The hope of the President-elect of United States of America, Joe Biden, to implement his new policy to control permits for drilling oil and gas would have dire consequences for Sub-Saharan African economies, Dr. Babajide Agunbiade, a Director of National Oilwell Varco, has said.
According to him, he foresees that without political sheltering by Trump’s leadership in Washington, U.S majors like ExxonMobil and Chevron, which have remained focused on the traditional energy business, are beginning to implement strategies for global energy transition like BP and Royal Dutch Shell.
This, he said, would lead to drastic reduction in fossil fuel, which is the main stay of many oil and gas producing countries in that area.
“The implication for Sub-Saharan oil and gas production is that with renewable energy taking the more central stage during the Biden-administration, fossil fuel demand will continue to decline, leading to reduced drilling, production and exploratory activities,” he emphasised in an interview with energynewsafrica.com.
In effect, he stressed that many nations in Sub-Saharan Africa would suffer job losses just like the United States of America and Europe.
This step, Dr. Agunbiade said could equally lead to reduction in global demand for hydrocarbon as a result of the new focus on more desire for renewable energy options in the energy metrix.
Dr. Agunbiade, who is an expert in subsea engineering, noted that should Biden go ahead and ban issuance of federal lands and waters, as well as leasing on public lands, it would automatically result in protecting the climate from further destruction, but would also impact on revenues for Sub-Saharan economies.
“There will be low or zero-carbon energy production, green industry manufacturing and more climate friendly regulations,” he stressed, but assured that Sub-Sahara might not have an immediate plan to shift to renewable energy.
He further anticipates removal of subsidies for fossil fuel, which environmentalists hint pumps about US$2 billion annually into the green industry.
Source: www.energynewsafrica.com
The Government of Ghana has released funds to settle part of its indebtedness to the Independent Power Producers in the West African nation.
According to the Deputy Minister for Finance, Charles Adu Boahen, the government has been making financial commitment to the IPPs and wondered why they have constantly been issuing threats to it.
“The IPPs are getting paid,” Mr. Charles Adu Boahen said in a response to a text message sent to him via the telephone.
The Chamber of Independent Power Producers Bulk Consumers and Distributors (CIPDiB), the umbrella body of the IPPs, last Thursday, November 12, 2020, served a warning notice to the CEO of Ghana Grid Company (GRIDCo) and the Ministry of Energy about their intention to shut down their power plants over failure of the government to settle its indebtedness.
As at July, 2020 government owed IPPs to the tune of US$1.5 billion.
However, the government has managed to pay half a billion dollars of the debt, reducing the total debt to about US$1 billion.
It is not clear how much has been paid but sources within the IPPs Chamber told energynewsafrica.com that the government started crediting the account of their members last Friday, stressing that they are hoping that by
Monday, each of the IPPs would have received their portion of the amount released.
Though the source could not tell the quantum of the amount, it said it was below their expectations.
Ghana has about 21 power plants with total installed capacity of about 5,050MW.
Out of the 21 power plants, the state owns 10 with a total capacity of 2,270MW while the IPPs own 11 with a total capacity of 2780MW.
Source: www.energynewsafrica.com
BP, a British multinational oil and gas firm, has announced the introduction of a new robotic crew member on its Mad Dog platform in the Gulf of Mexico.
In a tweet sighted by energynewsafrica.com, BP said: “Spot is performing autonomous operator rounds on the production deck and we believe spot can improve safety and efficiency,’’
Commenting on the new innovation, Facilities Technology Manager, Adam Ballard said: ‘‘One way to drive digital transformation on BP’s sites is to deploy robots for the inspection of its remote facilities. In this application, the robots will do the work of people by performing tasks like scanning for abnormalities, tracking corrosion, or checking gauges.
Introducing our newest crew member on the Mad Dog platform in the Gulf of Mexico – Spot, the @BostonDynamics robot ?. Spot is performing autonomous operator rounds on the production deck and we believe Spot can improve safety & efficiency
“I see robots as being the eyes, ears, nose and other senses at our sites,” Ballard said.
“It is about being able to use sensors to have that real-time understanding, and to get the context of the facility for someone such as an office-based employee that’s trying to help troubleshoot a job or a piece of equipment—while minimising the exposure of people to these potentially dangerous environments.”
This use of Spot would help BP reach one of its key goals: improving employee safety by keeping people away from potentially hazardous work environments.
“There are thousands of pounds of pressurised combustible material out there,” Ballard said.
“High-pressure oil and gas can create risks for people working in close proximity. If we could have a robot with the proper sensors out there, we’d much rather do that.”
