasked relevant agencies to investigate the remote and immediate causes to forestall future occurrence.
“He commiserates with the government and people of Kano State, families that were affected and wished the injured speedy recovery.
“He has also tasked me to direct the Kano State Chapter of Atiku Care Foundation to furnish his office details of those affected, to see those that might need assistance,” Ambassador Abbas said.
Source: https://energynewsafrica.com
The Chief Executive of the National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, has been named among the top 50 public sector leaders on the African continent.
Dr. Abdul-Hamid got the coveted award on Friday, May 13, 2022, at the third edition of the Africa Public Sector Conference & Awards (APSCA) ceremony.
The award night celebrated and recognised outstanding state-owned organisations, public sector agencies, ministries and leaders demonstrating excellence in leadership, policy innovations, service delivery, inspiring innovations and individuals raising the benchmark of excellence that leaded to socio-economic growth across Africa.
This year’s awards ceremony was held in Accra and saw 50 CEOs from the public sector across the continent being honoured.
The NPA boss expressed gratitude to the organiser’s and promised to even play a more pivotal role in positioning the Authority as a trailblazer in the downstream sector.
Source: https://energynewsafrica.com
The biggest holdout to an EU embargo on Russian oil imports, Hungary, continues to dig its heels in, and has told the other European Union members it would need at least $811 million (770 million euro) to prepare its refineries and pipelines for ditching Russian oil, Bloomberg reported on Tuesday, citing documents it has reviewed and sources with knowledge of the discussions.
In early May, the European Commission officially proposed a full ban on Russian crude and oil product imports, to come into effect by the end of the year.
But the EU is still scrambling to find a common position, trying to persuade Hungary and some other central and eastern European countries to drop their opposition to an embargo.
Hungarian Prime Minister Viktor Orban held close ties with Putin before the Russian invasion of Ukraine—is the biggest opponent to an EU embargo on Russian oil imports, and has said it would need hundreds of millions of dollars to adapt its refining and pipeline industry in order to accommodate a stop to Russian oil imports.
Orban has said that an oil ban would be like “dropping a nuclear bomb on the Hungarian economy”, while Hungarian Foreign Minister Peter Szijjarto said last week that it would not drop its opposition to a Russian embargo unless it receives hundreds of millions of dollars, necessary to replace Russian oil.
Hungary also wants pipeline oil imports to be exempted from the ban.
The Hungarian opposition to an embargo continued this week. At a meeting on Monday, the foreign ministers of the EU failed to persuade Hungary to drop its veto on an embargo.
Lithuania said that the EU is being “held hostage by one member state,” commenting on the failed talks.
Diplomats now hope that an EU summit on May 30 and 31 could reach a unanimous decision on a ban on Russian oil, to be phased out over six months and with exemptions for central European countries, including Hungary, Slovakia, and the Czech Republic.
The Electricity Company of Ghana’s (ECG) indebtedness to the Independent Power Producers (IPPs) in the Republic of Ghana has ballooned to $900 million as of the end of the first quarter of this year.
This was revealed by the Chief Executive Officer of the Chamber of Independent Power Producers, Distributors and Bulk Consumers (CiPDiB) in a statement presented at the public hearing on the Multi-Year Major Tariff Review in Accra.
Commenting on ECG’s proposal requesting a 148 per cent increment in Distribution Service Charge, Dr. Elipklim Apetorgbor, CEO of the Chamber, argued that ECG does not have any moral right to ask for that level of increment.
“You are heavily indebted and have not paid your generators. As of the end of the first quarter of 2022, you owed us almost $900 million in power supply invoices only, excluding other legitimate claims. It is wiser to continue making the effort to retrieve those difficult debts, no matter how small per time than writing off GHS 625million debts of your customers.”
Dr. Apetorgbor said it is baffling for ECG to be asking for an increment when the 2020 State Ownership Report revealed that ECG, the Volta River Authority and other energy-related institutions have made a profit.
Dr. Apetorgbor said for them to declare profit in the provision of constitutionally mandated service to the public is a deviation from the core mandate and rather competing with the private utilities service providers, adding, “and this is expected to result in tariff reduction to make the electricity tariff in Ghana competitive and not to seek for an increase in tariff.
