Ghana: Collect More Revenue To Settle ECG’s US$900M Debts-IPPs To New ECG MD
The Chamber of Independent Power Producers, Distributors and Bulk Consumers (CiPDIB) has congratulated the newly appointed Managing Director of the Electricity Company of Ghana, Samuel Dubik Masubir Mahama.
Samuel Mahama was appointed in May 2022 to replace Kwame Agyeman-Budu after the latter had retired.
Before his appointment, Mr Samuel Mahama was a member of ECG’s Board.
In a statement issued by the CEO of the chamber, Dr Elikplim Kwabla Apetorgbor said: “We expect that you will build on the healthy relationship you had developed with the IPPs in your capacity as the Chairman of the Energy Trading Committee of ECG Board.
“You are helming the affairs of ECG at the time ECG’s sustainability is saddled with debts to the IPPs worth US$900 million.
“We appreciate the Cash Waterfall Mechanism (CWM) fair allocation platform but it starves us of revenue and has not lived up to the ultimate revenue allocation expectation to meet our obligations,” the statement said.
“While we look up anxiously to you to collect more revenue and make good this debt in good time, we wish you the very best and pledge, cooperation and willingness and offer suggestions for your success because your success is our success,” the statement concluded.
Source: https://energynewsafrica.com
Ghana: Minority Demands Parliamentary Approval Of US$35M Contract For Ameri Power Plant Relocation
The Minority Group in Ghana’s Parliament is demanding that the contract to relocate the Ameri Power Plant from Aboadze in the Western Region of Ghana to Kumasi in the Ashanti Region be sent to the House for approval.
According to them, contracts with international companies must go to Parliament first, claiming that the government is trying to sidestep the law.
The Government of Ghana, last year, announced the decision to relocate the Ameri Power Plant to the Ashanti Region to help stabilise the country’s national electricity grid.
The relocation is expected to cost the Ghanaian taxpayers some US$35 million.
Commenting on the relocation of the Ameri Plant in an interview with a section of the Ghanaian media, Ranking Member on the Mines and Energy Committee of Parliament and Member of Parliament for the Yapei Kusawgu Constituency, John Jinapor, served notice to the government that Minority would continue to resist the deal.
“They confirmed that they had entered into an agreement with Mytilineous company for pre-financing. The project will cost about $35 million. And they have even forwarded the contract to the Attorney-General so they can execute the contract.”
“More importantly, this company is an international company, and by Article 181(5) of the Constitution, such international agreements must even be brought to Parliament. This Nicodemus attempt to sign this contract will not be countenanced,” he added.
Source: https://energynewsafrica.com
Ghana: Diesel Price Jumps To Nearly Gh¢15, Petrol Gh¢12 Per Litre
Prices of fuel have shot up astronomically in the Republic of Ghana
As at 14:00 GMT Friday, 1 July,2022, TotalEnergies, one of the leading oil marketing companies took the lead to adjust its pump with petrol selling at Gh¢11.59(US$1.41) per litre while diesel went up to Gh¢14.59 (US$1.78)per litre.
During the second pricing window which ended Thursday, 30th June, 2022, TotalEnergies sold petrol at Gh¢10.99 per litre and diesel at Gh¢13.50 per litre.
The leading oil marketing company, GOIL is selling Super XP at Gh¢11.41 per litre and petrol XP is sold Gh¢13.91 per litre.
Interestingly, Shell, one of the big players in the petroleum downstream is also selling at the same pump prices GOIL is selling for both Diesel and Petrol.
Star Oil is selling petrol at Gh¢10.99 per litre while diesel is going for Gh1¢13.79 per litre.
Allied is selling petrol at Gh¢11.30 per litre and diesel is going for Gh¢13.70 per litre while Alinco is selling petrol at Gh¢11.38 and selling at Ghs13.85 per litre.
