Norway Employs West Hercules Rig To Find Dry Well For CO2 Storage
Norwegian multinational oil company, Equinor, as well as Shell and Total have begun drilling the 31/5-7 Eos wildcat well to investigate whether the reservoir in the deep Johansen Formation was suitable for storage of carbon dioxide (CO2) as part of the Northern Lights project.
The Norwegian Petroleum Directorate (NPD) said on Thursday that this would be the first exploration well drilled where the objective was not to find oil or gas.
The well is being drilled south of the Troll field in the North Sea using Seadrill’s West Hercules rig. The Johansen Formation is situated at a depth of around 2,700 meters in the relevant area.
According to the NPD, this will be the first well to be drilled in exploitation license 001, and the objective of the well is to prove sandstone and the storage potential for CO2 in the Cook and Johansen geological formations.
If the well indicates good reservoir properties, and a decision is subsequently made to use the formations for CO2 storage, the first CO2 injector will be drilled as a sidetrack from the wildcat well.
NPD assistant director exploration Wenche Tjelta Johansen said: “In Norway, we have lots of experience and good expertise when it comes to safe storage of CO2 under the seabed.”
Since 1996, CO2 has been removed from the Sleipner Vest gas and injected in the Utsira Formation. One million tonnes of CO2 is stored subsurface every year.
Since 2007, 700,000 tonnes of CO2 per year have also been stored at the Snøhvit field. It is separated from the gas in the processing facility on Melkøya before it is sent by pipeline down into a reservoir located around 140 kilometers from land.
It is worth noting that estimates show that, in theory, the reservoir volume on the Norwegian shelf could accommodate more than 80 billion tonnes of carbon dioxide, which is equivalent to 1,000 years of Norwegian CO2 emissions at the current level.
The Northern Lights drilling is part of the Norwegian full-scale project for capture, transport, and storage of CO2.
This project includes the capture of CO2 from two industrial firms in Eastern Norway, as well as transport of liquid CO2 to a terminal in Western Norway. From there, the liquid CO2 will be transported via pipeline and pumped into a reservoir at a depth of nearly 3,000 meters under the North Sea, where it will be permanently stored.
To remind, the authorities gave Equinor and its partners an exploitation license for storage of CO2 in January this year.
According to the plan, Northern Lights will submit a plan for development and operation in the spring.
If the development plan gets a green light, Northern Lights has made a commitment to store 1.5 million tonnes of CO2 for the authorities, every year for 25 years.
Also, Equinor received consent from the Petroleum Safety Authority (PSA) to drill an exploration well for CO₂ verification in the North Sea using the West Hercules rig in late September.
Source: www.energynewsafrica.com
Springfield E&P CEO, Aliko Dangote Of Nigeria Among Top 25 Movers & Shakers List
The CEO of Springfield E&P, an independent Ghanaian upstream player has been selected among the top 25 ‘Movers and Shakers’ list to watch by the continent energy body, African Energy Chamber.
Kelvin Okyere’s Springfield E&P recently discovered significant oil at its Deepwater block in the western part of the West African nation.
The African Energy Chamber’s list profiles key individuals who stand to contribute significantly in shaping the continent’s energy economy.
The list, not confined to actors from the continent, features key industry deal makers such as Alinko Dangote, Chairman of the Dangote Group, which is nearing completion of its 650,000 bpd Lagos-based game-changing refinery; United States President Donald J. Trump, whose America-first oil politics is likely to affect global prices and the appetite of American majors to look outside; Ghana’s Kevin Okyere who sits on one of the continent’s most promising assets after his Company Springfield’s West Cape Three Points Block 2 discovery, and many more.
“With this list, we hope to put all key role players to task. We want to challenge them and pose the questions: What’s next? Are you going to deliver on your plans and promises? How will you and your organisation contribute to the development of Africa’s oil and gas sector?” NJ Ayuk, Executive Chairman of the African Energy Chamber and author of Amazon best-selling book, ‘Billions at Play: The Future of African Energy and Doing Deals’ said in a statement copied to energynewsafrica.com after the launching in South Africa.
“This year alone, the continent has seen improved cooperation and investment, large scale discoveries, world-scale projects coming online that make Africa the world’s hottest oil and gas frontier. The next step is to find out how we can maintain this momentum and the people on this list can certainly provide answers. Africans should demand more from them,” he added.
