Ghana: Confirmed: Dr. Matthew Opoku Prempeh Appointed Energy Minister Designate
A former Minister for Education in the Republic of Ghana, Dr. Matthew Opoku Prempeh, has been appointed as the Minister designate for Energy.
He was named among the list of Ministers appointed by President Nana Akufo-Addo and submitted to the country’s Parliament on Thursday, January 21, 2021.
Prior to his appointment, there were speculations in the media that the former Education Minister, who is the Member of Parliament for South Manhyia in the Ashanti Region, would be swapping positions with Mr. John-Peter Amewu, a former Energy Minister in the first term of President Akufo-Addo.
Earlier today, Thursday, a statement issued by the Director of Communications at the Presidency, Eugene Arhin indicated that President Akufo-Addo had appointed a new Energy Minister and deputies, one of whom would be an indigene of the Western Region, the oil hub of the West African nation to head the Energy Ministry .
Opoku Prempeh hails from Pakyi No. 2 in the Ashanti Region.
He is a Medical Doctor and holds MB CHB (KNUST), MSc (Clinical Epidemiology), Netherlands Institute for Health Science in 1994 and 1998 respectively and furthered to do a post graduate training in surgery in the UK (MRCS) in 2002.
Opoku Prempeh became a Member of Parliament in 2008 for South Manhyia, then known as the Manhyia Constituency.
Source: www.energynewsafrica.com
Ghana Is On Course Towards Clean Energy-Mr Amewu
Ghana is on course for energy transition to clean energy sources including Renewable Energy, the country’s Acting Minister for Energy and Member of Parliament for Hohoe Constituency in the Volta Region, John-Peter Amewu, has said.
The West African nation has developed a Renewable Energy Master Plan and hopes to increase the penetration of the renewable energy sources mainly from solar, wind, waste to energy into the energy mix by 10 percent by 2030.
This would be in line with the country’s commitment towards Paris Agreement on Climate Change.
Currently, renewable energy, mainly from hydro power, accounts for 38 percent of the electricity generation mix.
Apart from this, there are other renewable energy plants, mainly solar, such as the VRA’s 2.5MWp solar park in Navrongo in the Upper East Region, VRA’s 6.4 MWp in Lawra in the Upper West, the ongoing VRA’s 13.5 MWp solar in Kaleo, Bui Power Authority’s 250MWp, 20MWp BXC Solar farm at Gomoa Onyadzi (near Winneba), 20MW Minergy solar farm Winneba, 100kW Safisana Waste-to-Energy Power Plant at Ashaiman and 45KW Alavanyo Tsatsadu Mini Hydro Power Plant in the Hohoe District.
Delivering a speech at the Eleventh IRENA Assembly, which is being held virtually under the theme: ‘Covid-19-Energy Transition’, Mr Peter Amewu said: “Our policy is to transition from oil-based fuels to gas and renewable in the short-to medium-term.”
He said based on this, the government, in 2020, amended the Renewable Energy Act to provide the legal backing and also create the enabling environment for scaling up renewable energy application in the country.
He said one of the key provisions in the Renewable Energy Amendment was the introduction of Competitive Procurement of power plants including Renewable Energy.
“The Renewable Energy amended Act also encourages small scale self-generation and net metering on roof tops.
Accordingly, we have commenced the integration of solar in government buildings to reduce the finance burden on the
government in paying of utility bills,” he said.
According to Mr. Amewu, the Amended Act also mandates fossil fuel based wholesale electricity suppliers, fossil fuel producers and other companies that contribute to greenhouse gas emissions to complement the global effort of climate mitigation by contributing to finance RE programmes partially for off-grid and mini grid electrification.
“Renewable Energy has a key role to play to energizing health care in off grid communities in the mist of the Covid 19 pandemic,” he concluded.
Source:www.energynewsafrica.com
Ghana Nominated As Vice Chair Of Eleventh IRENA Assembly
Ghana has been nominated for the position of the Vice President for the 11th International Renewable Energy Agency (IRENA) Assembly which is being held virtually.
The West African nation was nominated alongside Costa Rica, India and Albania.
In a letter written by H.E Ms. Teresa Ribera, President Designate to Mr John-Peter Amewu, a caretaker Minister for Energy, Republic of Ghana, it said: “At IRENA’s tent session in January 2020, the IRENA Assembly designated Ghana as Vice President of the eleventh session of the IRENA Assembly scheduled between 18the and 21st January, 2021.”
The letter congratulated Mr John-Peter Amewu and welcomed him as the member of the 2021 Bureau of the Assembly.
This year’s eleventh Assembly is under the theme: ‘COVID-19-Energy Transition’.
The IRENA Assembly offers platform for members to share their experiences on the road towards a sustainable, resilient and climate safe recovery.
In his acceptance speech, Mr John –Peter Amewu expressed gratitude of Ghana to IRENA for the nomination.
“Ghana is grateful to the Assembly for endorsing her nomination as Vice President of the Assembly. I look forward to working with the President, Spain and my colleagues Vice Presidents from Albania, Costa Rica and India,” Mr Peter Amewu said.
Source.www.energynewsafrica.com
It’s Time to Rethink Licensing Rounds: For Africa’s Oil- and Gas-Producing Countries, Negotiating the Current Environment May Require…Negotiation (Opinion)
By N.J Ayuk, Chairman of African Energy Chamber
In late 2019, as the African oil and gas industry was looking to the future with optimism, Offshore Engineer wrote that the continent had reason to expect a “more productive 2020.” Instead, the unforeseen happened, and the COVID-19 pandemic had a devastating impact on the oil and gas industry in Africa and around the world.
But even at the end of last year, during a fairly strong period for oil and gas, the publication mentioned that “delays and hiccups” were impacting licensing rounds — that is, the processes by which investors can seek oil and gas exploration licenses from the government – and argued that improvements would have to be made going forward.
This is correct. Licensing process improvements were already needed in late 2019, and now that the oil and gas industry is in the survival mode, it’s more urgent than ever to streamline licensing.