Improving safety isn’t the only thing Spot can do for BP. When these robots are out on remote sites, they can improve operational efficiency by gathering larger data sets on how equipment on these sites performs.
As Yasser Bangash, Senior Facilities Engineer on the innovation and engineering team explained: “If you send a human out, they can look at two or three things at a time. A robot, like Spot, can have several different sensors or cameras on it, and process all that information at the same time.”
Meanwhile, the operators back in a secure location can focus on applying judgement to the information in order to make smart decisions rather than data collection.
With the election of U.S Democratic Party’s Presidential candidate Joe Biden, as the 46th President of the United States of America, the question many oil and gas industry watchers are asking is how the future of oil and gas industry with Joe Biden in the helm of affairs will be.
Energynewsafrica.com reached out to Dr. Babajide Agunbiade, a Subject Matter Expert in Subsea Engineering and Director at National Oilwell l Varco, to seek for the implications of U.S oil and gas industry with Joe Biden in the helm of affairs.
Below is the response of Dr. AgunbiadeDr. Babajide Agunbiade
I believe the following agendas will drive Joe Biden’s Energy policy: First, An irreversible path to achieve economy-wide net-zero emissions by 2050. Secondly, a drive towards a historic investment in clean energy and innovation and finally, requiring aggressive methane pollution limits for new and existing oil and gas operations; developing rigorous new fuel economy standards aimed at ensuring 100% of new sales for vehicles will be zero-emissions; protecting America’s natural treasures by permanently protecting the Arctic National Wildlife Refuge and other areas impacted by President Trump’s policy on federal lands and waters; banning new oil and gas leasing on public lands and waters.
While Trump had sought to maximize domestic oil and gas production within the United States, Biden will ban the issuance of new drilling permits on federal lands and waters to fight global climate change.
According to data from the Interior Department, the US produced nearly 3 million barrels of crude oil per day from federal lands and waters in 2019, along with 13.2 billion cubic feet per day of natural gas.
That amounts to about a quarter of total domestic oil output and more than an eighth of total US production of gas. A federal ban on new permits would mean those numbers trend toward zero over a matter of years.
I foresee that without the political sheltering by Trump’s leadership in Washington, U.S. majors like ExxonMobil and Chevron that have remained focused mainly on the traditional energy business will begin implementing strategies for a global energy transition more like European oil and gas companies like BP and Royal Dutch Shell.
The implication for Sub-Saharan Oil and gas production is that with renewable energy taking the more central stage during the Biden administration, fossil fuel demand will continue to decline, leading to reduced drilling, production and exploratory activities.
Impact
There would also be an impact on global and the US public revenues – Oil and gas production generated about $12 billion in public revenue in 2019, divided between the US Treasury, states and counties, tribes, and cleanup funds.
According to Wood Mackenzie, 2020, there’s Potential legal Implications – Upstream producers have already invested billions of dollars into exploration and development projects. In US GoM alone, companies have invested over US$180 billion since 2005 in drilling and exploratory activities on the land the Biden government is looking to ban.
There would be removing subsidies for fossil fuels, which, some environmentalists say, inject roughly $20 billion into the industry annually.
There would be an emphasis on low or zero-carbon energy production, green industry manufacturing, and more climate-friendly regulations.
There will be generous government research grants to renewable energy start-ups. The solar and wind producers will enjoy munificent tariffs, and, hopefully, the nuclear industry and fusion pioneers.
Potential job losses in areas that traditionally rely on oil and gas employment.
However, this could be balanced out by Biden’s plan that would create millions of new jobs.
There is a further decrease in global demand for hydrocarbons due to renewable Energy options coming to play, which will impact the already volatile oil prices.
Conclusion
To conclude, it will be imperative for the incoming federal government to maintain a balanced curve in passing such legislation. The Oil and Gas industry still maintains a reliable place in annual revenue generated. Biden’s proposals could bring about some of the most substantial deviations that the US offshore industry has ever seen. Careful thoughts need to be made. After all, not every President has fully stuck with their pre-election promises. The fact that Biden mentioned that he wouldn’t end fracking could be a good omen and some light at the end of the tunnel for the USA oil and gas industry.
Dr. Babajide Agunbiade is a Subject Matter Expert in Subsea Engineering and Director at National Oilwell Varco, based in Houston, Texas, United States
Ghana requires an additional generation capacity of about 225MW in 2023 and 480MW beyond 2024 in order to meet electricity demand, a study has revealed.
