Ghana: Expect Increment In Fuel Prices In June–IES To Consumers

Michael Creg Afful
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Ghana: Expect Increment In Fuel Prices In June–IES To Consumers
Consumers of petroleum products in the Republic of Ghana should be prepared to pay more for the fuel at the pumps in the first pricing window in June, Institute for Energy Security (IES) has said. The energy think tank said per its analysis, it expects the prices of fuel on the domestic market to go above April 2020 levels. “Going by the 23.25 percent surge in price of Brent crude oil, in addition to the 41.80 percent and 22.68 percent significant rise in the prices of gasoline and gasoil respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market going up, and above April 2020 levels,” it said in a statement.
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It added, “The marginal depreciation of the local currency would also be another determinant for the Bulk Distribution Companies (BDCs) in selling to the OMCs, and that would definitely reflect at the pump.” A litre each of petrol and diesel is currently sold for GHc4.1.

Ghana: Two Tullow Ghana Workers Test Positive For Coronavirus

Michael Creg Afful
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Ghana: Two Tullow Ghana Workers Test Positive For Coronavirus
Two subcontractors working with Tullow Ghana, a subsidiary of London- based Tullow Oil Plc have contracted novel Coronavirus. A company statement which confirmed the Covid-19 case said the two were tested by the Ghana Health Service (GHS) after exhibiting some symptoms of the contagious disease. “Tullow Ghana reports that on 21 May, two subcontractors working in the field displayed suspected COVID-19 symptoms and were medically evacuated to a government-approved quarantine facility and tested,” the statement said. It added: “The Ghana Health Service (GHS) has confirmed initial test results as positive for the COVID-19 virus. The affected individuals are in good health but remain in isolation onshore and will continue to be monitored and tested.
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“Following the positive test results, a team from GHS has commenced contact tracing and testing of personnel on the KNK FPSO and MV Lancelot, in line with established protocols”. Tullow assured all stakeholders that the health and safety of its staff, contractors, sub-contractors as well as host communities remain a priority. “Tullow has followed strict quarantine procedures for all personnel working offshore including two weeks of government-approved quarantine. We will be assessing further actions that may be available to reduce the risk of infection,” the statement explained. “Tullow Ghana reiterates its commitment to the WHO and GHS safety protocols and procedures to limit the risk of spreading Covid-19.” The oil company added that “oil and gas production on board the Jubilee FPSO is unaffected. Also, no cases of COVID-19 have been identified on the TEN FPSO.” Holding Statement-Covid-19_case__26_May (1)

Ghana: COVID-19: Maranatha Oil Services Donates GHC100,000 In Support Of Infectious Diseases Treatment Facility

Michael Creg Afful
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Ghana: COVID-19: Maranatha Oil Services Donates GHC100,000 In Support Of Infectious Diseases Treatment Facility
Maranatha Oil Services Limited has made a donation of GHC100, 000 to support the construction of Ghana’s first infectious disease isolation and treatment facility. The 100-bed facility which is under construction at the Ga East Municipal Hospital is the brain child of the Ghana Covid-19 Private Sector Fund in support of government’s efforts to contain the spread of the novel coronavirus in Ghana. The West African nation has recorded 7,303 cases of Coronavirus with 2,402 recoveries with 34 deaths. Board Chairman of Maranatha Oil Services Limited, MacBride Yoofi Hayford, says the donation was in recognition of the fact that the facility is a legacy project which will survive the Covid-19 pandemic and serve future generations. “The moment we heard about this project, we knew that this is the project that we could [support] because we thought that it was a novel idea,” he said on a visit to the project site at the Ga East Hospital. “We thought that that is a project that we needed to be part of. The moment the idea came from management, the board straight away approved it.” Mr. Hayford added: “Coming here, having seen what has been done we are really impressed and it tells us that the funds that we are giving will help complete the project and we will urge other private companies to also come on board and contribute their quota to the completion of the project.” Managing Trustee for the Ghana Covid-19 Private Sector Fund, Senyo Hosi, received the donation from Maranatha Oil and assured that it will be put to good use for the benefit of all Ghanaians. “On behalf of the Trustees of the Fund and all the hard-working volunteers and workers we have on site, I want to say a big thank you for this vote of confidence in this project and in our steering of affairs,” Mr. Hosi said. “We assure you these funds will be put to good use and will deliver on this mandate and task that we have set up for.” When completed, the infectious disease treatment facility, located at the Ga East Hospital in Accra, will serve as a treatment centre for critically-ill Covid-19 patients. When the Covid-19 pandemic ends, it will be used to offer treatment for people afflicted by other infectious diseases. The Ghana Covid-19 Private Sector Fund, which is sponsoring the project, hopes to construct similar facilities in Kumasi, Takoradi and Tamale.