While the details vary by country, the licensing round process has, in general, become too prone to delays and uncertainty. All too often, exploration and production (E&P) companies have to wait one or two years before the exploration projects they propose are sanctioned. These practices, which help protect the interests of oil-producing nations, made sense when crude oil was sold for $100 a barrel. But they don’t make sense now.
After all, conditions are still uncertain. True, crude oil pricing forecasts for 2021 are cautiously optimistic at the moment, and Goldman Sachs has said Brent oil prices could reach $65 per barrel by this summer, up from the $50-range we’re seeing now. But the outlook for Africa’s petroleum market remains shaky at best.
And it’s not just Africa: The global oil and gas industry continues to feel the negative impacts of the COVID-19 pandemic, which dramatically lowered demand for petroleum products. As a result, oil and gas companies have made dramatic cuts to their capital spending programs, resulting in the postponement and cancellation of numerous exploration and production (E&P) projects around the world.
Under these circumstances, it’s up to African oil and gas producers to do everything possible to encourage as much E&P activity as possible, particularly by international oil companies (IOCs). In the long term, of course, African producer states do need to lessen their reliance on oil and gas revenue. But for now, a number of them rely on it for much of their budgets. And as long as they do, they ought to ask for more. They should lobby for knowledge transfers, training, gas monetization programs, and other significant opportunities so that their strategically managed oil and gas operations can create pathways for economic growth and diversification.
I’ve made a case for the importance of strategic fiscal policies, from revised production sharing contract (PSC) requirements to reduced tax and royalty requirements. Some of my friends in government have strongly criticized me for this and called me a sellout and a white boy. I disagree with them and I still love them, but resource nationalism is not the way to go and it is actually dangerous. I truly believe that these changes are necessary to give IOCs an incentive to explore in Africa during the current downturn. But we can’t stop there. We need to consider other pain points that discourage foreign operations in Africa and find ways to eliminate those challenges as well.
The licensing round process is one of those challenges. So why not remove this hurdle? Not all countries use licensing rounds; some use direct negotiation to approve exploration and production rights. I believe it’s time for more African oil and gas-producing states to choose this route. Negotiating with trusted explorers would help them avoid unnecessary delays and bureaucratic red tape. Making these changes would still allow them to emphasize their own priorities – and it might also make IOCs more likely to keep exploring within their borders.
Licensing Rounds Sound Good In Theory
Generally, during licensing rounds, companies submit bids or grants to issuing governments in hopes of being awarded an exploration license – that is, the right to search for commercially feasible petroleum deposits. In the case of bids, the highest ones get a license. Grant approvals, by contrast, are based on prospective explorers’ experience and capabilities. Licenses are awarded for set periods of time, and if commercially viable amounts of oil or gas are discovered, the explorers can negotiate contracts with the government for the right to extract what they find.
The licensing round process does have benefits. For participating countries, it helps make sure interested companies have the necessary financial resources and technical capacity to explore successfully. It ensures that projects are completed in a timely manner. It also helps E&P companies, since the process lays out their rights.
But again, even with their strengths, licensing rounds can create unacceptable hardships for oil companies: Countries tend to take a long time to make their licensing decisions. And when capex budgets have been slashed, waiting one (or even two) years to learn if an exploration project has the green light just won’t cut it. In today’s economic environment, it just isn’t realistic to insist on putting much-needed resources aside on the chance that they’ll be needed in a year or two.
And if we’re going to be honest with ourselves, we have to admit that we’re seeing more and more examples of licensing rounds gone wrong, from extended delays in getting the bidding process started to instances of little to no company participation.
Licensing Rounds Yielding Disappointing Results
Consider Algeria, where oil and gas production rates were already declining in 2019, before the pandemic, largely because of repeated project delays caused by, among other challenges, slow government approval. During four licensing rounds, Algeria saw minimal interest from investors.
Nigeria, too, is known for the less than speedy pace at which it sanctions exploration projects. Even before COVID-19, its slow movement on this front contributed to a decline in oil production over a 10-year period.
And in 2019, as I mentioned, there were licensing round mishaps in multiple countries.
“Some rounds, for example, Ghana’s First Licensing Round, have seen limited successes, while others have suffered delays or suspension,” GlobalData Upstream Oil & Gas Analyst Toya Latham told Offshore Magazine.
“Gabon’s 12th Licensing Round and Somalia’s First Offshore Licensing Round have been extended in 2020 (in part due to delays in enacting pivotal legislation), whilst Madagascar’s long overdue licensing round has been suspended.”
And we saw licensing rounds go wrong before that. In early 2018, for example, only one company responded to Cameroon’s licensing round, in which eight blocks had been available. Think about it, just one and the bureaucrats still think all is right. These issues haven’t been limited to Africa, by the way. In 2017, only one bidder responded to an opportunity to explore five offshore blocks in Lebanon. Brazil had a couple of licensing rounds fizzle in late 2019: the Transfer of Rights Surplus Round, which only brought in two bids, and the Sixth Production-Sharing Bid Round, which only attracted one bid.
We Must Consider Investors’ Perspectives
Fast forward to the oil and gas industry of 2021. In today’s reality, delayed licensing round starts and long waits for decisions are more likely than ever to dim companies’ interest. These challenges aren’t trivial, since operating in Africa already represents significant risks and expenses for IOCs. Companies must, for example, factor in the possibilities of security concerns and lapses in infrastructure along with the risks that come with every exploration project, including the failure to find commercially viable petroleum stores. Then there are the additional expenses of operating overseas, complying with local content policies, supply costs, and a myriad of taxes and fees, among others.
I’ll be the first to trumpet the opportunities for IOCs in Africa, from our vast stores of oil and gas to large swaths of unexplored territory. But we have to be realistic about how businesses work. Companies need to be able to make a reasonable profit in order to justify their outlays. And when the oil and gas industry is in the midst of a downturn, as it is now, excessive risks and expenses are the last things IOCs can consider. So we have to work with IOCs and do what we can to help them profit in order to convince them to choose African sites over other options.