“You recalled that the GoG/MoF laid claims in the recent past, via the mid-year budget review to the fact that the ECG/GoG is debt-ridden because of taking or paying PPAs. GoG’s subsequent notice of the application to the public in February this year revealed that it has made savings of $13.2 billion through the renegotiation efforts and also that the Average Cost of Generation for the IPPs has declined to 16.2 cents/kWh –10.5 cents/kWh. If these claimed savings are true and real, it should be good news to the sector revenue requirement and most importantly inure to the benefit of ECG. Indirectly, this should shore up ECG’s revenue and there should be no justification to increase tariff for ECG to make excess revenue,” Dr. Apetorgbor said.
He challenged the ECG in particular that if it claimed to make a profit, then it means it has excess revenue that it has achieved via efficiency, technologically and commercially.
This, he believes will result in tariff reduction to make the electricity tariff in Ghana competitive and not to seek an increase in tariff.
Source: https://energynewsafrica.com
The Executive Secretary of the Energy Commission, Rev Ing Oscar Amonoo-Neizer, has been honoured as one of the top African Public Sector Leaders.
Rev. Ing Oscar Amonoo-Neizer was honoured alongside 49 other top African Public Sector Leaders at the 3rd Africa Public Sector Conference And Awards 2022, which took place at the Kempinski Hotel in Accra last Friday.
Apart from the Executive Secretary being honoured at the ceremony, the Energy Commission, which he heads, also received an award for having the best public sector web portal (Website of the year).
The Africa Public Sector Conference and Award which is organised by Instinctwave celebrates and recognises outstanding state-owned organisations, public sector agencies, ministries and leaders demonstrating excellence in leadership, policy innovation, service delivery, inspiring innovations and individuals raising the benchmark of excellence that leads to socio-economic growth across Africa.
Commenting on the awards, the Head of Public Affairs at the Commission, Linda Ethel Mensah said the Energy Commission is grateful for yet another validation of its achievements as a Regulator in the energy sector over the last 25 years.
Source: https://energynewsafrica.com
As global pressures mount to transition to cleaner sources of fuel, Africa continues to struggle with high energy poverty and slow rates of economic growth.
To mitigate this, and correspondingly reduce carbon emissions, Africa is committed to utilizing every energy resource at the continent’s disposal, and natural gas has emerged as the most suitable.
In regard, speakers during a panel at the Malabo Business Breakfast discussed energy transition, energy poverty and gas monetization.
Under the theme, Gas Monetization in Africa and Energy Poverty, speakers included Oscar Garcia Berniko, Director of State Entities, Ministry of Mines and Hydrocarbons, Equatorial Guinea; Antonio Oburu Ondo, CEO, Gepetrol; Abdur Tunde Omidiya, Midiya; Managing Director, QSOL; Justino Evuna Akogo; Deputy Commercial Director EG LNG; and Fidel Nzeng Envo; Vice President, Kosmos Equatorial Guinea.
As Equatorial Guinea progresses with its national development plan to capture domestic and regional gas reserves, processing these reserves and then distributing them across Africa, the speakers emphasized the progress made as well as the role gas-to-power will play in electrifying Africa.
According to Berniko, “If you look at Africa, there are great gas opportunities that can be used for production through power plants to turn gas into electricity. Equatorial Guinea has about 67% energy access. We have done a great job since 2012 and the turbo gas plant has added to this and has developed the use of natural gas for local consumption.”
With gas-to-power playing a role in addressing energy poverty in Africa, the panel discussed the intersection of energy poverty and energy transition, emphasizing that Africa needs to prioritize economic development before the continent transitions to renewables.
“If you look at energy poverty globally, you can see that the energy access and security in Africa is the least in the world. More importantly, Africa is a major gas exporter. Why is Africa still having energy poverty while gas is being flared?,” stated Omidiya, adding that, “We should use all forms of energy to meet our demand in Africa. We need to do more to develop our gas networks. There are ways to bring in LNG technology and move LNG by road. It is time to look at the African Continental Free Trade Agreement and capitalize on the gas mega hub, bringing gas onshore and distributing it across Africa. Gas to power is industrialization; it is more than generating electricity. It is used in steel, cement and fertilizer industries. It is the best low carbon source. In a few years we will not be talking so much about net-zero and decarbonization, we will be talking about low carbon energy sources like gas.”