The Top 25 ‘Movers and Shakers to Watch’ list forms part of the African Energy Chamber’s African Energy Outlook which has set out to provide a comprehensive overview of the oil and gas sector across sub-Saharan Africa, focusing on strategic, operational and investment trends in the industry.
“We watch developments in the industry closely and speak to a wide range of stakeholders. What we have noticed is that a new breed of African oil men and women are playing an even greater role in the development of the continent’s resources, including resources mobilised on the continent. This is a trend we applaud. However, cooperation with international partners who still possess the technology needed to successfully undertake projects is very welcome,” Mickael Vogel, Director of Strategy at the African Energy Chamber, said.
Below is the list of Top 25 ‘Movers & Shakers’
- ALIKO DANGOTE CHAIRMAN, DANGOTE GROUP
- KELVIN OKYERE, FOUNDER & CEO, SPRINGFIELD GROUP, GHANA
- DONALD J. TRUMP PRESIDENT OF THE UNITED STATES PRESIDENT DONALD TRUMP
- MOHAMMAD SANUSI BARKINDO SECRETARY GENERAL, OPEC
- DIAMANTINO PEDRO AZEVEDO MINISTER OF MINERAL RESOURCES AND PETROLEUM, ANGOLA
- NOËL MBOUMBA MINISTER OF MINES, PETROLEUM, HYDROCARBONS AND GAS, GABON
- KOLA KARIM CHAIRMAN, SHORELINE ENERGY
- IRENE MULONI MINISTER OF ENERGY AND MINERAL DEVELOPMENT, UGANDA
- MUSTAFA SANALLA CHAIRMAN, NATIONAL OIL CORPORATION, LIBYA
- DR OMAR MITHÁ CHAIRMAN & CEO, ENH MOZAMBIQUE
- PATRICK POUYANNÉ CHAIRMAN & CEO, TOTAL
- MACKY SALL PRESIDENT OF SENEGAL
- GABRIEL MBAGA OBIANG LIMA MINISTER OF MINES AND HYDROCARBONS, EQUATORIAL GUINEA
- GUIDO BRUSCO EXECUTIVE VICE PRESIDENT SUB-SAHARAN AFRICA, ENI
- CATHERINE NORMAN MANAGING DIRECTOR, FAR LTD
- ANDREW G. INGLIS CEO, KOSMOS ENERGY
- AIDAN HEAVEY FOUNDER, BORU ENERGY
- BENEDICT OKEY ORAMAH PRESIDENT AND CHAIRMAN, AFREXIMBANK
- KAMEL EDDINE CHIKHI CEO, SONATRACH, ALGERIA
- PRINCE ARTHUR EZE CHAIRMAN, ATLAS ORANTO INTERNATIONAL/ORANTO PETROLEUM
- TOPE SHONUBI MANAGING DIRECTOR, SAHARA ENERGY
- MEDARD KALEMANI MINISTER OF ENERGY, TANZANIA
- AUSTIN AVURU CEO, SEPLAT PETROLEUM DEVELOPMENT CO, NIGERIA
- CATHERINE UGU IFEJIKA CHAIRMAN/CEO, BRITANNIA-U GROUP
- ABDEL FATTAH ALSISI, PRESIDENT OF EGYPT
Equatorial Guinea: Lukoil, Noble Energy Win Contracts During 2019 Bidding Round
Russian petroleum giants, Lukoil and GEPetrol, have been awarded Equatorial Guinea’s concession rights for oil, gas and mining respectively in the country.
The Ministry of Mines and Hydrocarbons announced on Tuesday and added that Noble Energy and Gepetrol were also given concession rights for Block EG-09.
The announcement took place during the Gas Exporting Countries Forum’s ‘5th Head of States Summit’ currently underway in Malabo, the Equatorial Guinea capital.
Equatorial Guinea’s Ministry of Mines and Hydrocarbons has announced the winners of the 2019 licensing round for its oil, gas and mining acreage.
Officially launched in April, the round received interest from 53 international and national companies, with 17 companies submitting official bids and seven companies awarded concessions for nine blocks.
According to a press release, Block EG-27 (formerly Block R) in the Niger Basin, was awarded to Russian energy multinational Lukoil and GEPetrol.
Block EG-23 in the Niger Basin, which hosts the Estaurolita gas discovery, was granted to WalterSmith, Hawtai Energy and GEPetrol respectively whilst EG-09 in the Duala Basin was awarded to Noble Energy and GEPetrol.