Direct Negotiations Could Be a Win-Win
That’s why I think a transition from licensing rounds to direct negotiations makes sense for African countries. For one thing, negotiation periods would not be tied to rigid opening and closing schedules as licensing rounds are, minimizing the risk of unreasonably long waits for a decision. Even better, direct negotiations would allow E&P companies to work with countries to discuss, and possibly adjust, the major terms of their production contracts.
With that kind of flexibility, companies with concerns about a country — whether they have questions about tax laws or local content requirements — might be willing to pursue exploration opportunities that they would have turned down, had they been required to participate in the bidding process.
We Can Make This Work
True, even with a different licensing scheme, African countries will have other unique risk factors to address – factors that could make IOCs hesitant to invest in Africa. High on that list are concerns about corruption. That’s why the African Energy Chamber pushes so strongly for meaningful transparency measures.
And again, we can’t overemphasize the importance of creating fiscal regimes more favorable to IOCs. Those measures should include, along with fairer tax and royalty requirements, the creation of natural gas-specific production-sharing contracts, rather than relying on crude oil PSCs as a one-size-fits-all template. A lot of countries have a difficult time working with companies to get to FID on natural gas discoveries. Not only will gas PSCs help make it easier for companies to conduct profitable gas projects, they also could help prevent problems and lengthy negotiations when explorers find gas, rather than crude.
IOCs are, and can continue to be, invaluable allies to African nations. Their E&P activities contribute revenue that many oil and gas-producing countries rely on now, but we also can work with them to foster economic growth and diversification for tomorrow. African countries need IOCs to create job and business opportunities today, but we also can work with them to achieve capacity building and technological know-how that will pave the way for a better future. It only makes sense to do everything possible to give explorers the certainty, predictability, and incentives they need to be competitive in Africa.
Egypt: Germany’s Siemens Launches Studies For A Green Hydrogen Project
The Egyptian government has signed an agreement with the German group Siemens to launch discussions and studies for the development of a green hydrogen production project in the land of the pharaohs.
Egypt is entering the global race for the production of green hydrogen, presented as the energy solution of the future.
The Egyptian Minister of Electricity and Renewable Energies, Mohamed Shaker, recently signed an agreement with Joe Kaiser, the CEO of the German group Siemens, for discussions and studies aimed at developing a green hydrogen production project in Egypt.
Minister Mohamed Shaker sees this partnership as part of the Egyptian government’s strategy to balance the country’s electricity mix with renewable energies.
Biden’s Energy Transition Policy Likely To Crash Oil Production In Sub-Saharan Africa-AgunbiadeThis policy of sustainable development has led in recent years to the development of major clean energy projects such as the Benban photovoltaic solar complex in the governorate of Aswan, which will eventually inject 1.65 GWp into Egypt’s national electricity network. The country is also in turn developing its wind energy production capacity with installations concentrated in the Gulf of Suez, at the risk of lastingly disrupting the journey of migratory birds. Green hydrogen may be an effective way to secure the production of renewable energy plants that depend on natural conditions, notably the sun and wind, whose intensity can change, impacting the production of electricity. In practical terms, hydrogen makes it possible to store excess electricity produced at certain times and return it later; a good alternative for stabilising national electricity grids in Africa where some countries are increasingly relying on renewable energy in their electrification strategies. By embarking on green hydrogen, Egypt joins Morocco, which is exploring this solution in partnership with Germany. Source: www.energynewsafrica.com
UAE Targets Carbon-Capture Hydrogen To Reduce Greenhouse Emissions
The United Arab Emirates aims to become a major hydrogen producer, contributing to the oil-rich state’s effort to slash polluting carbon emissions by nearly a quarter.
The Middle Eastern country will use carbon-capture technologies to create what’s known as blue hydrogen, Sultan Al Jaber, chief executive officer of Abu Dhabi National Oil Co., said at a virtual conference on Tuesday.
Abu Dhabi is the UAE’s capital and holds most of the OPEC member’s oil and gas.
The UAE can be “one of the lowest-cost and largest producers of blue hydrogen in the world,” Al Jaber said Tuesday at the Abu Dhabi Sustainability Week online conference. There’s “no credible way” of meeting global climate goals without carbon capture and storage, he said.
Blue hydrogen is a form of the fuel created from natural gas in a process that stops the carbon emissions being released into the atmosphere. ADNOC currently has one project to capture, store and use carbon.
OTC 2021 Event Postponed Until AugustEnergy producers are looking to hydrogen, which produces only water when burnt, as a cleaner way of generating power. The UAE is also investing in green hydrogen, which is produced using renewable energy, like solar power, that doesn’t emit carbon. While hydrogen is seen as crucial for the transition from oil and gas to cleaner fuels, the technology to make it is still comparatively expensive. Asia and Europe are potential markets for the UAE’s future exports of the fuel, Al Jaber said at a separate conference, also on Tuesday. The UAE aims to cut its emissions by 24% by 2030 compared with 2016 levels, Al Jaber said. The nation is the first in the region to commit to an economy-wide reduction in emissions, he said. While the country wants to shrink its carbon footprint, ADNOC has also earmarked billions of dollars to pump more oil and gas. There are opportunities for U.S. firms to help with that goal, Al Jaber said. The government-run company will spend $122 billion over the next five years, partly to ramp up oil-production capacity to 5 million barrels a day by 2030, from around 4 million now. That plan is also intended to make the UAE self-sufficient in gas and covers the development of hydrogen. Al Jaber didn’t provide a separate investment figure for hydrogen or carbon-capture projects.
Halliburton Upbeat By Recovery Activity Despite $235 Million Loss In Fourth Quarter 2020
Oilfield services provider, Halliburton, booked a net loss of $235 million in the last quarter of 2020.
While the loss is bigger compared to the third quarter of 2020, it is significantly smaller in a year-over-year comparison.
This compares to a net loss for the third quarter of 2020 of $17 million and a net loss of $1.65 billion in the fourth quarter of 2019.
Halliburton’s total revenue in the fourth quarter of 2020 was $3.2 billion, a nine percent increase from revenue of $3 billion in the third quarter of 2020.
In the fourth quarter of 2019, Halliburton’s revenues were $5.2 billion.