The West African nation has an installed energy generation capacity of 5,050MW comprising hydro, thermal and other renewable energy sources.
However, dependable generation is 4,742MW while available generation is around 3,181MW with peak demand hovering around 2,957MW as at March 2020.
Making a presentation at the second day of the 9th Ghana Economic Forum, which focused on Energy Sector, Mr. Wisdom Ahiataku-Togobo, Director of Renewable and Alternative Energies at the Ministry of Energy, said electricity demand, is projected to grow by 11 percent.
“Looking at our energy demand and supply output, we have been hearing always about excess demand. Yes, but how does it project into the future? This is a study from the power sector institutions and it shows clearly that Ghana has adequate generation to meet demand till around 2023. Beyond 2023, there is the need to add 225MW to be able to meet the 18 percent reserve margin requirement,” he said.
Challenges In The Sector
Touching on the current challenge confronting the power sector, Mr Ahiataku-Togobo said there is the issue of increased generation capacity currently in excess of demand, higher electricity generation cost resulting in reduced demand for power for industrialisation, loss of revenue due to payments of capacity charges on ‘Take or Pay’ PPAs, weak transmission and distribution infrastructure leading to high technical and commercial losses, delay in payment of electricity utility bills by residential and non-residential consumers and in particular government buildings-MDAs, hospitals, schools, security services among others-and difficulty to extend electricity to the hard to reach islands and lakeside communities along the Volta Lake.
According to him, the ‘Take or Pay’ situation is getting worse with more service sectors shifting to the use of diesel and solar powered complementary generation; further reducing demand on utility distribution system.
Measures To Address The Issues
On the measures to address the challenges in the power sector, Mr Ahiataku-Togobo mentioned that steps have been taken to negotiate for price reduction for existing IPPs in operation, re-scheduling Commercial Operation Dates (COD) of new IPPs with PPAs and renegotiating price downwards, transition from use of HFO to NG for thermal power plants, explore cheaper power generation options below 6cents/kWh to support industrialisation, placing moratorium on PPAs for new power plants (Thermal and Renewable) until issues with excess generation are addressed, as well as implementing Cash Water Fall Mechanism (equitable distribution of revenue alone the value chain).
Other measures he said are being pursued include implementing innovative mechanism for electricity consumers to regularly pay their own electricity bills (Prepaid meters, Gov. Go Solar Programme etc.), Short to medium term policy directions in the power sub-sector, procuring new power generation plants through competitive bidding, strengthening and upgrading strategic transmission networks to support rural electrification and enhance power export to neighbouring countries, replacing absolute and inefficient networks some of which are over 50 years, reducing technical and commercial losses in distribution networks; prepaid meters among others and supporting investments in renewable energy sub-sector, particularly in mini-grid and offgrid systems for remote communities not easily accessible by road.
Source: www.energynewsafrica.com
Ten people have reportedly been hospitalised after they sustained various degree of injuries following a fire outbreak at Abrofo Mpoano near Cape Coast Castle in the Central Region of the Republic of Ghana.
According to Citinewsroom.com, eyewitnesses account indicated that the fire razed a premix fuel station and destroyed scores of structures including shops in the vicinity.
The incident happened immediately after a fuel tanker discharged a premix fuel at the station.
“Upon assessment of the situation, we realised they needed assistance because the situation was more than they expected. So we had to deploy two additional fire tenders. So it took us about two hours before we were able to bring the fire under control,’’ DO3 Abdul Wasiu Hudu, a fire officer was quoted as saying.
Some outboard motors, a number of canoes and fishing nets wers said to have been destroyed by the fire.
Investigation into the actual cause of the fire has begun.
Saudi Arabia has thwarted a planned attack with explosives against an oil products terminal near the border with Yemen, the Kingdom said early on Friday, adding that the attempted attack was the deed of the Iran-aligned Houthi rebels in Yemen.
Saudi forces intercepted and destroyed on Wednesday evening two unmanned boats carrying explosives to a floating offloading platform that belongs to an oil products terminal at the port city of Jizan in southwestern Saudi Arabia just north of the border with Yemen, the official Saudi Press Agency reported early on Friday, quoting an official source at the Saudi Ministry of Energy.
The operation resulted in a limited fire on the platform’s floating hoses, which was soon extinguished and caused no injuries or fatalities, the Saudi agency said.
“The Kingdom of Saudi Arabia strongly condemns the cowardly attack, adding that such criminal acts directed against vital facilities do not target the Kingdom alone, but they also target the security of oil exports, the stability of energy supplies to the world, the freedom of international trade, and the entire global economy,” the energy ministry source told the Saudi Press Agency.