As at Tuesday morning, West Texas Intermediate (WTI) was trading at US$ 110.1 while Brent traded at US$113.4 per barrel.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Oil Prices Jump As OPEC+ Confirms 648,000 Bpd Production Hike
The OPEC+ meeting ended in a relatively quick fashion on Thursday, agreeing to boost production by 648,000 bpd in August, according to Energy Intel’s Chief OPEC Correspondent, Amena Bakr.
The Joint Ministerial Monitoring Committee meeting (JMMC), which began at 13:00 Vienna time (7:30 a.m. ET), was followed by the full OPEC+ ministerial meeting. The latter was not expected to offer any surprise, with the majority of analysts predicting that the group would rubberstamp the quota increase that it had previously set for August of 648,000 bpd.
At that increase, the quota—set two years ago—would be completely rolled back.
This would free up some of its members that have spare capacity to boost production in September if they choose, although the lack of compliance with the current quotas suggests that any ramp-up in production to meet August’s quota—and beyond—is doubtful.
While it’s clear that the production cuts will officially be completely rolled back as of August, the OPEC+ group has signaled that it intends to stick together to provide support to the market, with consistent signals coming from the group over the last couple of months that the alliance with Russia would continue. Four OPEC+ delegates told Reuters, however, that today’s meeting would not include discussions about September’s production plans. Two others said that the topic of September production could come up.
OPEC is set to hold its next meeting on August 3, which will determine September production plans, Bakr said in a tweet following the meeting.
The group’s first in-person meeting since the pandemic is scheduled for the first week of December.
Oil prices were slightly higher on Thursday minutes after the meeting, with Brent crude trading at $116.00 (-0.22%).
Source:Oilprice.com
Ghana: Special Prosecutor Petitioned To Investigate TOR Over Sale Of 260,000 Litres Of Slop Oil To Unlicensed Companies
The Managing Editor for energynewsafrica.com, Michael Creg Afful, has petitioned the Special Prosecutor of the Republic of Ghana to investigate the Tema Oil Refinery (TOR) for selling 260,000 litres of slop oil to two unlicensed companies.
Sections 11(1) and (2) of the NPA Act, Act 691 stipulates that: A person shall not engage in a business or commercial activity in the downstream industry unless that person has been granted a licence for that purpose by the Board. The business or commercial activities of the downstream industry in respect of crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum products are: (a) Importation, (b) Exportation, (c) Re-exportation, (d) Shipment, (e) Transportation, (f) Processing (g) Refining, (h) Storage, (i) Distribution, (j) Marketing, and (k) Sale.
However, TOR, for some reasons best known to them, sold 260 Metric Tonnes equivalent to 260,000 to K-Moy Ghana Limited and Petro XP Ghana Limited which are not licensed to engage in the downstream petroleum business.
Documents available to energynewsafrica.com showed that on 4th May 2022, TOR sold a total of 260 Metric Tonnes (260,000) of slop oil in their storage tank to K-Moy Ghana Limited and Petro XP Ghana Limited on a cash and carry basis. Each received 130 metric tonnes of slop oil.
However, industry experts say the product can be blended with crude and refined for maximum profit instead of selling it cheaply.
Attached Is The Petition:
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Kenya: KenGen Installs A Charging Station For Electric Vehicles In Nairobi
Kenya’s electricity generating company, KenGen, is installing a charging station for electric vehicles in the capital Nairobi.
The initiative contributes to the energy transition in the East African country.
The facility will power the electric batteries of at least 50,000 buses and two million motorbikes.
“E-mobility is the fastest way for Kenya to make its energy transition like many other countries. It is also a key element in reducing pollution by promoting the use of vehicles that will reduce reliance on diesel and petrol,” Rebecca Miano, KenGen’s Managing Director said.
With an installed capacity of 1,817 MW, KenGen is Kenya’s largest power producer.
The company, which is 70% owned by the Kenyan government, has just commissioned unit 6 of the 83.3 MWe Olkaria geothermal power plant in Nakuru County in the west of the country.
The plant contributes to the diversification of the East African country’s electricity mix as electric vehicle drivers look to clean and affordable energy.