In the Rio Muni Basin, EG-18 was awarded to Africa Oil Corporation and GEPetrol; EG-03 to Vaalco Energy, Levene Energy and GEPetrol; EG-04 to Vaalco Energy, Levene Energy and GEPetrol; EG-19 to Vaalco Energy, Levene Energy and GEPetrol; Block P to Vaalco Energy, Levene Energy and GEPetrol; and Block EG-28 to GEPetrol.
In the oil rich nation’s first ever mining licensing round, 15 blocks were assigned for the exploration of gold, silver, bauxite, coltan and other precious minerals.
Blue Magnolia was awarded seven blocks for the extraction of copper, rare earth elements, platinum, gold, uranium, bauxite and plom.
The release explained that Oro Sac ACorp was awarded four blocks for the extraction of ore, silver, copper, zinc, plom and nickel, with Akoga Resources awarded two blocks for the extraction of platinum; and Manhattan Mining Investment Inc and Shefa Minerals SA been awarded one block respectively for ore extraction.
In his remarks, President Gabriel Obiang noted, “This demonstrates that Equatorial Guinea can attract significant interest of investors in the petroleum community, as well as the mining industry. Hopefully, next year, we will attract even more investments to our country.”
The release also hinted that the Ministry of Mines and Hydrocarbons has signed a cooperative agreement with Russian geological research company, Rosgeo, and Venezuelan state-owned oil company, PDVSA, for the study of prospective onshore mining area on the country’s mainland.
The Ministry aims to sign production sharing contracts as soon as possible to enter into the next phase of negotiation.
To work more collaboratively with potential investors, all of the blocks were offered on a drill-or-drop basis, with a reduction of signature bonuses to a minimum of US$1 million and elimination of all pre-qualification requirements, the press statement disclosed.
The drill-or-drop policy provides each company with an initial two-year period to explore, process seismic data, define well locations, bring in additional investment, if necessary, and begin drilling.
Only after this period, in which a company has the opportunity to evaluate and reduce its risk from the data obtained, will the company have to decide whether it wants to proceed with the exploration well or relinquish its license.
Equatorial Guinea’s next licensing round will take place in 2020 and will include a different set of criteria by which to select potential blocks and new acreage on which to bid.
Source: www.energynewsafrica.com
Equatorial Guinea: Ministry Of Mines And Hydrocarbons, Vitol Sign Strategic Partnership Agreement To Develop Gas Megahub
The Ministry of Mines and Hydrocarbons of Equatorial Guinea and Vitol, an oil and gas firm have signed a Strategic partnership and Cooperation Agreement as part of the development of Equatorial Guinea’s Gas Megahub in Punta Europa.
The agreement was signed during the 5th Gas Exporting Countries Forum Heads of State Summit taking place in Malabo (November 26-29).
The project seeks to establish a modern, flexible gas processing and export system that will service the needs of growing gas demands in the region and the global liquefied natural gas (LNG) market.
This will allow Equatorial Guinea to optimize the value of its gas production across LNG, liquefied petroleum gas, condensate and other products, as well as providing other regional producers with access to modern infrastructure and economies of scale.
“It was very important to partner with companies that share the vision of the Gas Megahub like Vitol. We are now under the implementation phase and interested parties should be ready to invest or move aside,” Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima, said in an official statement.
“Gas has a critical role to play as the energy mix evolves and Equatorial Guinea is well placed to become a key regional hub. We are delighted to be a part of this exciting initiative,” Russell Hardy, Group CEO of Vitol also commented.
Located north of Bioko Island and close to countries such as Cameroon and Nigeria, the Gas Megahub project facilitates a cross-border link with gas projects in those countries and opens the door for establishing new hubs to service the region.
The Gas Megahub reduces dependency on single upstream producers for industrial development and combined with new subsea pipelines linking the country’s Aseng, Alen and Alba fields, the project will allow gas to be re-directed to maximize efficiencies.
Utilizing the Punta Europa-Alba-Alen infrastructure, the Gas Megahub will be able to connect to new gas discoveries, drive monetization of stranded gas, increase fuel exports and boost revenues.
Total’s Mozambique LNG Project Lands $400Million Loan
Total SA’s giant Mozambique gas project will get a $400 million loan from the African Development Bank, adding to its list of backers as the East African nation works to establish a fuel-export industry.