Total revenue for the full year of 2020 was $14.4 billion, a decrease of $8 billion, or 36 percent from 2019.
According to a press statement issued Tuesday, January 19, 2021, Halliburton’s revenue in the fourth quarter of 2020 in the North American regions was $1.2 billion, a 26 percent increase when compared to the third quarter of 2020.
This increase was driven by a higher activity in stimulation and artificial lift in U.S. land, as well as higher well construction and wireline services activity, and year-end completion tools and software sales.
The company’s international revenue in the fourth quarter of 2020 was $2 billion, essentially flat when compared to the third quarter of 2020.
Covid-19: Let’s Pay Attention To Lessons Of The Pandemic To Make Africa Self-Reliant – Senyo HosiCommenting on the company’s performance for 2020, Jeff Miller, Chairman, President and CEO, said: “I am pleased with our solid execution in the fourth quarter and for the full year. Our swift and decisive cost actions and service delivery improvements reset our earnings power, delivering strong margins and cash flow. We also achieved historic bests in safety and service quality.” Continuing, he said: “I am optimistic about the activity momentum I see in North America, and expect international activity to bottom in the first quarter of this year. I am also encouraged by the growing pipeline of international customer opportunities and the unfolding global activity recovery. “I believe our strategic priorities will allow us to continue generating industry-leading returns and strong free cash flow and solidify Halliburton’s role in the unfolding energy market recovery,” Mr Miller concluded. Source: www.energynewsafrica.com
Mali Doubles Efforts In Renewable Energy
Mali has increased its efforts in the area of deployment of renewable energies over the last ten years, Traore Lamine Seydou, Minister of Mines, Energy and Water, has said.
According to him, “Our aim is to increase access to energy and improve our citizens’ livelihood.’’
Pandemic, Electrification Bring Hydrocarbon Demand Peak Forward To 2027Speaking at the 11th Session of the IRENA Assembly which went virtually, Mr Lamine Seydou commended IRENA for supporting Mali’s effort in the area of renewable energy. “Thanks to IRENA ADFD Project Facility initiative. Mali inaugurated its first solar farm with 50MW capacity this year,” he said. Source:www.energynewsafrica.com
Total Acquires 20% Interest In World Largest Solar Developer
French oil giant, Total has announced the acquisition of a 20% minority interest in Adani Green Energy Limited (AGEL), a subsidiary of India’s multinational company, Adani Group.
The transaction marks the deepening partnership between the Adani Group – India’s leading infrastructure platform – and Total, in the transition and green energy fields in India.
The investment in AGEL is another step in the strategic alliance between Adani Group and Total, which covers investments in LNG terminals, gas utility business, and renewable assets across India.
This is in line with the commitment of both Adani and Total to be leading participants in the sustainable economy of the future and help India in its quest for development of renewable energy.
In 2018, Total and Adani embarked on the energy partnership with investment by Total in Adani Gas Limited, city gas distribution business, associated LNG terminal business and gas marketing business.
During the development of this partnership, it was further agreed that Total and Adani shall continue this alliance into the wider renewable energy space.
Total and Adani agreed the acquisition of a 50% stake in a 2.35 GWac portfolio of operating solar assets owned by AGEL and a 20% stake in AGEL for a global investment of USD 2.5 Billion. Along with this 20% minority interest in AGEL, Total will have a seat on the Board of Directors of the company.
AGEL, started in 2015 with the world’s largest single location solar power project located in Kamuthi, Tamil Nadu (648 MW) has come a long way to be the #1 global solar power generation asset.
AGEL has over 14.6 GW of contracted renewable capacity, with an operating capacity of 3 GW and another 3 GW under construction and 8.6 GW under development. The company aims to achieve 25 GW of renewable power generation by 2025.
The partnership with AGEL in the renewables space in India will be a key contributor to Total’s objective of reaching 35 GWp of gross production capacity from renewable sources by 2025 and adding 10 GWp per year afterwards.
Speaking on the occasion, Patrick Pouyanné, Chairman and CEO of Total, said: “This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India. Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas.”
Adani Group Chairman, Mr. Gautam Adani, added: “We are delighted to deepen our strategic alliance with TOTAL, a global energy major, and welcome them as a significant shareholder in Adani Green Energy Limited. We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India.
We look forward to working together towards delivering India’s vision for 450 GW renewable energy by 2030.”
Source:www.energynewsafrica.com
Ghana: Adopt Strategies To Stall Fuel Price Hikes- COPEC Charges Gov’t
The Chamber of Petroleum Consumers, Ghana (COPEC), a civil society group that represents the interest of petroleum consumers in the West African nation, is asking government to introduce measures to stop the increase in fuel prices.
A release signed by its Executive Secretary, Duncan Amoah explains that fuel prices have shot up from GHc4.670 to GHc5.10 per litre within a month, making life unbearable for ordinary Ghanaians.
“Although these increases cannot be directly attributed to a deliberate government action, authorities have a responsibility to put in place measures to forestall them,” COPEC stated.
COPEC is stressing that fuel prices within the second pricing-window of December 2020 saw the majority of the Oil Marketing Companies (OMCs) maintaining the prices of gasoline and gasoil unchanged.
Touching on the current national average price of fuel per litre at the pump, it noted that it is pegged at GH5.36 for both gasoline and gasoil.
“For the pricing-window under review, Zen Petroleum Benab Oil, Pacific, So Energy and Alinco Oil sold the least-priced gasoline and gasoil on the local market relative to others in the industry, according to IES Market-scan,” COPEC further said.
With regards to prices of petroleum products, the group said it remained largely stable as predicted by the Institute for Energy Security (IES) in the pricing-window under review.
With the effects of Covid-19 still having dire consequences on Ghanaians, COPEC expected reductions for prices of fuel products at the pumps through the reduction on taxes to bring relief to consumers.
“While admitting the times are pretty tough, we also demand that authorities do not go to sleep but take concrete steps to plan for Ghanaians as far as fuel prices are concerned in order not to be caught flank-footed anytime international price dynamics head south,” COPEC lamented.