In Kenya, several companies are working to develop green mobility.
This is the case of start-ups Opibus and BasiGo, which are currently positioning themselves on the electric vehicle market.
Last March, BasiGo put on the road in Nairobi electric buses assembled locally from parts obtained from the Chinese electric vehicle manufacturer Build Your Dreams Automotive (BYD).
The vehicles are already in service in Eastlands in south-east Nairobi, as well as in the city centre and Jomo Kenyatta International Airport.
G7 Agrees To Study Russian Energy Price Caps, Raise $5 Bln To Tackle Hunger
G7 leaders have agreed to study placing global price caps on imports of Russian energy to curb Moscow’s ability to fund its invasion of Ukraine and to contribute up to $5 billion to address global food insecurity, officials said on Tuesday.
The war in Ukraine and its dramatic economic fallout, in particular soaring food and energy inflation, has dominated this year’s summit of the group of rich democracies at a castle resort in the Bavarian Alps.
The European Union will explore with international partners ways to curb Russian energy prices, including the feasibility of introducing temporary import price caps, a section of the final G7 communique seen by Reuters said. The officials said this meant both oil and gas.
The G7 has been debating price caps as a way to prevent Moscow profiting from its invasion of Ukraine, which has sharply raised energy prices, cushioning the impact of Western moves to reduce imports of Russian oil and gas.
Russian oil export revenues climbed in May even though export volumes fell, the International Energy Agency said in its June monthly report.
A cap on the price other countries pay Russia for oil would squeeze Russian President Vladimir Putin’s “resources that he has to wage war and secondly increase stability and the security of supply in global oil markets”, a senior U.S. administration official said on Tuesday.
The idea is to tie financial services, insurance and the shipping of oil cargoes to a cap on Russian oil prices. So if a shipper or importer wanted these services, they would have to commit to the Russian oil being sold for a set maximum price.
Italy, whose economy is reliant on Russian energy, pushed to extend the price cap to gas.
Italian Prime Minister Mario Draghi last week warned of the need to tackle energy prices to contain inflation and said the main objection to a gas cap from fellow Europeans was fear it could lead Russia to reduce supplies further.
France has said the price cap mechanism should extend beyond Russian products to reduce prices more broadly, including for the G7 nations that are looking to source energy from elsewhere.
France supports the language in the final communique but it remains unclear how such a mechanism would work and needs “thorough” discussions, a French official said.
G7 leaders have also agreed to push for a ban on imports of Russian gold as part of efforts to tighten the sanctions squeeze on Moscow, an EU official said on Tuesday.
Britain, the United States, Japan and Canada agreed at the start of the G7 summit on Sunday that they would ban imports of newly mined or refined Russian gold, while the European Union expressed some reservations.
Ghanaians Stage 2 Days’ Protests Against Hikes In Fuel Prices, Economic Hardships
Hundreds of Ghanaians hit the streets of Ghana’s capital Accra on Tuesday and Wednesday to protest the rising cost of fuel, which, they claim, has resulted in hikes in goods and services, thus making life unbearable.
The protesters included political activists, traders, drivers, teachers and students.
The protesters marched through the principal streets of Accra, resulting in heavy vehicular traffic during the two days.
The protesters came under one umbrella body: ‘Arise Ghana’.
What was supposed to be a peaceful demonstration to express their concerns, somehow, turned chaotic on Tuesday amidst the firing of tear gas and the pelting of stones by the protesters.
In the process, the Ghana Police Service, in a statement said 12 of its officers and some protesters were wounded.
A total of 29 protestors were subsequently arrested for their roles in the attack on the police and the vandalising of police vehicles, the police statement said.
Reacting to the protest on Accra-based Joy FM, Ghana’s Information Minister, Kojo Oppong Nkrumah, noted that there was a deliberate attempt by some individuals to destabilise the country.
“We don’t need to mince words about it. There is a trajectory-first, there was a group that wanted to demonstrate with weapons.