Houthi rebels have frequently attacked, or tried to attack, oil infrastructure in Saudi Arabia, especially facilities close to the border with Yemen, that are within rocket or unmanned drone reach.
Saudi Arabia, for its part, often claims it has foiled attacks from the Houthi rebels.
Since 2015, Saudi Arabia and Iran have been essentially fighting a proxy war in Yemen, where the Saudis lead a military Arab coalition to “restore legitimacy” in the country, while the Houthi movement, which holds the capital Sanaa, is backed by Iran.
The Houthis have claimed responsibility for the September 14 attacks on Saudi Aramco’s oil facilities that cut off 5 percent of daily global supply for weeks. But Saudi Arabia and the United States have said that it was Iran—and not the Houthis—who was responsible for the attack.
The Saudis and the U.S. blamed the attack on Iran, claiming evidence showed the missiles had been fired from the north rather than the south, where Yemen is.
Source: Oilprice.com
The African Development Bank and the Government of Uganda have signed a $500,000 grant agreement for financing of Micro, Small and Medium Enterprises (MSMEs) to boost business linkages on the East African Crude Oil Pipeline Technical Assistance project.
The project’s overall objective is to help develop capacity of local Uganda MSMEs along the East African crude oil pipeline, by enabling them to access new market opportunities, and building linkages with larger, national, regional and international companies.
The project aims to support inclusive private sector growth and the creation of an estimated 500 jobs along the pipeline.
Through the Fund for African Private Sector Assistance (FAPA), the Bank will contribute $500,000 to the project. The Government of Uganda through the Petroleum Authority will provide counterpart funding. A similar project is being finalised on the Tanzanian side of the border.
The grant was provided in response to a request from Uganda and Tanzania for assistance in preparing local business communities to be able to retain a portion of the $3.5 billion investment in the construction of a crude oil pipeline from Hoima in western Uganda to Tanga, on the Coast of Tanzania, agreed in 2016. This has recently been followed by the signing of an agreement in September 2020 between the two governments, for the project to be undertaken by Total E&P as the lead private sector developer.
The grant agreement was signed on 17 September by Bank Acting Senior Vice President and Chief Finance Officer Swazi Tshabalala on behalf of the African Development Bank, and Matia Kasaija, Ugandan Minister of Finance, Planning and Economic Development.
The target is to have at least 100 local micro business in Uganda and Tanzania trained to do business on the pipeline project. It is also expected to link at least 70 business enterprises or other relevant business transactions undertaken on the pipeline. With the increased number of enterprises joining petroleum supplier databases in both Uganda and Tanzania, new job opportunities would also be created for about 500 people.
FAPA is a multi-donor thematic trust fund which provides grant funding for technical assistance and capacity building to support implementation of the Bank’s Private Sector Development Strategy. Japan and Austria, and the African Development Bank are active contributors to the Fund, which to date has provided over $69 million to 87 projects in over 38 countries across the African continent.
The FAPA portfolio includes regional and national projects aimed at improving the business environment, strengthening financial systems, building private sector Infrastructure, promotion of trade and development of Micro-, Small- and Medium- Enterprise.
Additional information on FAPA can be obtained from the following link https://bit.ly/36x47fl or contact to [email protected] for specific requests.
During this year’s opening session of the Digital African Utility Week and POWERGEN Africa on 24 November, Eskom CEO André de Ruyter will open up about his time so far at South Africa’s state utility, his plans to achieve financial and operational stability for the organisation, the future of coal in the sector and how he wants to attract private sector investment in order to pivot to renewable energy.
“Having the CEO of Africa’s largest utility open African Utility Week and POWERGEN Africa has become a proud and honoured tradition for us, and for Eskom, as we have been in a formal partnership for many years,” says a delighted Chanelle Hingston, Group Director, Power & Energy for event organisers Clarion Events Africa.
She adds with a smile: “So, if you will pardon the expression, we are stoked to have André de Ruyter in conversation with leading CNBC Africa journalist Fifi Peters as a definite highlight on our agenda for this year’s digital programme.”
“An ongoing theme for our thought leadership this year is ‘Africa’s transitioning energy sector’ with particular focus on the opportunities of private sector participation in the power sector.” She continues, “through our ongoing engagement and communication with the industry this has repeatedly been raised as an important focus.
“We also have inspiring sessions on small scale hydro opportunities in East Africa, career opportunities in the energy sector, re-imaging the digital utility and a water-focused digital dialogue on public-private partnerships as an alternative procurement method in the sector.”
