Ghana’s largest opposition party, the National Democratic Congress (NDC) has accused President Akufo-Addo-led administration of being insensitive to the masses who are suffering because of the rising cost of petroleum products in the West African nation.
According to the party, the increases in fuel prices almost every two weeks has brought untold hardship in the country and, therefore, demands that the government does something to alleviate the suffering of Ghanaians.
Ghanaians currently buy a litre of both petrol and diesel at GHS6.88 from the previous GHS6.52 per litre.
A kilo of LPG now sells at GHS7.86.
Addressing a section of journalists in Accra, capital of Ghana, Monday, October 18, 2021, the National Communications Officer of the NDC, Sammy Gyamfi demanded an immediate reduction in fuel prices in the country.
He said the government can do this by scrapping some of the taxes slapped on petroleum products.
He explained that though the Special Petroleum Tax (SPT) of 46 pesewas on a litre of diesel and petrol was introduced by the erstwhile NDC/Mahama administration sometime in 2016 to shore up the government’s revenue for development purposes, this government has introduced new taxes on fuel products such as the Energy Sector Levies of 20 pesewas on a litre of diesel and petrol and the new sanitation levy of 10 pesewas on a litre of diesel and petrol.
He further demanded that the 18 pesewas on a kilogram of LPG must be scrapped.
“We wish to call on the the government to consider the review of other existing taxes on fuel products in line with proposals submitted to the Ministries of Finance and Energy by the Chamber Of Petroleum Consumers (COPEC) and other stakeholders in the downstream petroleum sector.
“We wish to remind President Akufo-Addo and Dr Bawumia to respect and uphold the sanctity of their political pact with the Ghanaian electorate.
“The Ghanaian people did not bargain for this level of the tax burden on the prices of petroleum products in the 2020 December 7 polls.
“This government has become too removed from the stark realities of the Ghanaian people and it is about time they got back on track,” he concluded.
Source: https://energynewsafrica.com
Africa’s largest economy, Nigeria, has rejected a single pathway concept to global energy transition and net-zero carbon.
According to the country’s Minister of State Petroleum Resources, Chief Timipre Sylva, energy transition is a process; not an instant destination.
“Nigeria will continue to explore and invest in the development of hydrocarbon resources while pushing for the use of gas as a transition fuel,’’ Chief Timipre Sylva said as carried by online portal, vanguardngr.com.
He noted that for most African countries with a huge energy deficit, moving away from the deployment of hydrocarbon was a huge concern, stressing that developing countries were striving to attain a certain baseline of industrialisation.
He said while Nigeria acknowledges its commitments to net-zero as a nation, there is no gainsaying the fact that the country requires fossil fuel as its baseload energy source.
“This is undoubtedly a major concern for climate activists in developed nations, but the clamour to emphasise only renewable energy as the sole pathway to energy transition is a source of concern for African countries that are still working to achieve baseload industrialisation, address energy poverty and ensure reliable power supply.
“This is why in Nigeria, we reject the concept of a single pathway to the energy transition. Indeed, we prefer the concept of ‘just’ energy transition which takes into cognisance the specific circumstances of each nation in developing the energy transition pathway that best achieves the environmental, social, political and economic objectives of the transition in that specific nation.
“Multiple pathways to the energy transition should and must exist to ensure that no country is left behind in the process of achieving net-zero by 2050,” he added.
He explained that gas would be central to Nigeria’s plan for energy transition, adding: “First is the focus on gas. For us, this is at the heart of the energy transition and represents the first step in the journey to renewables, away from oil. Already, we have declared that gas is our transition fuel, and also represents a destination fuel as we envisage that it will be part of our energy mix by 2050, given the vast resources that can be commercialised and utilised.”
Source: https://energynewsafrica.com
The Kenyan government is cushioning fuel consumers as a result of the rising crude oil prices on the world market which is causing regular hike in fuel prices at the pump resulting in more sufferings for the masses.
The government, through the National Treasury, has released Sh24 billion (216,313,653.60 dollars) from the Petroleum Development Fund to bring down fuel prices in the latest review.
“The government will utilise the Petroleum Development Levy to cushion consumers from the otherwise high prices,” EPRA Director-General, Kiptoo Bargoria said in a statement.