It wonders why Ghana, as an oil-producing nation and a net exporter, cannot continue to act as though it is in a hopeless position when it comes to managing fuel prices for its citizens like other oil-producing countries do for their people.
COPEC is, therefore, calling for a clear, effective, national petroleum price immediate sustainable and programme to be initiated to control these increases, arguing that the era of waiting for prices from the international marketing following from geopolitical developments cannot and should not be allowed to continue to work against the unsuspecting Ghanaians.
COPEC, furthermore, is hoping that no additional petroleum taxes are added, contending that any such move would aggravate the already suffering masses, promising to resist any such action fiercely.
“Lastly, we call on Ghana’s authorities to review the protocols on sitting arrangements in public transport systems as the second wave of Covid-19 is known to be spreading very fast currently with existing medical facilities getting over-stretched by the minute,” the statement ended.
Source: www.energynewsafrica.com
Syria: Oil Tankers From Iran To Syria Intercepted
Tankers carrying oil from Iran to Syria have been intercepted in the Red Sea and delayed shipments of oil to Syria, the Prime Minister of Syria, Hussein Arnous, was quoted as saying.
According to the prime minister of the conflict-ravaged Syria, as many as seven oil tankers en route to Syria have been intercepted in what he called “terrorist attacks.”
Two of the oil tankers have been delayed for more than a month in the Red Sea before loading, Reuters reported, citing state media which carried Arnous’ words.
The tanker delays have exacerbated fuel shortages in Syria, which will be looking to import more crude to meet its fuel demand, the prime minister said.
Maritime security company Dryad Global said on Sunday that “Syrian Prime Minister says two tankers heading from #Iran to #Syria were “targeted” in Red Sea.”
Quote-tweeting this, TankerTrackers.com said that “They both made it just fine to Syria even though they took a lengthy pit-stop at the Iranian purported “spy ship”, SAVIZ.
One of them has delivered a million barrels of Iranian oil to the Baniyas refinery while the other one carrying equal amount, is keeping 30,905 m distance.”
Western sanctions on Syria and the U.S. sanctions on Iran’s oil exports have made Iranian shipments to Syria more difficult in recent years. Syria, which has become increasingly dependent on imports of crude after the conflict in the country started in 2011, has relied on imports from Iran to cover its needs.
“We have become dependent on imported oil and we have used up foreign currency in large amounts to pay for petroleum products,” Reuters quoted Arnous as saying in Parliament.
Most of Syria’s oil is in the northeast of the country, which is under the control of a Kurdish-led Syrian Democratic Council, the political wing of opposition formation Syrian Democratic Forces, which has enjoyed U.S. support through the prolonged conflict.
According to Arnous, Syria now pumps just 20,000 bpd of oil, while around 400,000 bpd has been lost from oil fields in northeastern Syria.
Source: Oilprice.com
Senegal Already Produces Gas: Investors Should Look Onshore
Senegal is the hotspot for energy investment in West Africa right now, owing to a string of huge offshore hydrocarbons discoveries since 2014 (as well as its compelling renewables potential). The emergence of Senegal as a regional energy power is an exciting story. But for almost two decades, in fact, the country has been producing its own natural gas onshore, an hour’s drive from Dakar. Further investment could unlock Senegal’s onshore potential.
Introducing Onshore Senegal
Fortesa International, led by CEO Rogers Beall, started exploring in Senegal in 1997 and from the start, Beall aimed to create a business that was fully Senegalese. Today, the company has a staff of 125, with two expatriate mentors and some African expatriate staff, but the vast majority (around 98 percent) is Senegalese nationals. Beall has continually advocated for Senegal with U.S. companies and now serves on the U.S.-Africa Committee for the African Energy Chamber.
As AOP drove out to the Fortesa production site this week, Beall pointed to a plateau in the far distance, while we passed through a shallow valley. That, he said, is the edge of the 120-square-kilometer Thiombane Dome geological formation. It sits on the eastern side of the carbonate shelf edge that runs north to south along the coast of West Africa.
Volcanic eruptions in the sea 175 million years ago, joined up by sand blown in from the Sahara, created the Dakar peninsula. That same feature on the carbonate shelf edge extends deep into the Atlantic Ocean, and this is the basis for the massive offshore oil and gas fields generating so much excitement globally. This is where North America used to connect to Africa, and where we are driving now used to be the state of Georgia before it was the deep ocean bed. The African plate itself never moved.
“The single place between Morocco and Guinea where that shelf comes onshore is east of Dakar,” says Beall. Here, on land and a short drive from the capital, Fortesa is operating seven wells (one out of service temporarily due to an accident – the company’s first serious one – on December 20, 2020) tied back to a gas processing plant. The manifolds and tanks were built in Senegal, the whole facility was assembled by a local team, and on our visit, we met with dozens of Senegalese workers who had trained with Fortesa and were operating the facilities.
The Gadiaga field usually produces 3 million cubic feet (mcf) per day and could produce 7 mcf per day. This small field has produced just over $95 million of natural gas. But, as Beall says, “This is small potatoes compared to what Senegal needs.” The geology says that Gadiaga may sit next to a much larger gas field situated on the edge of the shelf in the Thiombane Dome. This strong potential is what Fortesa wishes to explore and develop, with fellow investors.
Natural Gas Could Do More
Fortesa’s operation may look familiar in the Niger Delta, where local companies have been producing onshore from marginal fields since 2002. But in this region, Fortesa’s gas production business is unique, and like the most effective Niger Delta marginal field companies, it enjoys the support of the local community to staff and safeguard the well sites, pipe yard and processing plant.
Energy independence is the key to Senegal’s success, says Beall. Energy poverty is a trap that ties people down to subsistence living from Senegal to Somalia. Natural gas, available in abundance onshore as well as far out to sea, can be a fuel to remove those limits.
“Right now, this country is paying $14 per mcf by using heavy fuel oil. [In doing this] they are making six times the pollution, six times the negative effect on the planet, and nearly double the cost,” says Beall. “We are able to make the investment and take the risk of drilling onshore, and [in this region] only Fortesa is doing this.”