“Then, there was this group that said they wanted to demonstrate at night or to demonstrate from the evening throughout the night till the next morning. The police raised obvious security questions that it will be difficult,” he said.
The Ofoase-Ayirebi legislator noted that but for the interventions by the police, other similar protests could have landed the country in a state of insecurity, considering how the ‘Arise Ghana’ demonstrators behaved on Tuesday, June 28.
“This [Arise Ghana demo] is even daytime, broad daylight at the Obra Spot here in Accra–we have people attacking police officers in this manner. Can you imagine what would have happened at night if indeed some of these things were allowed to continue throughout the night?” he quizzed.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Ghana: TOR Exposed Over Shady Sale Of 260,000 Litres Of Slop Oil To Unlicensed Companies
A painstaking investigation by energynewsafrica.com has uncovered shady transactions between state-owned Tema Oil Refinery (TOR) and two entities that do not have the required license to operate in the petroleum downstream industry.
Documents available to energynewsafrica.com showed that on 4th May 2022, TOR sold a total of 260Metric Tonnes (260,000) of slop oil in their storage tank to K-Moy Ghana Limited and Petro XP Ghana Limited on a cash and carry basis where each received 130 metric tonnes.
However, industry experts say the product can be blended with crude and refined for maximum profit instead of selling it cheaply.
To unravel the crooked trade, energynewsafrica.com called Charles Awuah, General Manager (GM) Commerce of TOR, who is a signatory to the sale document, on the telephone, about the transaction and scheduled a meeting.
In his office on Monday, 30th May 2022, Mr. Awuah, in the company of three other staff members, hosted energynewsafrica.com which produced a letter to its hosts to prove their shady sale of the 260MT slop oil to the two unlicensed companies.
Immediately Mr. Awuah sighted the letter of proof, he requested energynewsafrica.com to officially write to TOR on the matter.
On 7th June 2022, energynewsafrica.com emailed an official letter to TOR, captioned: ‘Sale of Slop’.
The letter was subsequently copied to Mr Awuah via WhatsApp, and he acknowledged receipt.
After several days of waiting for official written responses to queries in the letter, a telephone call came from a lady who introduced herself as Matilda Adjoah Frempah from the Public Affairs Department of Tema Oil Refinery, explained to this portal that the stock it was investigating was a waste product.
Energynewsafrica.com requested her (Matilda) to put her response in writing to make it official but that has never been done.
A check by energynewsafrica.com at the Registrar-General’s Department showed that Martha Osei-Yeboah and Kwabena Osei-Yeboah are Directors of K-Moy Ghana Limited.
However, the Registrar-General’s Department data has no such name as Petro XP Ghana Limited. That means Petro XP Ghana Limited is not a registered entity.
The portal’s further checks at the National Petroleum Authority (NPA), Accra, were evident that neither of the companies-K-Moy Ghana Limited and Petro XP Ghana Limited-had registered with the Authority to do oil business in the downstream petroleum sector.
This portal, however, noted that Petrol XP Ghana Limited had been registered by NPA, but it is not in good standing since the beginning of 2022.
This means that it has no legitimate licence to operate since its licence had expired.
It is important to note that Petrol XP Ghana Limited, which is the registered entity that is not in good standing, has the spelling of Petrol has (L) while the company that bought the slop from TOR had Petro without (L).
The action of TOR is in breach of Sections 11(1) and (2) of the NPA Act, Act 691 which stipulates that:
- A person shall not engage in a business or commercial activity in the downstream industry unless that person has been granted a licence for that purpose by the Board.
- The business or commercial activities of the downstream industry in respect of crude oil, gasoline, diesel, liquefied petroleum gas, kerosene and other designated petroleum products are: (a) Importation, (b) Exportation, (c) Re-exportation, (d) Shipment, (e) Transportation, (f) Processing (g) Refining, (h) Storage, (i) Distribution, (j) Marketing, and (k) Sale.
Ghana: BPA Grabs Five HESS Awards
Ghana’s second state largest power generation company, Bui Power Authority (BPA), won five awards at the 2022 Health Environment, Safety and Security (HESS) Award held on Friday, June 17, 2022, at the Movenpick Ambassador Hotel, Accra.