Majority of low income households who heavily rely on kerosene as a source of energy were the main beneficiaries after the Energy and Regulatory Authority (EPRA) cut the price per litre by Sh7.28.
The regulator also slashed Sh5 off a litre of petrol and diesel despite increases in global prices.
According to EPRA, the landed cost for petrol increased by 1.71 per cent from $548.36 per cubic metre in August to $557.74 in September.
Diesel increased by 3.10 per cent from $489.51 per cubic metre to $508.68.
The cost of importing kerosene, however, dropped by 4.1 per cent to $477.75 from $498.19 per cubic metre.
The new prices that took effect, Thursday midnight, will see petrol users in Nairobi pay Sh129.72 per litre, Sh110.60 for diesel and Sh103.54 for kerosene.
Those in Mombasa will pay Sh127.46 for a litre of super petrol, Sh108.36 for the same quantity of diesel and Sh101.29 for kerosene.
This is a reprieve to consumers who have in the past 30 days paid up to Sh135 for a litre of petrol, generally pushing up the cost of living.
Source: https://energynewsafrica.com
The Chief Executive Officer of the Volta River Authority (VRA), Ing. Emmanuel Antwi-Darkwa says several bottlenecks need to be cleared if the country is to attain a 10 per cent renewable energy target in the power generation mix by 2030.
According to him, the current state of the Renewable Energy (RE) sector could be seen as challenged, ranging from financial, technical and market fronts.
In a speech read for him at the opening of the 7th Renewable Energy Fair in Accra on Tuesday, Ing Antwi- Darkwa explained that the specific challenges that the key industry players face include constrained off-take in the regulated market due to the moratorium on signing the new Power Purchase Agreement (PPA), difficulty in raising long-term PPA to support long-term debt financing of utility-scale projects, and difficulty in the deployment of large utility-scale facilities at a single location to improve economies of scales due to grid constraints.
The rest, as he elaborated, were the delay in rolling out projects due to the need to develop frameworks to operationalize the amended RE-Act to implement policies like net metering and competitive sourcing of REpower generation by public distribution companies, and difficulty in sourcing long-term competitive financing in Ghana to drive down the cost of renewable energy.
“Renewable energy is key to the development of Ghana’s power sector and significant investments and commitments are required to address these challenges to enable the country to achieve its ambition of at least 10 per cent of our power generation sourced from renewables by the year 2030, thereby, contributing towards the attainment of the Sustainable Development Goals (SDGs) 7 (affordable and clean energy) and 13 (climate change),” Ing. Darkwa stated.
In maintaining the leadership role in the power sector as the foremost power generating company, the VRA has successfully undergone a Financial Recovery programme and has transitioned into a sustainability plan which has renewable energy and conversion of simple cycle thermal plants to combined-cycle as key elements for driving down cost and carbon footprints.
“Having developed the first large-scale grid-connected Solar PV plant, 2.5MW at Navrongo at the time when the full-range of regulation was not in place, VRA helped shape RE regulation and seeks to continue this path by setting the pace in the development and implementation of Wind Power in Ghana,” he said.
He disclosed that VRA has commissioned a 6.5MW Solar PV plant at Lawra and is currently commissioning a 13MW plant in Kaleo with an additional 13.8MW to commence in Kaleo by the end of 2021.
However, beyond this, VRA, in the next five years, is expected to roll out RE projects which would include 60MW Hydro and 50MW Solar PV Pwalugu Multipurpose Dam Project, 60MW Solar PV at Bongo, 50MW Floating Solar PV on the Kpong Head pond and 75MW Wind Power Project Phase-1 among others.
He assured Ghana that VRA is poised to ensure leadership in the climate change agenda.
He urged participants of this year’s conference to see their participation as an opportunity to help or contribute to fashioning out clear strategies that need to be pursued to find solutions to some of the bottlenecks that hinder the development of Ghana’s renewable energy agenda.
Exxon Mobil Corp on Sunday told workers at its Beaumont, Texas, refinery their six-month lockout will end if they ratify the company’s contract offer or remove the United Steelworkers union (USW) as their representative.
“As we have told the Union, the conditions which would end the lockout remain the same: the company will end the lockout when we have a signed, ratified agreement,” Exxon said in a message posted on-line.