Consumers Must Brace For A Rough Ride As Oil Price Sets To Swing In Favour Of Producers (Article)

Michael Creg Afful
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Consumers Must Brace For A Rough Ride As Oil Price Sets To Swing In Favour Of Producers (Article)
By: Nana Amoasi VII, IES Crude oil prices have slumped in 2020, with global benchmark hitting a 21-year low below US$16 per barrel in April. On Monday April 20, West Texas Intermediate (WTI) crude price fell by more than US$50 per barrel to close the day’s trading at negative US$30-plus; first time oil price have turned negative. The price slumps has taken place against price directions as forecasted by investment houses, oil majors, banks, research analysts and consultants. Key energy think-tanks, oil trading companies and financial services firms such as the US Energy Information Administration (EIA) and Fitch Solutions were convinced that Brent crude price could average US$61+ per barrel in 2020, seeing the year open with a price of roughly US$66.25 per barrel. The spread of the coronavirus (COVID-19) emanating from China and spreading to other parts of the world significantly dented demand for crude and finished products, due to restrictions imposed. The price war Saudi Arabia and Russia that followed supply cut disagreement worsened the situation, resulting into pronounced build-up of oil stocks around the globe, and plunging prices deeper. While the drop in prices favoured oil consumers (demand side), the development have overwhelmed the already troubled oil industry (supply side), and even oil producing countries, as they depend on oil revenue to support their national budgets. Impacts On Supply Side Low oil price environment impact massively on operating performance of upstream oil and gas companies, which typically reduces their ability to invest in additional capital investment, decreases the incentives for upstream investment spending, delaying or cancelling new projects, and cutting back on dividend payments et cetera (EIA 2015; Kaiser and Pulsipher 2006). Since the coronavirus pandemic took hold and sent oil prices tumbling, oil companies have been slashing exploration and production budgets, cutting back on dividends and jobs by the hour; as many of their operations are unsustainable and deep in the red at US$30 per barrel for particularly WTI crude. Oil majors such as ExxonMobil, Chevron, Shell and BP including many others were compelled to re-evaluate their capital expenditure (Capex) and operating expenditures (Opex), with multi-billion dollar projects likely to be in limbo. Apache Corporation, Devon Energy, and Murphy Oil have all announced slashing their 2020 capital investment plan by a massive 30 percent or more, amid the latest collapse in oil prices. Apache indicates that it would cut its budget by more than 37 percent from a US$1.6 billion-US$1.9 billion range, and slashed 90 percent of its dividend payment to investors, from 25 cents per share each quarter down to 2.5 cents per share. Murphy Oil Corporation, though is maintaining its commitment to dividend payment, announced slashing its capital expenditure plan for 2020 by 35 percent (S&P Global, 2020). Bloomberg reports that Occidental Petroleum have had to slashes its quarterly dividend to 11 cents a share from 79 cents, and rein in spending this year by about 32 percent to about US$3.6 billion. Tens of thousands of oil workers including Texans are being laid off across the US, in places like the Permian Basin shale fields in west Texas as companies shut down their drilling rigs, according to Ryan Sitton, a state oil and gas regulator. Drilling service company Canary LLC has already cut 43 workers, with Recoil Oilfield Services laying off 50 workers after the water-transfer company lost all of its work with shale giant EOG Resources Inc. The biggest blow so far came from Halliburton, the world’s dominant fracking-services provider, which announced furloughing 3,500 workers at its Houston headquarters (Bloomberg, 2020). According to Rystad Energy, the shrinking workforce is the direct result of a torrent of cuts in capital spending from U.S. explorers, some US$12.6 billion so far. Ghana has so far not been spared of the devastating impact of the low oil prices and supply chain disruptions, on oil producers. In April, Aker Energy and its partners announced postponing the development of the Pecan field in the Deep Water Tano Cape Three Points (DWT/CTP) lock offshore Ghana, as a result of disruptions caused by the coronavirus pandemic. Meanwhile, Tullow Oil is encountering similar challenges at its Jubilee and TEN fields. Impact On Demand Side On the demand side, it has been such a relief for fuel consumers, as the excess oil supply resulted in low oil and fuel prices on the international market; translating into low fuel prices at the pumps. For instance, motorists in South Africa have enjoyed unprecedented fuel price savings, seeing huge decreases in fuel prices over the past few months, based on local and international factors. The international factors includes the fact that the country imports both crude and finished products based on international market prices, and the local determinants includes the Rand/US$ exchange rate exposure. The Rand have depreciated against the US Dollar over the period, however the huge decreases in the price of crude and petroleum products on the international market have translated into the huge savings for consumers. In the United Kingdom (UK), data from the Department of Business, Energy and Industrial Strategy shows that petrol prices have hit a 4-year low, selling at £1.09 per liter, thanks to the impact of the coronavirus. Also in Ghana, consumers have enjoyed some relatively low fuel prices since January 2020. Price of Petro (Gasoline) which stood at Gh¢5.36 (US$0.9) per liter in January 2020 is currently going for Gh¢4.01 per liter on average terms; suggesting roughly, a 25 percent drop in local Gasoline price since January. Pendulum Set To Swing The prices of physical crude cargoes are rallying hard across the world. On Wednesday May 20, international benchmark Brent surged to US$35.75 per barrel; the highest level since March when Saudi Arabia and Russia’s price war was launched. Brent crude traded on the intercontinental exchange (ICE) Futures Europe was reported on Thursday as nearly doubled over the past month, as it traded above US$36 per barrel, while America’s West Texas Intermediate (WTI) price has also soared.
Ghana: Make Ghana National Gas Company A Subsidiary Of GNPC – ACEP Tells Gov’t
Standard and Poor’s Global Platts benchmark for fuels also shows average Gasoline and Gasoil prices has moved upward by roughly 55 and 33 percent respectively, since May 11 when the last Pricing-window closed in Ghana. On Monday May 18, Gasoline spot price closed at US$314 per metric tonne (US$37.6 per barrel) compared to the average price of US$203 per metric tonne (US$24.3 per barrel) recorded a week earlier. Gasoil has not been spared from the upward movements, as it closed trading on Monday at US$288 per metric tonne (US$38.6 per barrel). The jump in prices is a reflection of curtailment of production to a great degree as initiated by the Organization of the Petroleum Exporting Countries, Russia and other allies known as OPEC+, and hopes that the relaxation of lockdowns around the globe will boost the demand for oil and fuels like Gasoil, Gasoline, and Jet fuel. Reuters reports that so far in May OPEC+ has cut oil exports by close to 6 million barrels, and at that there are evidence of fuel use recovery. The International Energy Agency (IEA) reports that mobility still remains limited for many citizens, but businesses are starting to reopen gradually and people are returning to work, which will provide a boost to oil demand, albeit a modest one at first. It is unclear though, but if international prices continue the surge at the current rate to top US$35 per barrel, the pain of oil producers may start to ease. Higher oil prices would enable oil producers to cover their costs; increasing expected returns from future production, and increasing their ability to invest in additional capital investment. However, fuel consumers must brace for an upward and a possible turbulent drive in next few months, should the recovery from the damage to demand on the international oil and fuel market be much quicker. Already, there are indications that the surge in the price of crude oil and petroleum product on the international market would reflect at local pumps. In Belgium for instance, the Federal Public Economy Service (FPSE) announced on Monday May 18 an increase of 2.2 Cents to a maximum of €1.275 per liter for Euro 95 (E10) petrol, and 3.1 Cents upward adjustment for Euro 98 (E5) petrol to sell at a maximum price of €1.325 per liter. This basically means that it would cost more for motorists to fill their cars in the coming weeks. Also in South Africa, the Automobile Association expects a fairly large petrol price increase in the coming June. It expects the price of petrol to go up by 50 Cents per liter on Wednesday June 3. In Ghana, the benefits consumers have so far enjoyed at the local pumps may also begin to diminish. The national average price of Gh¢4.01 per litre for Gasoline (Petrol) may be the lowest to be recorded in 2020. Consumers must be prepared to buy same at roughly Gh¢5.0 per liter in the coming weeks, since oil marketing companies (OMCs) may adjust their pump prices to reflect changes on the international market. It is insightful for consumers to note that the low fuel prices currently displaced at the pumps is basically the result of the coronavirus depressing fuel demands, and has absolutely nothing to do with government interventions. Written by Nana Amoasi VII, Institute for Energy Security (IES) ©2019 Email: [email protected] The writer has over 23 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media and CNBC Africa