“Climate change in conjunction with the reduction in carbon footprint is a crucial issue in the industry right now. The energy transition is real, but we have to note a few things. USA, EU and other developed countries produce 91% of carbon emissions. Forty-eight countries in sub-Saharan Africa produce around 1.5% of emissions. We need to get our economy to a certain level. The only way to do this is to get the resources from oil and gas. We cannot say that Africa needs to put aside the oil and gas resources. It does not make sense, where will we get the money for solar panels and to finance really expensive renewable projects? Gas is clean energy so let’s develop this,” stated Envo.
In strengthening the role and utilization of gas in Africa, there are a number of challenges that need to be addressed and steps that need to be taken. Specifically, implementing integrated tools, improving ease of doing business and introducing regulatory reforms will be critical.
“African countries need an integrated tool in the energy plan. The role of this tool is quantifying the points and locations that need energy. Then apply the necessary scale of natural gas projects to these points. Without this national tool, energy poverty will continue being a problem,” stated Ondo.
“Our development plans for the time being are dependent on our natural resources. It is integrated in our economy. It also gives us social and political stability. Our problem in Africa is not to start the energy transition but to see how to eliminate energy poverty,” Akogo noted.
“Because of the current regulations in terms of banking, international companies are forced to use local/CEMAC banking systems, this is very challenging. To get future investments into Equatorial Guinea, our local banks need to move with the times and develop their banking systems to suit the needs of their customers. The financial services sector needs to improve its communication and banking services, this is especially critical for the hydrocarbon sector where we are planning to increase hydrocarbon use and we need to negotiate contracts and sign agreements, all of which rely heavily on the financial sector,” Envo said.
“The challenges posed by BEAC Forex that is destroying SMEs in the region has made CEMAC region unattractive for foreign direct investments. Most of the players agreed that something urgent must be done to find a solution to said problem” Stated Leoncio Amada Nze, president at African Energy Chamber CEMAC
“Pragmatic and market driven, Local content rules need to be encouraged to create local and regional champions that would help create jobs and boost the regional economy” Continue Amada Nze.
“Now more than ever, we need to find ways to involve local and regional banks in big oil projects by putting together partnerships with western banks that are already embedded in IOCs financing schemes. We can’t continue the process of leaving African financial institutions out of deals”, Concluded Amada Nze.
Source: https://energynewsafrica.com
ZEN Petroleum, a wholly-owned Ghanaian Oil Marketing Company (OMC), has been named one of the 75 Fastest Growing Companies in Africa for 2022 by the UK-based Financial Times.
According to the FT ranking, the Ghanaian energy company recorded an absolute growth rate of 159.6 per cent, while its Compound Annual Growth Rate (CAGR) stood at 37.4 per cent against the 7.99 per cent minimum CAGR required to be included in this year’s ranking.
For its sterling performance, the inaugural Financial Times (FT) ranked ZEN Petroleum at the 28th position as Africa’s Fastest-Growing Company.
The ranking provides a snapshot of the corporate landscape on a continent where technology, fintech and support-service businesses have had to adapt to a radically altered environment.
The inaugural FT list was compiled with Statista, a research company, and ranks African companies by their CAGR in revenue, between 2017 and 2020.
One of the areas ZEN Petroleum ranked high is strong revenue performance.
The company recorded significant revenues of $418.8 million in 2020 compared with $207.5 million in 2017.
The ranking lists 75 companies, ordered by the highest CAGR in revenues between 2017 and 2020, based on the criteria including revenue of at least $100,000 generated in 2017; revenue of at least $1.5 million generated in 2020; being an independent company (not a subsidiary or branch office of any kind), and a company with operational headquarters located in one of the African countries.
The calculation of company growth rates is based on the revenue figures submitted by the companies in their respective national currencies.
The revenue figures were then converted into US dollars for better comparability in the ranking.
According to the FT ranking, the average exchange rate for the financial year indicated by the company was used for this purpose.
Selection Criteria
The project was advertised online and in print, allowing all eligible companies to register online via Statista or the Financial Times between October 6, 2021, and February 15, 2022.
The process required that companies submitted revenue figures to be certified by the chief executive, chief financial officer or an executive committee member of the company.
Following the application phase, Statista examined the officially stated revenue data of about 900 public companies in Africa.
High-profile companies that met the criteria for inclusion were added to the list (27 in total).
The data was collected through research, using official sources such as publicly available earning presentations, investor relations websites, or annual reports.
Source: https://energynewsafrica.com