The ADB joins a global syndicate of commercial banks, development finance institutions and export credit agencies to provide senior debt financing for the project, the lender said Tuesday.
Mozambique is counting on the $23 billion development to revive its economy after struggling to service its debts.
Financial close is expected in the first half of 2020, the ADB said in a statement. French major Total operates the liquefied natural gas project with a 26.5% interest, after snapping up Anadarko Petroleum Corp.’s African assets earlier this year.
A final investment decision was announced in June, and production is expected by 2024, Total said in September.
The project includes the development of offshore gas fields in Mozambique’s Area 1 and a two-unit liquefaction plant with capacity of 12.9 million tons a year. The site will eventually have as many as eight production units, Total Chief Executive Officer Patrick Pouyanne said last month.
Mozambique is set to become one of the largest exporters of LNG, with sales from Area 1 supplemented by an adjacent Exxon Mobil Corp. project in Area 4. The U.S. company plans to take a final investment decision on its 15.2-million-ton-a-year venture in 2020.
Dubai: DEWA Extends Free Charging Incentive For EV Drivers
Dubai Electricity and Water Authority (DEWA) has announced an extension to the current free charging incentive for electric vehicles (EVs) which is expected to expire by the end of this year, to 31 December 2021.
However, this extension only applies to non-commercial users, who have registered for the EV Green Charger Initiative.
This incentive is exclusive to DEWA public charging stations and does not include home charging stations.
Commercial registered users such as government, semi-government, and private organisations will be charged the tariff of 29 fils per kilowatt hour, effective from the 1st of January 2020.
The utility’s MD & CEO Mohammed Al Tayer, said: “We support the Smart Dubai initiative, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the happiest and smartest city in the world; the UAE Vision 2021 which aims to achieve a sustainable environment in terms of air quality, conservation of water resources, increased reliance on clean energy, and green development.
According to Al Tayer, the utility also supports the Dubai Plan 2021, to make Dubai a smart, sustainable and innovative city in managing its resources, improving its quality of life, and consolidating its position as a global model for a green economy.
“DEWA seeks to increase the number of hybrid and electric vehicles in Dubai, which supports the Dubai Green Mobility Strategy 2030 and the Dubai Carbon Abatement Strategy 2021 to reduce carbon emissions from the transportation sector,” he added.
Dubai Green Mobility Initiative
Al Tayer pointed out that under the umbrella of the Supreme Council, DEWA is working on implementing the Dubai Green Mobility Initiative to promote the use of electric and hybrid vehicles.
The Dubai Supreme Council of Energy launched this initiative as per a directive in 2016 to motivate organisations, under its umbrella, to increase the number of hybrid and electric vehicles and to contribute to the sustainable development of the Emirate by reducing carbon emissions in ground transport, which is the second-largest greenhouse gas emitter in Dubai.
Therefore, at least 10% of all newly-purchased cars will be electric or hybrid from 2016 to 2020. This supports the city’s Carbon Abatement Strategy to cut carbon emissions by 16% by 2021.
Al Tayer highlighted that ever since DEWA launched the EV Green Charger Initiative in 2015 and its associated free charging incentive, there has been a significant increase in the number of electric and hybrid vehicles in Dubai.
“Due to the positive response, we decided to extend the free charging incentive for the owners of non-commercial electric vehicles until the 31 of December 2021. The huge turnout from the community encourages us to launch further initiatives to secure a more sustainable future for generations to come,” he concluded.
Ghana: Loss Of 1000MW Of Power Causes Cuts In Electricity Supply To Many Home Nationwide
Many parts of the Republic of Ghana are without electricity supply as a result of system collapse at the power transmission company, Ghana Grid Company (GRIDCo).
Chief Executive Officer of Ghana Grid Company (GRIDCo) Ing. Jonathan Amoako-Baah told energynewsafrica.com that about 1,000 megawatts of power have, so far, been lost.
In a statement, GRIDCo announced that at 2:37pm today(Tuesday), there was a major system disturbance following power swings from the Cote d’Ivoire interconnection with Ghana, thereby, leading to outages in parts of the country.
“Power supply has been restored to most parts of the country and efforts are currently underway to restore the remaining affected areas,” the statement said.
GRIDCo apologised to all the affected communities for any inconvenience caused, adding that it remains committed to its mandate of delivering reliable power supply.