BPA won the Best Company in Employee Health & Wellbeing Initiatives, Best Company in Employee Safety and Security Management, Best Company in Environmental Management Practices,
Sustainability and Operational Excellence Award and Best Company in HESS Compliance, Reporting & Monitoring.
Addressing the gathering, Board Chair of Ianmatsun Global Services Limited, Diana Heymann-Adu, said it is vital that the rehabilitation process, following the devastating effects of the Coronavirus pandemic begins with the building of a stronger and more health-conscious working environment.
“Being aware of the negative impact of the Coronavirus pandemic around the world, of which Ghana is no exception, it is imperative that the recovery process begins with the building of more robust workspaces and workforce. This will ensure that companies are better equipped for sustainability and a better future,” she said.
Events Director for HESS Awards, Isaac Adu-Gyamfi, said the purpose of the award is to encourage businesses in Ghana to implement health, safety and security initiatives as a method of building a more resilient workspace and workforce as they fight to recover from the consequences of the pandemic.
He said measures are being put in place to ensure that the government passes the Health and Safety bill into law.
“We are advocating for the bill to be passed. For the past four years, we have been going to the ministries and they have been telling us about the process and progress of the bill which is yet to go to parliament for a review and then later be passed, but we are hopeful because there are so many things that the bill will help solve when it is passed,” he said.
Nigeria: Buhari Approves TCN UnbundlingSource: https://energynewsafrica.com
South Africa: Democratic Alliance Demands Dismissal Of Mineral Resources & Energy Minister Over Power Crisis
South Africa’s opposition political party, Democratic Alliance (DA), is calling for the dismissal of the country’s Minister for Mineral Resources and Energy, Gwede Mantashe, over the country’s energy crisis.
South Africa’s power utility company, Eskom, has been implementing load shedding due to a shortfall in power generation.
In a statement issued Tuesday, DA noted that the threat of stage ‘6’ load shedding highlights the failures of the governing African National Congress (ANC) and, in particular, a string of energy ministers and Eskom war rooms led by President Cyril Ramaphosa’s first and later by Deputy President, David Mabuza.
“The ongoing silence by Ramaphosa, Gwede Mantashe and Pravin Gordhan is proof that they are little more than bystanders in a crisis of their own making.
“In our call to Cabinet for the State of Disaster to be declared on Eskom and the electricity sector, we cautioned that South Africa’s 15-year-old load shedding crisis requires a ‘whole of society’ approach that is anchored on making electricity generation the biggest priority for the country in the next 5 years,” the Democratic Alliance said in a statement.
Eskom has warned of a possibility of stage ‘6’ load shedding during the evening peak, blaming the intensified level of power cuts on the loss of generation capacity overnight as well as the unlawful industrial action by its workers.
The DA said Mantashe, as the Minister responsible for securing South Africa’s electricity needs and planning its energy future, has been obstructive and combative in his approach to dealing with proposed solutions.
The party’s shadow Minister for Mineral Resources and Energy, Kevin Mileham said Mantashe deserved to be singled out.
Source: https://energynewsafrica.com#PowerAlert1
— Eskom Hld SOC Ltd (@Eskom_SA) June 28, 2022
Due to unlawful industrial action, Stage 6 loadshedding will regretfully be implemented at 16:00 until 22:00 this evening. Stage 4 will then continue to be implemented until midnight. pic.twitter.com/BEJZLMcjr3
Ghana: NPA Engages Petroleum Consumers In Upper East
Consumers of petroleum products in the Republic of Ghana have been encouraged to notify the National Petroleum Authority (NPA) of bad experiences they encounter at the various fuel refilling stations.
The Head of Consumer Services at the NPA, Eunice Budu Nyarko, gave the encouragement in Navrongo where she led a team from the NPA to sensitise commercial drivers on the safe use of petroleum products, as well as increase awareness of consumers on their rights and responsibilities.