Going Digital
The Digital African Utility Week and POWERGEN Africa is the 20th edition of this flagship event, which was postponed earlier this year because of the COVID-19 pandemic.
Says Hingston: “At the time we promised our regular attendees, partners and clients an inspired and inspiring online platform with world-class speakers, live discussions and virtual networking and product showcases and we were true to our word when we were first to market with the first Virtual African Utility Week and POWERGEN Africa that took place from 11-15 May.
“It was hugely successful and we feel privileged to be able to offer a second event in one year and cannot wait to host the sector again later this month. Being part of the Digital Energy Festival and offering regular webinars also has helped us to stay in regular contact with the industry.”
The next live, in-person edition of this leading conference and exhibition at the Cape Town International Convention Centre will take place from 11-13 May 2021.
Digital Energy Festival
Digital African Utility Week and POWERGEN Africa forms part of the Digital Energy Festival for Africa that is hosted jointly with three other leading energy brands under Clarion Events, namely Africa Energy Forum, the Oil & Gas Council’s Africa Assembly and the energy journal ESI Africa, which has been providing weeks of compelling content since the festival started on 20 October.
In the run-up to the Digital Event, attendees can already register now for the ongoing Digital Energy Festival and enjoy free quality sessions such as fireside chats, digital dialogues and GenderLens interviews on a daily basis, as well as the inaugural Municipal Leaders Forum that is taking place from 18-19 November.
REGISTRATION for African Utility Week and the Digital Energy
Festival: https://www.african-utility-week.com/digital/general-admission
African Utility Week and POWERGEN Africa dates and location: Digital Energy Festival for Africa: 20 October-26 November 2020
Digital conference and matchmaking: 24-26 November 2020
Venue: Online
Next, live, in-person conference and exhibition: 11-13 May 2021
Venue: CTICC, Cape Town, South Africa
The Bulk Oil Storage and Transportation Company Limited (BOST) has dismissed claims by Kwame Awuah Darko, a former Managing Director of the state owned entity under the erstwhile National Democratic Congress administration, that the company was profitable during his tenure.
According to the current Management, led by Edwin Provencal, the claims by the former MD are false and wondered why he chose to spew lies in the public space when evidence available contradicts his claims.
At a media interaction on Monday, November 9, Awuah Darko took on his predecessor, Edwin Provencal, for claiming that BOST accounts, covering 2014 and 2016, were not audited. He also disputed the fact that the company made profit under his tenure.
“I am sure they are making all these claims because of the current state of corruption at BOST and TOR. PricewaterCoopers, an audit firm contracted by the government to audit BOST, presented a report that stated that we made profit. Would the government say the firm did a bad job in its findings and report? If that is the case, then, they should call for their arrest. Why would the government deny a report that they paid huge amount to conduct?” Awuah Darko queried.
He added: “Looking at this report, one could clearly tell that all these claims are aimed at watering down the quality of progress TOR and BOST had made over the years, under my leadership. We made huge profit and that remains the fact. For a Managing Director, who is paid GH¢100,000.00 per month from BOST in salary and allowances, you should be able to at least recognise.”
However, a statement signed by Corporate Communications Manager of BOST, Marlick Adjei, in response to Awuah Darko’s claim, gave a detailed explanation of the mess Mr. Darko created before leaving BOST.
Although, the statement acknowledged the fact that BOST made some profit under the National Democratic Congress administration, it was rather in the year 2012 when Dr. Yaw Akoto was the MD.
According to the statement, BOST made losses in three consistent years under the leadership of Kwame Awuah Darko.
The statement noted that a report prepared by PricewaterhouseCoopers in 2015 and 2016 showed that BOST made GHS36,341,669 and GHS458,638,724 in 2015 and 2016 respectively.
Meanwhile, the 2014 audit report, which was prepared by Tema-based Opoku, Andoh and Co., also showed that BOST made a loss of GHS89, 365,054.
The statement revealed that Conveniio Energy, a company owned by Kwame Awuah Darko, lifted products worth GHS2.3 million from BOST during his tenure and till date, the money has not been paid.
‘‘Due to lack of proper structure and adherence to procedure in the sale of products on credit to dealers, a chunk of the receivables, including that of his company, have not been paid BOST yet. We have proceeded to engage private debt collection firms in this enterprise and we are hopeful of retrieving all those monies owed BOST including that of the company he leads as CEO, Convenio Energy,’’ the statement said.
On his leadership of BOST and TOR at the same time, the statement said the two companies had separate board of directors and Mr. Darko had no deputies in this enterprise and, therefore, run a one man show.