The development has prompted many social media users to question whether the West African nation has returned to the days of power outages which was christened as ‘dumsor’.
Meanwhile, a statement issued by the Electricity Company of Ghana, power distribution and retail company, attributed the current outage to a technical challenge upstream.
“Customers should please note that the situation is beyond ECG’s control, however, immediately the challenge is resolved, power supply will be restored to all affected areas,” the statement assured.
“The inconvenience is very much regretted,” the statement concluded.
05:00MT UPDATE, Tuesday November 26, 2019.
GPP
Inlet: 138.6barg @ 27.10°C
Outlet: [email protected]°C
Flowrate: 88.8MMscf/d
AIS
Inlet: [email protected]°C
Outlet: [email protected]°C
Flowrate: 81.53MMscf/d
ORF@04:00GMT
Outlet:[email protected]°C
Flowrate: 181.73MMscf/d
WAPCo
Outlet: [email protected]°C
Flowrate: 58.25MMscf/d
TRMS
Inlet: [email protected]°C
Outlet: [email protected]°C
Flowrate: 106.85MMscf/d
DVS
Inlet: [email protected]°C
Outlet: [email protected]°C
Flowrate:8.73MMscf/d
TRMS EXT
Inlet: [email protected]°C
Outlet: [email protected]°C
Flowrate:3.42MMscfd
POWER GENERATION
T-1
Unit [email protected]/d
Unit 2=Down
Steam=53MW
T-2
Unit 1= 115MW@ 26.58MMscfd
Unit 2=Down
Steam= 58MW
AMERI
Eight (8) units with total load of 200.3MW@ 42.94MMscf/d
KARPOWER
Sixteen(16) units with total load of [email protected]/d
Total Gas exiting TRMS 218.75MMscf/d.
05:00GMT WAGPCo Parameters
ITOKI
Inlet: 27.10barg
Outlet: 26.80barg
Flowrate: 77.80MMscf/d
LBCS
Inlet: –
Outlet: 46.0barg
Flowrate: –
TEMA
Inlet: 33.3barg
Outlet: 28.5barg
Flowrate: 90.69MMscf/d
Ghana: Rigworld Group Gets License To Operate In Downstream Sector
Rigworld Group, one of the leading oil and gas engineering, logistics and human resources development companies in the Republic of Ghana, has been granted a license by the petroleum downstream regulator, National Petroleum Authority (NPA) to operate as an Oil Marketing Company (OMC) in the West African nation.
This means the company can now engage in the procurement, storage and distribution of petroleum products on retail basis through fuel stations across the country, and also in bulk supplies to companies in the downstream sector of the oil and gas industry.
Hitherto, Rigworld had remained mainly in the upstream and offshore sector of the oil and gas industry, providing engineering services, logistics, training key personnel and offering a plethora of expert services across the upstream value chain.
Under the brand name, Rigworld Petroleum Services Limited (RPSL), the company said it would revolutionalise the OMC sector by establishing state-of-the-art fuel stations in selected areas across the country, and offering innovative services.
“RPSL has two major business arms – the retail business stations that focus on the development and construction of our innovative stations where petroleum products would be retailed to motoring public, and the commercial B2B (business to business unit, which focuses on direct bulk supply to industries and entities,” the company said in a statement.
Under the retail wing, the company said it will partner with individual and corporate investors to build state-of-the-art retail business outlets and also build its stations for the purpose, adding that RPSL will take petroleum retail to the next level by offering self-service, cashless payment with RPSL Fuel Card, MasterCard, Visa Card and Mobile Money.
The company noted that in the near future, RPSL will offer free air on the forecourt, Wi-Fi hotspots, and there are plans to also offer electric car charging points at RPSL fuel stations.
“Our objective is to innovate the fuel retail station offerings and give our customers an experience second to none in the industry, while expanding our retail presence on a selective basis nationwide,” the company said.
On the commercial bulk supply front, the company said it is proactively exploring and developing business relationships corporate clients for the supply of fuel for their operations.
The industries in focus include manufacturing, mining, construction, oil and gas, and bunkering, adding that the intent is to supply those industries with quality products at the most competitive prices.
Speaking of bunkering, RSPL said “we have positioned ourselves to be the company of choice for marine bunkering services arising from our strategic partnership with key players in the downstream sector, backed by qualified staff who are in readiness to meet customer demands both onshore and offshore.”