Natural gas is cleaner and cheaper than the alternatives. It provides direct and indirect jobs for hundreds at Gadiaga, and more of it is available onshore. The company is keen to expand within its acreage to find and develop the onshore elephant that the geology points to, as well as optimizing current production. But with European and other Western financing institutions now shutting down funding for hydrocarbons, few options are available to fund expansion.
The Foundation Is Already There
Fortesa built a foundation for Senegal’s emergence as an energy player. Beall believed in the potential of Senegal before many in Europe and North America had thought to examine the country’s subsurface. His company worked with or trained many of the people now going on to run the sector or work at the national oil company Petrosen and others.
Onshore gas growth is possible and would lead to direct job creation and sustainable energy provision to households and businesses – and save on costly and high-polluting fuel oil imports.
“This is one of the most cost-effective operations in Africa. Fortesa has essentially unlocked the value of Senegal’s energy resources. The projects run by Rogers and his team are sound and are an example of projects that can generate cash and deliver the return on capital that investors are looking for,” said NJ Ayuk, Executive Chairman of the African Energy Chamber, to AOP. “I see a team that is focused on improving asset-level economics, reducing capital outlay, and stretching their dollars to do more with less.”
AOP’s mission is to bring investment to African energy of all kinds, with a view to making life better for people and businesses. Issues of climate change and sustainability must be addressed urgently. But comparatively clean natural gas and the people that produce it (and industries that can use it) should not pay the price for Western institutions’ opposition to funding hydrocarbons. “We need to give a chance to people to advance,” Beall told us. “Let’s do things that work.”
How Optimized Energy Management Delivers Reliability, Efficiency And Sustainability At The Fekola Gold Mine (Opinion)
By: Luke Witmer
Since B2Gold first acquired the Fekola gold mine, located in a remote corner of southwest Mali, exploration studies revealed the deposits to be almost double the initial estimates. A recent site expansion has just been completed, and while the existing power units provide enough power to support the increase in production, the company sought to reduce its energy costs, cut greenhouse gas emissions, and increase power reliability. The addition of a 35MWp solar photovoltaic (PV) plant and 17MW/15MWh of energy storage to the existing 64MW thermal engine plant was decided. This new energy mix is anticipated to save over 13 million litres of fuel, reduce carbon emissions by thirty-nine thousand tons per year, and generate a payback in just over four years.
Such an elaborate hybrid configuration needs a powerful brain to deliver on all its potential: Wärtsilä’s GEMS, an advanced energy management system, has been set up to control the energy across the fleet of power sources, thermal, renewable, and battery storage. The integration, control, and optimization capabilities provided by GEMS allow the thermal units to be run at the most efficient rate and enable the battery storage to handle the large load step changes and volatility of the solar PV generation assets.
Integrated Hybrid Energy Solution
In the context of the Fekola mine, which is an off-grid electrical island, the battery is performing a lot of different services simultaneously, including frequency response, voltage support, shifting solar energy, and providing spinning reserves. The energy load is very flat, with a steady consumption rate around 40MW as the mining equipment is operating consistently, 24/7. However, if an engine trips offline and fails, the battery serves as an emergency backstop. The controls reserve enough battery energy capacity to fill the power gap for the time it takes to get another engine started, and the software inside each inverter enables the battery to respond instantaneously to any frequency deviation.
The reciprocating engines operate most efficiently at 85-90 percent of their capacity, this is their “sweet spot”. But if there is a sudden spike in demand, if a little more power is needed, or if mining equipment is coming online, then another engine needs to be run to meet the extra load. With the battery providing spinning reserves, the engines can be kept running at their sweet spot, reducing the overall cost per kilowatt hour. Moreover, with the solar plant providing power during the day, three to four engines can be shut down over this period, providing a quiet time to carry out preventive maintenance. This really helps the maintenance cycle, ensuring that the engines operate in a more efficient manner.
Solar PV volatility can be intense. On a bright day with puffy clouds passing by a solar farm of this size can easily see ramps of 25MW over a couple of minutes. This requires intelligent controls, dynamically checking the amount of solar that can be let into the grid without causing an issue for the engine loadings or without overloading the battery.
Conducting The Orchestra
The GEMS intelligent software provides the optimization layer that controls all the power sources to ensure that they work together in harmony. The user interface (UI) gives access to all the data and presents it in a user-friendly way. Accessible remotely, all operations are simulated on a digital twin in the cloud to verify the system controls and simulate the most efficient operating scenarios to lower the cost of energy. This is an important software feature, both during and after commissioning as it allows operators to train on the platform ahead of time and familiarise themselves with the automated controls and dynamic curtailment of renewables. The UI provides the forecast for renewables and the battery charge status at any given moment, it can provide push email or phone notifications for alerts; telling operators when to turn off an engine and when to turn it back on.
The software is constantly analysing the data and running the math to solve the economic dispatch requirements and unit commitment constraints to ensure grid reliability and high engine efficiency. Load forecasting integrates the different trends and patterns that are detectable in historic data as well as satellite based solar forecasting to provide a holistic approach to dispatching power. The Fekola site has a sky imager, or cloud tracking camera with a fisheye lens, that provides solar forecasts for the next half hour in high temporal resolution.
Seychelles: China To Provide $11 Million Funding For Renewable Energy ProjectsTo ensure that operators really understand the platform, and have visibility over the advanced controls, the UI provides probability distributions of the solar forecast. Tracking the forecast errors enables operators to see whether the solar is overproducing or underproducing what the forecast was expecting at the time and provides visibility to the operators on the key performance indicators. This feedback is an important part of the machine/human interface and provides operators with insight if an engine is required to be turned on at short notice. Automated curtailment enables the optimization of the system providing a reactivity that people cannot match. By continually monitoring the engine loadings and battery, the system is ready to clamp down on solar if it gets too volatile or exceeds some spinning reserve requirement. For example, if a large, unexpected cloud arrives, the battery is dispatched to fill the gap while the engines ramp up. Once the cloud disappears however, the engines remain committed to operating for a few hours, and the solar power is transferred to recharge the battery. Over time, as load patterns shift, the load forecasting algorithm will also be dynamically updating to match the changing realities of the load. As mining equipment hits layers of harder rock, increasing the power load, the system will adjust and dispatch the engines accordingly. Hybrid Solutions Will Become The New Gold Standard For Off-grid Heavy Energy Users The Fekola mine project incorporates the largest off-grid hybrid power solution in the world, demonstrating the growing case for clean energy and its sustainable and economic potential for mines in Africa and beyond. As the cost of batteries and solar panels continues to become more competitive, hybrid solutions are proving to be a realistic and effective means for increasing energy reliability and lowering operating costs in any context, thus freeing up resources to improve the human condition; whether through cheaper materials and gainful employment, or by providing broader access to reliable electricity for healthcare, education, and improved quality of life. By Luke Witmer, General Manager, Data Science, Wärtsilä Energy Storage and Optimization
Highlights Of 11Th IRENA Assembly
The 11th session of the International Renewable Energy Agency (IRENA) Assembly opened today.