“This has not changed, and anything said to the contrary is untrue. Additionally, if employees were to decertify, the company would return employees to work.”
Decertification is the process to remove a union from representing employees at a given location.
The U.S. National Labor Relations Board (NLRB) is reviewing a petition signed by at least 30% of the locked-out workers that could lead to a vote to decertify USW Local 13-243 in Beaumont as their representative. No date for a vote has been set.
Workers at the 369,024 barrel-per-day (bpd) Beaumont refinery and adjoining lubricant oil plant, which makes Mobil 1 motor oil, are scheduled to vote on Tuesday on the company’s contract offer.
Bryan Gross, USW international representative, said the company chose to begin the lockout on May 1.
“The company asked, ‘What has the union done?’ The union has helped with groceries, assisted with bills, and is now providing health insurance for all of the ‘world-class employees’ at a multi-billion dollar oil company put on the street instead of bargaining in good faith for a fair contract,” Gross said on Sunday.
The USW has urged workers at the refinery to reject the contract offer in Tuesday’s vote.
The union filled a complaint with the NLRB in June alleging the purpose of the lockout was to remove the union.
Exxon said it began the lockout to prevent the disruption of a possible strike.
Source: Reuters
Gyaama Pensah Secondary Technical School, a senior high school at Aboaso in the Ashanti Region in the Republic of Ghana has been crowned the national champions of the ‘2021 High School Renewable Energy Challenge’ organised by the Energy Commission.
The school, which was represented by Miss Janet Ohemaa Nkansah and Miss Nolgo Christolove Arthur in the finals beat five competing schools to emerge winners at the event that took place at the Accra International Conference Centre, last Thursday, October 14, 2021.
Mfantsiman Girls SHS in Saltpond in the Central Region, represented by Miss Bridgette Elikplim Boafo and Miss Abigail Esinam Hededzi came second while Navrongo SHS in the Upper East Region, represented by Miss Mohammed Falilatu and Miss Pwasam Shulamite came third.
Mamfe Methodist Girls’ SHS in the Eastern Region came forth with Accra Technical Training Center securing the fifth position while Acherensua SHS in the South Asutifi District of the Ahafo Region secured the sixth position.
The schools presented different prototypes of energy generation projects made from renewable sources.
Each participating school received a cash prize.
The competition, initiated by the Energy Commission, in collaboration with the Bui Power Authority and the Ghana Education Service (GES), sought to create education and awareness in renewable energy and its efficiency among schools across the country.
It is also to help develop research skills, promote technical innovation in renewable energy efficiencies in the students for them to develop the passion for solving renewable energy challenges, climate change issues and encourage hard work through public recognition and rewards.
Mfantsiman Girls representatives receiving their prizeNavrongo SHS students in a group photograph with tutors after receiving their prizeStudents of Accra Technical Centre receiving their prizeExecutive Secretary of Energy Commission Ing. Oscar Amonoo-NeizerAkua Sakyi, Corporate Affairs Manager of Bui Power Authority receiving an award on behalf of BPA for sponsoring the 7th Ghana Renewable Energy Conference & Exhibition
Source: https://energynewsafrica.com
South Sudan’s President, Salva Kiir, has dismissed the Chief Executive Officer of the country’s national oil company, Nile Petroleum Corporation (Nilepet), Bol Ring Mourwel.
According to BBC, no reasons were given for the sacking announced in a presidential decree on the state broadcaster on Thursday night.
A new boss for the Nile Petroleum Corporation (Nilepet) is yet to be appointed.
It is unclear if the sacking was related to the recent allegations that Mr Bol ordered the accounts office to transfer $250 million (£182m) to his private bank accounts in Dubai and Khartoum.
He has denied the allegations.
Mr Bol was appointed last year, replacing Chol Deng Thon.
He was appointed to lead what the Nilepet called “ambitious growth plans and development of oil and gas sector” in the country.
Fuel consumers in the Republic of Ghana will be paying between GHS6.88 (1.13 dollars) and GHS7.11(1.17 dollars) for a litre of both petrol and diesel from Saturday, October 16, 2021, energynewsafrica.com can report.
This is per computation by the Association of Oil Marketing Companies (OMCs).
A litre of both petrol and diesel currently sells at GHS6.52.