‘‘In the final analysis, BOST, under his watch, was made to pay US$5.50 per barrel in tolling fees to TOR while the same TOR is today charging a tolling fee of US$2 per barrel in refining products for private businesses. Despite the high charges, Mr Awuah Darko ensured that TOR over-paid US$5.2 million as captured in the BOST and TOR debt validation carried out by Deloitte in November 2018.
‘‘A total of US$10 million, which Sahara Oil should have paid to BOST in respect of products sold to the NNPC of Nigeria, was also retained by Sahara in settlement of TOR debts because the two companies were mistakenly bundled
together and handed to one man to be sent to the slaughter house.
‘‘We maintain that his stewardship left BOST with a total debt of US$624 million to suppliers and related parties and a total debt of GHS273 million, which was owed to banks in the country including GCB, Standard Chartered and Universal Merchant Bank,’’ the statement concluded.
Below are portions of the Audited Accounts of BOST
Source:www.energynewsafrica.com
The Independent Power Producers in the Republic of Ghana have served notice to shut down their plants infinitum.
A shutdown notice, which was delivered to CEO of GRIDCo, Ghana’s power transmission company, and copied to the Energy Minister John-Peter Amewu and sighted by energynewsafrica.com reads: “We would like to inform you about our firm resolve to withdraw our services in the coming days infinitum.”
According to CIPDiB, the umbrella body of the IPPs, the action follows ECG and Gov’t of Ghana’s failure to settle, at least, 80 percent of their overdue receivables worth US$1 billion.
“The respective Central Control Rooms (CCRs) of the IPPs are expected to communicate with the GRIDCo’s System Control Centre. Any inconvenience is deeply regretted,’’ he warning notice concluded.
Ghana has about 21 power plants with total installed capacity of about 5,050MW.
Out of the 21 power plants, the state owns 10 with a total capacity of 2,270MW while the IPPs own 11 with a total capacity of 2780MW.
Meanwhile, in a letter dated 4th November 2020, addressed to the Energy Minister John-Peter Amewu, and copied to President Nana Akufo-Addo on Wednesday, Chairman of CIPDiB Board, Togbe Afedi expressed worry about how their calls for government to pay them for the services they have rendered to the nation has been misconstrued.
“It seems that our cry for help in our petition to the Father of the Nation, His Excellency the President, as a last ditch effort and last resort to help address our imminent and increasing financial distress and its constraining adverse effect our ability to sustain our operations and continue our business of generating power for the nation has unfortunately been misconstrued in certain quarters within government as constituting blackmailing government. We wish through you, Honourable Minister, to unequivocally re-assure Government, that there is no iota of substance in such misconception. All IPPs are genuinely committed to working with Government to address’s the challenges of the energy sector. We have always made, and willing to continue making , all possible efforts to assist Government in addressing the sector challenges. We hope we can continue this important collective national collaborative effort devoid of any blame-game,’ part of the letter stated.
Should the IPPs go ahead with their threats, the country is likely to experience power outages if the government fails to act.
Below is the data of the various generating power plants as at today, November 12, 2020.
A consumer advocacy group in the Republic of Ghana, Chamber of Petroleum Consumer (COPEC) has charged Oil Marketing Companies (OMCs) across the country to make improved investments into training their frontline staff as well as provide high-quality products on a consistent basis in order to remain competitive.
The remarks follow the completion of the second Consumer Satisfaction Survey for the month of October by COPEC, in some parts of the capital Accra.
The survey targeted eighteen (18) Oil Marketing Companies with retail outlets spread across the regions as well as a total of five hundred (500) respondents made up of commercial transport operators and private car owners.
According to the survey, over 50 percent of drivers within the catchment area of the survey, that is Amasaman and the Tema Metropolis, perceive GOIL to be the leader when it comes to the quality and quantity of fuel dispensed as well as the leader when it comes to the speed of service.
Based on the same parameters of speed of service, quality and quantity of fuel dispensed, Vivo Energy Ghana or Shell as well as Total came in second and third receiving approval from about 30 percent and about 19 percent of respondents surveyed respectively.
According to the Executive Secretary of COPEC, Duncan Amoah the OMC’s need to ensure sustained investments to improve the quality of their service and products to customers, to maintain or improve their markets share.
“If you relax, consumers will start making different choices which will impact your sales, profitability and overall sustainability of your brand. So this is to encourage the brands to improve their services. Those who are struggling per the survey, need to focus on training their pump attendants. They also need to look into improving the quality of their products to attract more customers and improve how they are perceived by drivers.”