RPSL is just one more cap in the feather of the Rigworld Group, which include the Rigworld Training Centre and Rigworld Solutions among others.
Rigworld Training Centre, located at the Takoradi, develops human resource capacity for the oil and gas industry in Ghana and across the West African sub-region; while Rigworld Solutions remains a leader in the supply of essential logistics such as stud bolts and nuts, as well as high and low pressure hydraulic hoses for the industry.
Renewable Investment Falls In Emerging Markets
New energy investment in emerging economies slipped last year to US$133 billion, far from the 2017 record of US$169 billion, mostly due to a slowdown in China, BloombergNEF said in its annual Climate scope report on Monday.
China, because of is massive share in new clean energy investments globally, was responsible for the majority of the decline in investments, according to BloombergNEF’s findings.
Investment in new-build solar, wind, biomass, wind, small hydro, geothermal, and biofuels capacity in China fell to US$86 billion in 2018 from US$122 billion in 2017, the report showed. Other major markets, including India and Brazil, also saw annual declines in new clean energy investments, BloombergNEF said.
After three years of solar dominance in new clean energy investments, wind took over last year and accounted for 51 percent of total investments in 2018 compared to 47 percent for solar.
China shocked the markets in June 2018 by announcing that it would not issue approvals for any new solar power installations in 2018 and would also cut subsidies. The major shift in Chinese solar policies led to a marked slowdown in investments in new capacity.
Excluding China, India, and Brazil, clean energy investment in emerging markets rose in 2018 to a record US$34 billion, from US$30 billion in 2017, according to BloombergNEF.
Although new construction of coal-fired power plants in emerging markets dropped to the lowest level in a decade, coal-fired power generation jumped by 7 percent in 2018 compared to 2017—the highest annual rise since 2013, the report noted. Coal-fired electricity generation has surged by 54 percent since the beginning of this decade, while last year, as much as 47 percent of all power produced in developing economies came from burning coal, BloombergNEF said.
Despite progress in many economies and continued construction and deployment of clean energy “the transition is not moving nearly fast enough to address the climate challenge,” BloombergNEF’s report warns. Fossil fuels were the main technology deployed in nearly half the 83 markets which saw capacity growth in 2018.
Equatorial Guinea: Seven Swire Workers Kidnapped In Pirate Attack
Offshore vessel operator Swire Pacific Offshore has announced that seven crew members aboard its Pacific Warden anchor handler were kidnapped by pirates offshore Equatorial Guinea last week.
“Swire Pacific Offshore (SPO) confirms that the Pacific Warden, an Anchor Handling Tug Supply Vessel (AHTS), was attacked offshore Equatorial Guinea on 20 November 2019 at approximately 05:00 local time. The vessel was supporting offshore field operations in Equatorial Guinea,” Swire said in a statement.
According to Swire, there were 15 crew members on board at the time of the pirate attack.
“Eight [crew members of the Pacific Warden] are safely ashore and unharmed. Seven crew members were taken by the attackers and are missing. The local authorities and the Navy of Equatorial Guinea responded quickly to the incident,” the statement said.
“The safety of the people on board our vessel is always our top priority. SPO will do everything possible to secure the safe and timely return of the missing crew members, in coordination with their families and relevant authorities. SPO has no further details at present and asks that the media respect the privacy of the affected crew members’ families at this difficult time,” the company said in a statement.
Nigerian pirates?
Commenting on the incident, Dryad, a maritime intelligence company, said that – based on reports – the Pacific Warden was attacked by two speed boats when transiting from Luba, Boiko island to Serpentina /Zafiro field complex.
Dryad said: “This is the third kidnapping incident within 30nm of the western side of Bioko Island within 2019 with two additional incidents involving vessels being fired upon at a distance of 50nm. It is assessed that the piracy conducted in this area originates from within Nigerian waters. The PAG [Pirate Action Group] involved is believed to be a well-established grouping with significant resources and the capacity to conduct deep offshore operations via a mothership vessel.
“It is assessed that the PAG involved is seeking to conduct operations beyond the Nigerian EEZ seeking to exploit the relative absence of established security presence in the 60nm channel between the Nigerian EEZ and Bioko. All incidents within 2019 in this area have involved offshore support vessels with particularly vulnerable vessel parameters,” Dryad said last week.
Qatar: GECF Hosts African Ambassadors Group Conference
The Gas Exporting Countries Forum Secretariat hosted the African Ambassadors Group, a conference dedicated to Energy on the African Continent.