Last Monday, the National Petroleum Authority (NPA), the downstream petroleum regulator, announced the government’s decision to suspend the Price Stabilization and Recovery Levy (PSRL) one of the tax components making the petroleum price build-up.
This has, however, not been implemented because Ghana’s parliamentarians are currently on recess.
In a statement issued by Mr Kwaku Agyemang- Duah, CEO of Association of Oil Marketing Companies in his response to claims that the removal of the PSRL will drive down the cost of fuel, said the PSRL can only be implemented if the NPA issued a written communication to the OMCs.
As it stands now, that has not been done, meaning that Ghanaians would have to pay for the PSRL until a formal communication from NPA has been done.
Mr Agyemang-Duah noted that the current pricing window ends today, Friday, 15th October 2021.
He continued that the second window of the month starts on Saturday, 16th October 2021.
He said per the AOMC Market Research Index, fuel prices including the current PSRL for petrol will range from GHc6.88 and GHc7.11 and diesel will sell at between GHS6.82 and GHS7.05.
But should the PSRL be suspended as the NPA had said, a litre of petrol would sell at between GHS6.72 and GHS6.95 while diesel would sell at between GHS6.68 Ghs and GHS6.91.
“The public should be reminded that prices of petroleum products are computed by each OMC independently and submitted to the Regulator, as a compliance to the Price Build-Up formula,” he educated.
“We would like to assure our cherished consumers that we will not do anything to compromise the quality and quantity of products dispensed at the pumps or short-change them to supposedly make abnormal profits which invariably do not exist. We have to fully recover our cost,” he concluded.
Source: https://energynewsafrica.com
The largest coal miner in the world, Coal India, has temporarily suspended supply to several industrial consumers in India as it prioritizes shipments to the coal power plants which provide most of the electricity in the country, the company told Bloomberg in a text message on Thursday.
India, like other countries in Asia, faces a severe coal supply shortage, threatening power outages and industry slowdown, amid rallying global prices of coal and natural gas.
“This is only a temporary prioritization,” according to Coal India’s text message to Bloomberg.
“Once the situation stabilizes, expected within a short time, and stocks at coal-fired plants attain a comfort level, other sectors will be brought back to their regular supply norm,” the world’s top coal miner said.
The current coal shortage in India, which has an average of just three days worth of coal in stockpiles, could last for up to six months, Power Minister R.K. Singh said last week.
“I can’t say I am secure… If you have 40,000-50,000 MW (of thermal capacity) with less than three days of stock, you can’t be secure,” Singh told The Indian Express in an interview last week.
India’s massive coal fleet is running out of coal, threatening a power crunch in the country that relies on the dirtiest fossil fuel for most of its electricity generation. Coal is the major power generating fuel in India, accounting for 70 percent of electricity generation.
Coal inventories at many of the 135 coal-fired power plants are at critically low levels, while India scrambles to get more coal supply amid a global crunch of energy supply and skyrocketing prices of coal and natural gas.
As of this week, India’s thermal power plants have an average of four days of coal stockpiles compared to a recommended level of between 15 and 30 days, The Indian Express reported on Thursday, citing a situation review of the coal and power ministries. Several states in India, including Delhi, Punjab, and Rajasthan, have warned of potential blackouts due to the coal supply shortage.
Source:Oilprice.com
Ghana’s national oil company, GNPC, has acquired seven per cent Commercial Interest in both the Jubilee and TEN blocks from American oil and gas company Occidental Petroleum for a purchase price of USD199 million effective 1st April 2021.
Consideration due to OXY at completion was approximately USD165 million after taking into account closing adjustments.
Occidental had, before this transaction, acquired the Ghana assets of Anadarko.
This acquisition adds to GNPC’s existing Carried and Participating Interest (CAPI) of 13.64 per cent in the Jubilee Field, and 15 per cent in the TEN Field.
The interests acquired will be transferred to GNPC’s subsidiary, the GNPC Exploration and Production Company (GNPC Explore).
With this acquisition, GNPC Explorco will become part of the contractor group for the two blocks, together with Tullow, Petro SA and Kosmos, which also bought an additional interest in the two blocks.
This is in line with GNPC and the government’s strategy of increasing its participating stakes in viable oil blocks going forward.