Libya Loses Over $5 Billion Due To Oil Blockade

Michael Creg Afful
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Libya Loses Over $5 Billion Due To Oil Blockade
Libya’s crude oil exports have shrunk by 92 percent since the start of the oil blockade early this year. The unfortunate situation has resulted in the North African country losing some $5 billion, a statement by the National Oil Company of Libya said. A group of paramilitary formations affiliated with General Khalifa Haftar’s Libyan National Army occupied Libya’s oil export terminals in January along with pipelines and fields. The blockade came amid continued fighting between the LNA, which is loyal to the eastern Libyan government and the forces loyal to the Government of National Accord, which is recognized by the United Nations. Soon after the blockade, NOC declared force majeure on oil exports, with the company’s chairman Mustafa Sanalla warning that the blockade could end up costing Libya $55 million daily. At the time, the losses in production were estimated at between 500,000 bpd and 800,000 bpd. As of late January, Libya’s oil production was around 300,000 bpd but Sanalla said it could go as low as 72,000 bpd. As of early April, production was down below 100,000 bpd. That’s down from over 1.2 million bpd before the blockade. Fuel and other oil product output has meanwhile fallen to zero because refineries had to be shut down because of the blockade, too. “The first quarter of 2020 was a huge decrease in revenues for Libya, as a direct result of the illegal blockade of numerous oil and gas facilities. This is only part of the picture, as the corrosion in pipes caused by still oil and salt water is resulting in physical damage that will cost millions to fix when the crisis is over,” Sanalla said. “Libyan people across the whole country are the ones who will feel the cost of this illegal blockade. The low revenue will simply delay further any government investment in public services, the national economy, and the foundations of future prosperity for Libya,” he added.