Meanwhile, in the same survey conducted, OMCs like Goodness Oil, Allied Oil, and Benab Oil came as the most admired of the rest of the OMC’s outside of the top 3 when it came to pricing, speed of service, quality and quantity of fuel dispensed.
Uganda has for the third time in a row emerged as the top performer in this year’s Electricity Regulatory Index Report published by the African Development Bank.
The East African country, along with Namibia, Tanzania, Zambia and Kenya, the other top performers, have regulators with the authority to exert the necessary oversight on the sector.
However, the overall electricity regulatory frameworks of African countries is poorly developed, and most countries experience major regulatory weaknesses.
The ERI, a flagship report of the African Development Bank, is a composite index which measures the level of development of electricity sector regulatory frameworks in the African countries against international standards and best practices.
“The African Development Bank has been at the forefront of efforts to mainstream electricity sector regulation issues in Africa within the broader sector discourse, recognizing the importance of establishing robust legal and regulatory frameworks to support the financial sustainability of the sector and attract private sector investment,” said Dr. Kevin Kariuki, Vice President, Power, Energy, Climate and Green Growth, at the African Development Bank.
The third edition of the ERI report was launched during the Digital Energy Festival of the Africa Energy Forum, on 5 November 2020. The event brought together more than 70 stakeholders in the energy sector, regulators, international organizations, and development finance institutions like Africa50 and the World Bank.
The Director for Energy Financial Solutions, Policy and Regulations, at the African Development Bank, Wale Shonibare, said COVID-19 related restrictions had increased residential electricity demand and decreased industrial/commercial demand. This had resulted in shortfalls in the projected revenues of utilities.
“To address these challenges, regulators will be required to play an even more critical and central role post-Covid, to ensure that the sector recovers with minimal and controlled impact on consumers and utilities,” Shonibare said.
Koffi Klousseh, Director of Project Development at Africa50, praised the ERI as a great tool for assessing the readiness of the electricity sector for private sector investments.
Main findings of the ERI 2020 report
• 69% of countries surveyed have regulatory mechanisms in place to facilitate electricity access.
• In 21 of the 36 countries surveyed, the utility is not involved in funding rural electrification. The government, NGOs and consumers do this.
• In 90% of the countries surveyed, the Executive holds the power to appoint board members and heads of regulatory institutions who report to them. This removes the core of decision-making independence from regulators, who are subjected to subtle and direct political pressure to skew key regulatory decisions towards the political inclination of the government in power.
• Most countries have legislation to deal with conflict of interest among commissioners and heads of regulatory institutions while in office. However, few have adequate mechanisms to regulate conflict of interest and other ethical issues, affecting the integrity of regulatory decisions.
• Political authorities have significant influence on the finances of regulatory authorities. In many instances, laws establishing regulatory institutions do not clearly indicate sources of funds for the institution.
Other participants also shared views on the sector:
The CEO of Uganda’s Electricity Regulatory Authority, Ziria Tibalwa Waako, said:“Regulation is a catch-up game. If there are gaps, be happy to review your process and methodology.”
Foibe Namene, CEO of Namibia’s Electricity Control Board: “Regulatory independence is a balancing act between multiple stakeholders while maintaining high level of integrity in the regulatory processes and actions.”
Peter Twesigye, Head of Electricity Regulation Programme, Power Futures Lab, at the University of Cape Town: “Regulators should support utilities through tariffs to finance investments in the backbone feeders with outage management systems that will enable them to monitor reliability and the quality of power on these feeders.”
At least fourteen people have reportedly been injured following an explosion at Mighty Gas Co. Ltd Filling Station in Ho, in the Volta Region, Republic of Ghana.
The victims are currently receiving treatment at the Ho Teaching Hospital.
The explosion occurred few minutes after 5am of Wednesday November 11, 2020.
It is not clear what might have caused the inferno.
Eyewitnesses say they heard the sound of an explosion at the station and drew the attention of residents who called the officials of the Ghana National Fire Service.
It took the swift intervention of the servicemen to douse the fire.
According to reporters, five drivers and passengers who were purchasing gas sustained various degree of burns.
Management of the filling station have temporarily halted operation with a ‘No Gas’ notice at the facility.
“Looking at our energy demand and supply output, we have been hearing always about excess demand. Yes, but how does it project into the future? This is a study from the power sector institutions and it shows clearly that Ghana has adequate generation to meet demand till around 2023. Beyond 2023, there is the need to add 225MW to be able to meet the 18 percent reserve margin requirement,” he said.