The event was attended by Ambassadors and members of diplomatic missions to the State of Qatar, representing about 20 countries of the African continent.
The event was opened by HE Felizwe Dlamini, Ambassador of the Kingdom of Swaziland and the President of the African Ambassadors Group, who welcomed the participants.
From the GECF side, the event was represented by Dr. Hussein Moghaddam, Senior Energy Forecast Analyst, who delivered a speech and shared a presentation dedicated to gas forecasts in Africa.
Two keynote speeches were delivered by HE Dr. Bashir Issa Al-Shirawi, former Qatar Ambassador to the Republic of South Africa, who shared his opinion on Africa and its resources.
The second keynote speech was delivered by Dr. Benjamin Auge, Chief Editor of Africa Energy Intelligence, who provided insight on the way forward for Africa’s oil and gas industry and various investment decision affecting it.
The meeting was followed by a fruitful panel discussion which covered energy related issues. The conference and discussion was facilitated by Mr. Abdu-Raof Hanslo, an economic commentator and Editor-in-chief of the South African Finance Times.
Africa has received special attention in the new edition of the GECF Global Gas Outlook, to be released in January 2020. Natural gas represents a good tool for energy poverty alleviation in Africa, considering the continent’s abundance and geographical spread of this resource.
Last year, Africa accounted for only 6% of global energy demand, and little more than 3% of electricity demand.
According to the GECF Global Gas Outlook, in 2050, energy and electricity demand will increase by an overall of 126% of which 85% will be in Africa, respectively.
Natural gas constituted 15% of Africa’s energy mix in 2018. However, gas has a great potential to provide 380 bcm of Africa’s energy demand by 2050, considering the continent’s abundance and geographical spread of this resource. From the supply side, Africa accounts for 6% of global marketed gas production today and with 620 bcm production, will account for 10% by 2050.
HE Faizel Moosa, Ambassador of South Africa to Qatar thanked the speakers and the GECF Secretariat for hosting the event and making it a resounding success.
The GECF welcomes potential new Members and Observers from the continent and is looking forward to hold similar events in the future.
Ghana: Understanding The Factors Limiting The Productive Use Of Energy (PUE) In Rural Communities
By: Paa Kwasi Anamua Sakyi
There is an ongoing debate on how best to provide electricity for income generating activities to the 1.1 billion people currently without access to electricity — of whom 600 million are living in Sub-Saharan Africa, many of them in rural areas. The electrification rates in rural communities in sub-Saharan Africa average 16 percent, compared to 99 percent in North African countries and 71 percent in South Africa (Toman and Peters, 2017, Practical Action 2012).
Lack of access to electricity have been identified as a major constraint to economic growth and increased welfare in developing countries. This has been reemphasized by the United Nations and the World Bank Group as co-chairs of the global Sustainable Energy for All (SE4All) initiative, which was launched in 2011, with the goal of achieving universal access to energy within the next 15 years.
Since 2014 the number of people without access to power in SSA has declined, as electrification efforts have surpassed population growth (Tagliapietra, 2015). According to an Independent Evaluation Group 2015 report commissioned by the World Bank, low-access countries received about US$3.6 billion on annual basis into the electricity sector from all sources between the period 2000 and 2014. A substantial part of these funds was allocated to extension of the traditional electricity grid (Foster and Briceño-Garmendia, 2010). This level of investment in grid extension, according to Toman and Peters (2017), is politically popular in many donor organizations and national governments, including those in Africa.
The extension of grid electrification is seen rightly as a key part of the infrastructure development needed to achieve the economic transformation required for achieving the standard of living of industrialized countries (Toman and Peters, 2017). The arguments are that modern energy use may enable the poor in developing countries to engage in improved or new income-generating activities often called ‘productive use of energy’ (PUE), as opposed to ‘consumptive use’, thereby eventually leading to an improvement in their living conditions (UNDP/WHO 2009, Practical Action 2012).
“Productive Use of Energy” Defined
The Food and Agriculture Organization (FAO) in conjunction with the Global Environment Facility (GEF), in the context of providing modern energy services in rural areas, defines productive use of energy as one that involves the application of energy derived mainly from renewable resources to create goods and/or services either directly or indirectly for the production of income or value (White, 2002). While this definition is originally meant to consider only renewable energy, many researchers including Short (2015) and (Cabraal, 2005) applies it to all forms of energy.