The four day virtual event is expected to end on January 21, 2021.
The event will bring together Heads of State/Government, Ministers and energy decision-makers among its Membership and States-in-accession, as well as multilateral organisations, global stakeholders and private actors to reassess long-standing assumptions, perceived barriers and default decisions, and discuss the energy transition as an investment in our collective future.
Below are highlights of today’s High-level Panel on Energy Transition for Sustainable Post-COVID Recovery
H.E. Mr Parviz Shahbazov, Minister of Energy for Azerbaijani said the pandemic has taken a heavy toll on the energy sector worldwide. But the world pushes through with its climate ambition, with countries announcing climate neutrality targets. Azerbaijan is keen to tap into the country’s potential in solar and bioenergy. An inter-agency commission has been established to pursue the achievement of renewables targets. Other measures related to incentives and aimed at attracting investments are being put in place. Such initiatives open the opportunities for sustainable development in Azerbaijan, with close partnership between public and private sectors, he concluded.
Hon Seamus O’Regan, Minister of Natural Resources in Canada stated that the work in his country is way under way. Canada is already beating the Paris Agreement 2030 climate targets. The country is planning to phase out electricity from coal by the end of this decade and is investing in new sources of electricity generation to achieve net-zero goals. In addition, the country has set a national strategy for hydrogen and plans on supporting zero emission vehicles, fund retrofits and adopt nature-based solutions for a cleaner future. “IRENA is central to all of this,” he added.
In his intervention, Mr Zhang Jianhua, who is the Director for the National Energy Administration in China said IRENA has done a good job in facilitating activities and initiatives that advance renewable energy. During the pandemic, together we face many challenges in accelerating the global energy transition, but IRENA has shown innovative ways in highlighting the pathway to a zero emission future, he added, underlying that this has proven IRENA’s position as leader in the global energy transformation. As member of IRENA, China’s renewable deployment plan is aligned with IRENA’s vision, especially since the Chinese government has announced the target to achieve climate neutrality by 2050. Renewable energy will play a key role in the journey towards that future, and strengthening cooperation with IRENA and members is one of the ways to achieve that, Mr Zhang Jianhua concluded.
Ms. Ditte Juul Jørgensen, the Director –General for European Commission stated that for Europe there is no going back to normal after the crisis. We should fund national recovery plans that are fully in line with the energy transition and climate neutrality, she continued. In this context, she outlined that the EU is developing measures to establish targets related to climate neutrality, set up strategies to advance off-shore renewable energy and identify measures for the energy transition to be just. EU is putting in place EUR 750 billion for decarbonisation measures, making sure that the investment creates jobs and improve welfare of all EU citizens, she conluded.
Mr Hae-Seok Ryu, South Korea praised IRENA’s work on hydrogen and the publication of recent reports on Green hydrogen cost reduction and Green hydrogen: A guide to policy making. He continued that the policy study has become a guidelines for policy makers to advance green hydrogen as a key element in the decarbonisation efforts. South Korea has created a net-zero 2020 action plan to achieve sustainable development and promote welfare. Mr Hae-Seok Ryu underlined the importance of partnerships and working together for global green growth, with IRENA leading the efforts.
H.E. Virginia Palmer, Principal Deputy Assistant Secretary for the Bureau of Energy Resources in the United States said that the US and its private sector are striving to be at the forefront of the race towards climate neutrality. She outlined that as pointed out by IRENA, renewables can lead in job creation in the global energy transition, and jobs increase have been seen in different clean energy initiatives and projects in the US as well. But the transition should include those people in the fossil fuels sector. The essential role that IRENA plays in advancing policies that support clean energy solutions needs to be continued and supported by Members so our collective goals can be achieved.
H.E. Mr Benoit Revaz from Switzerland congratulates Mr La Camera on quick response in adapting to the current situation and focusing on what opportunities may emerge from the COCID-19 crisis. He welcomes IRENA’s increasing attention to issues of sustainable finance.
H.E. Mr Tan See Leng, Minister in the Prime Minister’s Office, Second Minister for Trade and Industry and Second Minister for Manpower, Singapore said it is important for the global community to prioritise on faster energy transition. “To achieve that, we need to live green, to power green, and to develop green market structure,” he underlined. He assured that Singapore will continue to invest in research and development in the area of sustainable energy, as well as to enhance collaboration with market players. “Singapore is committed to do its part in the ASEAN region, and the global community,” he concluded.
Speaking to how African needs can be reflected in the climate and energy discussion, Damilola Ogunbiyi, said that it is important for Africa to be part of every conversation on energy transitions. “It is not just about offering a solar lamp. Renewable energy is about energy for economic growth in Africa. The young African teenager has the same aspirations as the Chinese teenager or the American teenager. Globally we have to commit to Africa.”
EU Energy Commissioner Kadri Simson, says 2020 has been an encouraging year. “So many countries have become more invested in climate action. In the EU we believe in leading by example. By doing so we can show that this is an effective way to stimulate the economy, create jobs and lower energy bills across Europe and the world. I am certain that this year will be the year when we invest a lot in renewables both under state budgets and private sector.”