Challenges In The Sector
Touching on the current challenge confronting the power sector, Mr Ahiataku-Togobo said there is the issue of increased generation capacity currently in excess of demand, higher electricity generation cost resulting in reduced demand for power for industrialisation, loss of revenue due to payments of capacity charges on ‘Take or Pay’ PPAs, weak transmission and distribution infrastructure leading to high technical and commercial losses, delay in payment of electricity utility bills by residential and non-residential consumers and in particular government buildings-MDAs, hospitals, schools, security services among others-and difficulty to extend electricity to the hard to reach islands and lakeside communities along the Volta Lake.
According to him, the ‘Take or Pay’ situation is getting worse with more service sectors shifting to the use of diesel and solar powered complementary generation; further reducing demand on utility distribution system.
Measures To Address The Issues
On the measures to address the challenges in the power sector, Mr Ahiataku-Togobo mentioned that steps have been taken to negotiate for price reduction for existing IPPs in operation, re-scheduling Commercial Operation Dates (COD) of new IPPs with PPAs and renegotiating price downwards, transition from use of HFO to NG for thermal power plants, explore cheaper power generation options below 6cents/kWh to support industrialisation, placing moratorium on PPAs for new power plants (Thermal and Renewable) until issues with excess generation are addressed, as well as implementing Cash Water Fall Mechanism (equitable distribution of revenue alone the value chain).
Other measures he said are being pursued include implementing innovative mechanism for electricity consumers to regularly pay their own electricity bills (Prepaid meters, Gov. Go Solar Programme etc.), Short to medium term policy directions in the power sub-sector, procuring new power generation plants through competitive bidding, strengthening and upgrading strategic transmission networks to support rural electrification and enhance power export to neighbouring countries, replacing absolute and inefficient networks some of which are over 50 years, reducing technical and commercial losses in distribution networks; prepaid meters among others and supporting investments in renewable energy sub-sector, particularly in mini-grid and offgrid systems for remote communities not easily accessible by road.
Source: www.energynewsafrica.com
Says Hingston: “At the time we promised our regular attendees, partners and clients an inspired and inspiring online platform with world-class speakers, live discussions and virtual networking and product showcases and we were true to our word when we were first to market with the first Virtual African Utility Week and POWERGEN Africa that took place from 11-15 May.
“It was hugely successful and we feel privileged to be able to offer a second event in one year and cannot wait to host the sector again later this month. Being part of the Digital Energy Festival and offering regular webinars also has helped us to stay in regular contact with the industry.”
The next live, in-person edition of this leading conference and exhibition at the Cape Town International Convention Centre will take place from 11-13 May 2021.
Digital Energy Festival
Digital African Utility Week and POWERGEN Africa forms part of the Digital Energy Festival for Africa that is hosted jointly with three other leading energy brands under Clarion Events, namely Africa Energy Forum, the Oil & Gas Council’s Africa Assembly and the energy journal ESI Africa, which has been providing weeks of compelling content since the festival started on 20 October.
In the run-up to the Digital Event, attendees can already register now for the ongoing Digital Energy Festival and enjoy free quality sessions such as fireside chats, digital dialogues and GenderLens interviews on a daily basis, as well as the inaugural Municipal Leaders Forum that is taking place from 18-19 November.
REGISTRATION for African Utility Week and the Digital Energy
Festival: https://www.african-utility-week.com/digital/general-admission
African Utility Week and POWERGEN Africa dates and location: Digital Energy Festival for Africa: 20 October-26 November 2020
Digital conference and matchmaking: 24-26 November 2020
Venue: Online
Next, live, in-person conference and exhibition: 11-13 May 2021
Venue: CTICC, Cape Town, South Africa
Source:www.energynewsafrica.com
Below is the data of the various generating power plants as at today, November 12, 2020.
According to the Executive Secretary of COPEC, Duncan Amoah the OMC’s need to ensure sustained investments to improve the quality of their service and products to customers, to maintain or improve their markets share.
“If you relax, consumers will start making different choices which will impact your sales, profitability and overall sustainability of your brand. So this is to encourage the brands to improve their services. Those who are struggling per the survey, need to focus on training their pump attendants. They also need to look into improving the quality of their products to attract more customers and improve how they are perceived by drivers.”
Meanwhile, in the same survey conducted, OMCs like Goodness Oil, Allied Oil, and Benab Oil came as the most admired of the rest of the OMC’s outside of the top 3 when it came to pricing, speed of service, quality and quantity of fuel dispensed.