According to her, this would enable the Authority to conduct thorough investigations into the matter and punish anyone found culpable.
“Issues of suspected adulteration and suspected cheating at the filling stations should be brought to the attention of the authority on time to conduct investigations quickly into it,” she stressed.
She further advised motorists to buy fuel from functional filling stations across the country, stressing that as long as it is in operation, it is presumed it has been monitored and the quality of the product is guaranteed.
The team also highlighted the activities of the Authority, which include its mandate, objectives and responsibilities to the consuming public, hazards involved in the handling and usage of petroleum products and what constitutes best practices for operators of filling stations in the downstream petroleum industry, among others.
The Upper East Regional Manager of the NPA, Osman Mahama, for his part, encouraged consumers to call on him anytime they had any petroleum-related issues in the region.
The team also visited commercial drivers and market women in Paga, Sandema and its environs as well as the Bolgatanga township.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Nigeria: Civil Society Group, SERAP, Sues Buhari Over ‘Missing N11trn Electricity Fund’
A group calling itself Socio-Economic Rights and Accountability Project (SERAP) in Nigeria has filed a lawsuit against President Muhammadu Buhari “over his failure to probe allegations that over 11 trillion Naira (US$26,477,000,000) meant to provide regular electricity supply since 1999 may have been stolen, mismanaged or diverted into private pockets.”
Despite huge investments into the West African nation’s power sector over the years, there appears to be no improvement yet as the country’s grid has reportedly collapsed, at least, three times in five months, and 130 times in seven years, plunging the nation into darkness on many occasions.
According to the World Bank, epileptic power supply costs businesses in Nigeria about $29 billion yearly.
In the suit number FHC/L/CS/1119/2022 filed last week at the Federal High Court, Lagos, SERAP is seeking “an order of mandamus to direct and compel President Buhari to investigate how over N11 trillion meant to provide regular electricity supply has been allegedly squandered by governments since 1999.”
The group is also seeking “an order of mandamus to compel President Buhari to ensure the prosecution of anyone suspected to be responsible for the missing electricity fund, as appropriate, and to ensure the tracing and full recovery of any missing public funds.”
“It is in the public interest to ensure justice and accountability for alleged corruption and mismanagement in the electricity sector, which has failed governments to solve Nigeria’s perennial power problem,” it argued.
According to SERAP, “The staggering amounts of public funds alleged to have been stolen over the years in the sector have had catastrophic effects on the lives of millions of Nigerians, akin to crimes against humanity against the Nigerian people.
“The failure to trace, find and recover the missing electricity fund is antithetical to the public interest, the requirements of the Nigerian Constitution 1999 [as amended], and the country’s international obligations.”
They further argue that “Nigerians have, for far too long, been denied justice and the opportunity to get to the bottom of why they continue to pay the price for corruption in the electricity sector–staying in darkness but still made to pay crazy electricity bills.”
They are of the view that “investigating the allegations of the missing N11 trillion electricity funds, prosecuting suspected perpetrators and recovering any missing public funds would end a culture of impunity. It would also address the persistent collapse of the electricity grid, and improve access to and affordability of electricity in the country.
“Corruption in the electricity sector and the lack of transparency and accountability in the use of public funds to support the operations of DISCOS have resulted in regular blackouts, electricity grid collapse, and unlawful hike in electricity tariffs.”
SERAP is also seeking “an order of mandamus to direct and compel President Buhari to refer to the International Criminal Court all unimplemented reports of corruption in the electricity sector gathering dust on the shelves, and to arrest and surrender those named in the reports to the court for prosecution.”
Joined in the suit as Respondent is Mr Abubakar Malami, SAN, Attorney General of the Federation and Minister for Justice.
The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare and Ms. Adelanke Aremo read in part: “Nigeria has made legally binding commitments under the UN Convention against Corruption to ensure accountability in the management of public resources. These commitments ought to be fully upheld and respected.”
No date has been fixed for the hearing of the suit.
Source: https://energynewsafrica.com