H.E. Mr Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Infrastructure, United Arab Emirates said it is premature to say how the pandemic will further impact the energy sector. At least we know that there is less energy use during the pandemic. As with other countries, one of UAE’s energy objectives is energy security, and reducing energy intensity is one way to achieve it. Using less energy is also the cheapest way to conserve the planet, he concluded.
Mr Makhtar Diop, Vice-President for Infrastructure, World Bank, said that there should be an alignment between nationally determined contributions with the global climate target. That is why it is important to use the momentum of COP26 to review all targets and develop fitting strategies and plan to implement them. He is also optimistic that public fund can leverage and mobilise institutional capital, as found by IRENA in its study last year. World Bank is going in that direction, to make sure that public policies are very much aligned with the direction of private investment to realise the energy transition that the world envisions.
Mr Todd Stern, Former Special Envoy for Climate Change, USA said “the consensus to hold temperature to 1.5 degree Celsius is creating the pressure for all of us to get to net-zero by 2050,” he stated. Mr Stern progressed to outline that he expects the US to be coming back aggressively with a robust climate end energy plans under under President-elect Biden. A large green recovery programme will be in place with a core focus on energy transition. The targets will include achieving climate neutrality by 2050, 100 per cent clean electricity by 2035 and a focus on just transition. “It is ambitious, but I think it is doable,” affirms Stern. “It is a very positive picture in the US. The focus on climate change has never been this high.”
Ms Damilola Ogunbiyi, CEO, Special Representative of the UNSG for Sustainable Energy for All and Co-Chair of UN-Energy underlines the importance of energy transition for all – transition that does not leave anyone behind. IRENA is a key part of the dialogue on energy transition moving forward. ” We are all connected and we are not on track,” she said. “It is important that we globally come together and play our part to get people out from energy poverty and create a sustainable energy pathway forward,” she concluded.
UAE Energy Minister Suhail al Mazrouei says the UAE is a true believer in the need for transition. He notes that the UAE is targeting 44 per cent renewables by 2030 and an additional 6 per cent from nuclear. The Minister notes that the Emirates is currently updating their energy strategy and that he is ‘excited’ by the falling costs of renewables being witnessed in the UAE. “I expect, given the prices that I am seeing, we may increase our targets for renewable energy.”
Energy Transition is the current issue in view of sustainable development and post-COVID19 recovery, said H.E. Ms Mila Aziable, Minister Delegate to the President of the Republic in charge of Energy and Mines, Togo. Renewables are more crucial than ever before to strive new technologies and decentralised electrification at affordable price, she concluded.
In his intervention, H.E. Mr João Pedro Matos Fernandes, Minister for Environment and Climate Action, Portugal said the country is fully aligned with European mission. He underlined that already 57% of electricity generation in 2019 was renewable, and the country very successfully launched solar PV auctions and is involved in efforts to scale up production of green hydrogen needed for decarbonisation of hard to abate sectors.
H.E. Ms Kadri Simson, Commissioner for Energy, European Union, stated that when it comes to energy, we don’t have to go back to normal. Our old normal has been leading us to irreversible damage to our planet. By investing into renewable energy sources, we want to reduce energy costs, improve air quality, create jobs and become a powerhouse for clean energy innovation.
Ms Simson emphasised that the path towards global energy transition is full of challenges especially since COVID-19, but this is where a strong cooperation is needed. There is a plan in Europe to give strong support to green hydrogen, as it will help accelerate the pace of the transition.
H.E. Mr Aziz Rabbah, Minister of Energy, Mines and Environment, Morocco, said that the government is convinced that renewable energy can help solve the problem of energy access in his country. Morocco is increasing cooperation with other countries to support each other in scaling up renewables.
Andreas Feicht, State Secretary at the Federal Ministry for Economic Affairs and Energy, Germany, outlined how this crisis is a challenge, but it also provides a refreshing momentum for clean energy transition. IRENA plays the leading role in this momentum as renewables have become more and more effective and efficient around the world, he underlined.
He progress to show how renewables have been our number one size for generating electricity in Germany. Yet, it is not time to bring energy transition to other industries and sectors. The government of Germany is convinced that green hydrogen can be the key for full decarbonisation. That is why Germany has created a framework to create and advance the market for green hydrogen, he concluded.
In her remarks, H.E. Ms Andrea Meza, Minister of Energy and Environment, Costa Rica shared how energy transition can accelerate the economic growth in our countries. Costa Rica has just finished a process of updating NDCs, with the national goal to achieve 100% renewable energy in energy mix without putting energy security at risk. The country is demonstrating it is possible already with 99% renewables in its energy mix in 2019. Ms Meza underlined that country is now promoting electrification of mobility “good for the economy, good for the people, good for the environment.”
H.E. Mr Raj Kumar Singh tells the IRENA Assembly that “My vision is to electrify India’s economy and to green our energy. We plan 11-12 million electric vehicles by 2030. We are a large country that is growing rapidly – this growth provides us with the space for a rapid transition. Indeed, we have the fastest growing renewable energy capacity in the world today.”
Assembly President Teresa Ribera, Deputy Prime Minister of Spain and Minister for Ecological Transition said all over the world, we are seeing countries pledging their climate neutrality goals by 2050. She notes that governments and societies are striving to deliver safer and more prosperous societies as we recover from this crisis. Ms. Ribera urges governments to prioritise a just, balanced, inclusive transition that is aligns global recovery efforts with climate goals.
UAE Climate Change and Environment Minister, Dr Abdullah Al Nuaimi reaffirms the UAE’s commitment to IRENA’s work and applauds the Agency’s growing influence around the world as the intergovernmental agency for the energy transformation, “IRENA has seen exceptional growth from 83 members to 163 members with a further 21 countries in the process of accession”.
The Minister also outlined that the UAE’s updated NDCs includes an aim to develop the region’s first commercial carbon capture, utilization and storage programme and to increase the share of clean energy to 50 per cent by 2050.
In his remarks, H.E. Mr Antonio Guterres, UN Secretary-General addresses the energy challenges that led to the establishment of the ‘High-level Dialogue on Energy’ to be convened in September, underlining the importance of SDG7: to achieve universal access to energy and IRENA’s role in driving energy transformation globally.