Commenting on the acquisition, the Chief Executive of GNPC, Dr Kofi Koduah Sarpong said, “This acquisition is of immense benefit to GNPC as it allows GNPC Explorco to start generating cash flow for its activities. There is also a debt write-off of over USD30 million from KOSMOS Energy.
Kosmos Energy has also agreed to train GNPC technical staff in support of GNPC’s quest to build operator capacity.”
Source: https://energynewsafrica.com
American oil and gas company, Kosmos Energy, has acquired an additional 18 per cent interest in the Jubilee field and an additional 11 per cent interest in the TEN fields in the Republic of Ghana from Occidental Petroleum (OXY) for a purchase price of $550 million effective April 1, 2021.
Consideration due to Occidental Petroleum (OXY) at completion was approximately $460 million after taking into account closing adjustments.
This transaction increases Kosmos’ interests in Jubilee to 42.1 per cent and TEN to 28.1 per cent.
The transaction is subject to a 30-day pre-emption period, which, if fully exercised, could reduce Kosmos’ ultimate interest in Jubilee by 3.8 per cent to 38.3 per cent, and in TEN by 8.3 per cent to 19.8 per cent.
Before closing the transaction, Occidental Petroleum (OXY) resolved certain historical tax claims related to the sold interests.
Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, said: “This is a compelling transaction for Kosmos that accelerates our strategic delivery and is expected to provide long-term sustainable cash flow from fields where we have a deep understanding of the value and future upside.
“We expect the additional Ghana interests to generate around $1 billion of incremental free cash flow by the end of 2026 at $65 Brent with upside given current prices.
“We plan to use the additional cash flow from these assets to reduce absolute debt levels and fund our growth in LNG.”
Financially, the transaction is highly accretive across all key metrics, including free cash flow and “accelerates our committed path to deleveraging the balance sheet.
“With significant net asset value accretion for the company, we believe that this transaction will deliver substantial returns to our shareholders.”
The transaction creates a simplified and aligned partnership in both the Jubilee and TEN fields, with both Kosmos and GNPC increasing their ownership.
The partnership is committed to investing in both fields to maximize the value of the assets and reduce the carbon intensity of operations for the benefit of all stakeholders.
Kosmos Energy Ltd. has launched a registered underwritten public offering of 37.5 million shares of common stock.
In addition, Kosmos intends to grant the underwriters a 30-day option to purchase up to an additional 5.625 million shares of common stock at the public offering price less underwriting discounts.
Kosmos intends to use the net proceeds from this offering to repay outstanding borrowings under its commercial debt facility, including borrowings incurred to finance a portion of the previously announced acquisition of Anadarko WCTP Company.
Barclays, BofA Securities and Jefferies are acting as joint book-running managers in the Offering.
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic.
Source: https://energynewsafrica.com
Ghana’s second-largest state power generation company, Bui Power Authority (BPA), has reaffirmed its commitment to supporting the development of renewable energy in the West African nation.
According to the power producer, the signing of the BPA Amendment Act 2020 (Act 1046) into law in December 2020 has positioned the BPA in a pole position to contribute significantly to the target of increasing renewable energy contribution in the country.
In that regard, the Authority said it would stand by to provide its technical support to execute and manage renewable energy projects that the Minister for Energy would designate in line with the Renewable Energy Amendment Act 2020 (Act 1045).
The CEO of Bui Power Authority, Mr Samuel Kofi Dzamesi said this in a speech read for him by his deputy, Ing. Anthony Osafo Kissi, at the 7th Ghana Renewable Energy Conference & Exhibition Fair organised by the Energy Commission.
Mr Dzamesi explained that, in line with a major policy action under Ghana’s commitment to the Paris Agreement on Climate Change to scale up renewable energy penetration by 10 per cent by 2030, the BPA is positioned to support the achievement of the mitigation targets set for small and medium hydropower programmes and utility-scale solar programmes.
To meet the target, the BPA is poised to impact both renewable energy projects dotted around the country and unearthing and developing skills in young students.
He said as a platinum sponsor of this year’s Ghana Renewable Energy Conference and Exhibition Fair, the BPA collaborated with the Energy Commission to scout for innovative ideas and skills through the Senior High School Renewable Energy Challenge.
“I have received good reports of great innovative ideas which the Senior High Schools country-wide displayed,” he commented.