In Cabraal (2005) productive uses were viewed as uses which improved the economic situation — increased production, higher employment, et cetera leading to higher incomes. Short (2015) refers to any use resulting in the production of income as an economic use of electricity. Also according to the German development agency GIZ, productive uses of electricity are those that increase income or productivity.
Therefore any use of electricity that generates income or value for the user is considered as productive use of electricity; from artisanal activities to large-scale commercial and industrial processing of agricultural products.
Productive uses of energy can assist women, in particular, to earn income and improve their quality of life, through the use of lighting to extend opportunities for cottage industries in the home and electrical equipment in activities such as baking and ceramics. Electrical equipment helps women save time and labor and creates opportunities for education, socializing, and communication (White 2002; Cabraal, Barnes, and Agarwaal 2005).
Examples of Productive Uses
Applying electrical equipment to production increases productivity and income by extending product life through electrical equipment for drying, refrigeration, freezing, and packaging; raising output, standardizing product quality and cutting costs; replacing less-efficient equipment (e.g., diesel-powered motors); expanding access to information about markets and technologies; and creating jobs (World Bank Group, 2017). The simplest productive use of electricity according to Fishbein (2003), is the extension of working hours of restaurants, shops, clinics, schools, and artisanal businesses. Other common uses include the provision of cooling and refrigeration, heat, and motive power for agriculture, small industry, or commerce (Fishbein 2003).
Finucane, Bogach, and Garcia (2012) provides other range of production processes as shown below:
Agriculture
- Pumps (groundwater, surface water)
- Modern irrigation (sprinkler, drip)
- Processing centers for coffee, cereals, root crops, fruit
- Grain and rice mills
- Crop drying
- Centers for processing and storing dairy products and meat
- Heated shelters, feed mixing and processing
- Soldering equipment, saws, lathes, and sanders
- Lights, fans, ovens, mixers, cook-stoves
- Sewing machines
- Limited market opportunities – The local market may lack the capacity to absorb the expected growth in production from use of electrical equipment for revenue generation.
- Limited access to information – Producers may not have the requisite knowledge about potential business opportunities or potential electricity uses, and technology options like electrical equipment brands, types, sizes, local availability etc., or how to connect to the grid.
- Lack of technical and management skill – Producers may lack the know-how even as they adopt a new technology. They also lack the skills to present a business plan to financing institutions, and qualified technicians to maintain electrical equipment may be scarce.
- High investment costs and limited financing – Producers may face high upfront costs for grid connection and new equipment, and credit to finance those costs may not be available in some rural areas.
- Unreliable electricity service – An unreliable grid poses threats to electrical equipment from voltage fluctuations and interruptions and can prevent realizing a return on investment in electrical equipment.
- Physical limitations of rural grids – Most rural distribution systems use single-phase circuits (two-wire configurations with a neutral conductor or single-wire earth return). Such lines can only accommodate small-scale applications such as sewing machines and refrigerators. However, the motors needed for many productive uses can create problems on such systems.
- Minimal service by rural utilities – Utilities serving rural areas often provide minimal service, focusing on connections, billing, and collection. Many have no staff to help rural producers select electrical equipment or design connections and facilities.
- Low distribution company revenues and viability in rural areas – Utilities often incur high costs but earn low revenues in rural areas owing to a combination of low levels of demand, the lack of cost-reflective tariffs and the absence of compensating subsidies. The result is poor service quality and minimal service.
- Tariff issues – Rural tariffs may not fully cover costs, discouraging utilities from promoting demand. Tariff structures may also discourage productive uses of electricity.
- Electrification targets and system designs that focus on access and ignore motorized uses – When programs focus only on numbers of connections, system designs often use least-cost single-phase or single-wire earth return distribution lines. As noted earlier, such lines often limit the use of motors that are essential for common applications such as grinding, milling, pumping, and sawing.
- Lack of evidence linking productive uses of electricity to socioeconomic development – There is a lack of data and evidence-based conclusions on the broader effects — on income generation, health, and education — of expanding the productive use of electricity.
- Electrification seen as an end in itself – Rural electrification must be seen not as an end, but as a means of promoting rural development and the well-being of rural populations.
- Lack of coordination with other development efforts – Too often, electrification is not coordinated with efforts in other sectors, such as health, education, agricultural extension, or small-industry development programs.