“For this reason, we are supporting the Renewable Energy Fair, which provides an excellent platform to deliberate on topical energy issues and provide an opportunity to chart a way forward toward promoting renewable energy in Ghana,” he stated.
Source: https://energynewsafrica.com
Energy Think Tank, Africa Centre for Energy Policy (ACEP), is demanding the Government of Ghana to immediately apply the balance of monies so far raised from the implementation of the Price Stabilisation and Recovery Levy (PSRL) to cushion petroleum consumers who are suffering from the rising cost of fuel at the pump.
According to ACEP, based on the consumption data of petroleum products between 2016 and the half-year of 2021, the PSRL is estimated to have cumulatively raised about GHS2.53 billion, out of which an average of 50 per cent is estimated as subsidies for premix fuel and Residual Fuel Oil (RFO).
ACEP said adjusting for 25 per cent non-collection rate or theft by some Oil Marketing Companies (OMCs), the PSRL is estimated to have cumulatively raised about GHS1.89 billion.
“Out of this amount, about GHS948 million is expected to have been cumulatively spent on subsidies, leaving about GHS948 million as the balance of the account,” ACEP said.
The Price Stabilization and Recovery Levy (PSRL) was established in 2015 under the Energy Sector Levies Act, 2015 (Act 899).
It would be recalled that last Monday, the Government of Ghana, through the petroleum downstream regulator, the National Petroleum Authority (NPA), announced the suspension of the Price Stabilisation and Recovery Levy for two months to cushion consumers.
In a statement reacting to the new development, ACEP said, “For policy credibility, the utilization of the accumulated balance is what is required to cushion consumers in this high oil price period.
“Simply zero-rating the PSRL for two months creates the assumption that the government does not intend to activate the price stabilization purpose of the PSRL, thus, raising the fundamental accountability question of what the government intends to use the estimated balance of GHS948 million in the PSRL account for.”
Clink on the link below for the full statementACEP Presser on the Zero Price Stabilization and Recovery LevySource: https://energynewsafrica.com
The Liquified Petroleum Gas (LPG) users in the Republic of Ghana should be prepared to pay more for the domestic commodity in the next few days, Vice President of LPG Marketers, Gabriel Kumi has said.
The Government of Ghana, through the country’s downstream petroleum regulator, NPA, last Monday, October 11, 2021, announced the removal of the Price Stabilization and Recovery Levy (PSRL) fuel products.
The removal of the PSRL is anticipated to reduce the cost of LPG, petrol and diesel, but that looks impossible given the rising cost of LPG and crude oil on the international market
A kilogramme of LPG currently sells at GH7.50 while a litre of petrol and diesel sells at GHS6.52.
Reacting to the removal of the Price Stabilization and Recovery Levy, the Vice-Chairman of the LPG Marketers Association, Gabriel Kumi, albeit commended the government, cautioned consumers against jubilating over the new development.
He said per their projection, the LPG price will go up by 40 pesewas in the second pricing window, beginning from Saturday, October 16, 2021.
“We are excited that gradually, the government is beginning to see reason in our persistent and consistent call for the removal of taxes from a product like the LPG because currently, the consumption of LPG is on the decline. We are not growing as we should because of high prices.
“But we project that by December 2021, if we don’t take serious measures to reduce the price of LPG, we should be buying LPG at about GH¢10 per kilo.
“This is going to throw away a lot of people from consuming LPG, which is very dangerous for our environment and very dangerous for Ghana. So, we would want to renew our call on the government to consider removing the existing taxes on the LPG because this is a product we need to subsidise,” he stressed.
He mentioned that some neighbouring countries have subsidised the price of LPG, saying, “But in Ghana, we put as much as 20% tax on the product and this is seriously affecting consumption. We call on the government to do something about that.”
Source: https://energynewsafrica.com
Each participating school received a cash prize.
The competition, initiated by the Energy Commission, in collaboration with the Bui Power Authority and the Ghana Education Service (GES), sought to create education and awareness in renewable energy and its efficiency among schools across the country.
It is also to help develop research skills, promote technical innovation in renewable energy efficiencies in the students for them to develop the passion for solving renewable energy challenges, climate change issues and encourage hard work through public recognition and rewards.
Source: https://energynewsafrica.com 