COVID-19: Energy Experts Push For Clean Energy Transition

Michael Creg Afful
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COVID-19: Energy Experts Push For Clean Energy Transition
The world’s incredible decrease in energy consumption caused by COVID-19, and the unprecedented collapse of the oil and gas markets has led to some people arguing that 2019 was the peak for oil and clean energy will dominate in the years ahead. This and more was unpacked during a renewable energy webinar hosted by the African Energy Chamber and Africa Oil & Power on Thursday. Under the theme ‘Is now the time for renewables?’ the webinar gathered high-level speakers including Nelisiwe Magubane, Chairperson, Matleng Energy Solutions; Suzanne Jaworowski, Senior Advisor, Policy & Communications, Office of Nuclear Energy, U.S. Department of Energy; Massaer Cisse, General Manager, Lekela Power Senegal and Dr Clinton Carter-Brown, Head of the Energy Centre, South African Council for Scientific and Industrial Research. The session highlighted the impact of COVID-19 on global renewable energy development discussions. According to Massaer Cissé: “COVID-19 has sparked a new discussion on the importance of renewables and we can expect renewable energy to be central topic in all conversations to come. According to the International Energy Agency, 72% of all installed power capacity globally in 2019 originated from renewable energy, and it expects it to grow in 2020, despite the pandemic. COVID-19 is by definition a shock but it’s a temporary event. The long-term trends preexisting prior to the pandemic remain true today. Renewable energies are now very competitive and are able to function without subsidies. Africa’s impact is relatively small on the global scale for global warming and climate change; however, we are primarily impacted. Therefore, Africa has a responsibility, beyond economic considerations, to contribute to finding solutions. I believe the renewable energy outlook remains very positive.” https://energynewsafrica.com/index.php/2020/05/23/top-12-listed-oil-giants-book-huge-20-6-billion-loss-in-first-quarter/ Nelisiwe Magubane, from Matleng Energy Solutions, expressed concerns around the pandemic encouraging countries to halt the race to renewables and focus on indigenous assets, including fossil fuels: “We have seen countries having more nationalistic agendas in order to protect their assets and revitalize their economies, thus translating to the use of more indigenous resources. Africa is well-endowed with renewable energy resources and it has become very competitive compared to other energy sources. However, it can’t meet peak demand, depending on the country. Other energy sources are needed to complement renewables, and the overall goal is to lower emissions, rather than aim right now to bring it down to zero. We need to have a pragmatic approach to deploy an energy mix benefitting the country and the environment. Suzanne Jaworowski, from the U.S. Office of Nuclear Energy underlined the importance of market volatility and reliability issues linked to the energy sector globally, and how the pandemic has highlighted those two challenges as central to a sustainable energy sector. As an advocate for the development of nuclear energy, Suzanne highlighted technology advancements which make nuclear a viable option for African countries in terms of cost as well as security: “Nuclear is a serious option to be considered in terms of energy transition. Smaller modular reactor designs which will come online in the next few years are economically competitive with combined cycle natural gas plants. Of course, each country must decide what is best, but major nuclear technology advancements make it worthy of taking it into account. Nuclear is a lot more accessible cost wise making it a viable option.” The discussion also touched on natural gas as a prime fuel for energy transition. As an energy specialist in South Africa, Dr Clinton Carter-Brown commented: “Ninety percent of South Africa’s electricity runs on coal. We have one of the highest numbers of emissions per capita across the globe. The shift from coal to renewable is particularly key in our country, economically and in regard to the energy transition. Natural gas will have a major role play in the transition, provided we are able to build the appropriate processing and transport infrastructure. The energy transition will create immense employment opportunities and is a major challenge in the years coming up.” Finally, the discussion touched on localization and local content. Although it is hot topic in the oil and gas space, local capacity development is equally, if not more, important in the renewable energy sector as it is home to major technology innovations. Massaer Cissé used the telecommunications revolution as an example to show that the energy sector is on the verge of its own revolution: “The energy sector is following the path of telecommunications. When mobile telecommunications came online, previously isolated communities suddenly could access mobile solutions. In the energy sector, mini solar kits, portable battery storage solutions, small wind power plants among others, are setting the energy on the path of revolution, in which renewables are a key component. Nuclear also has a major role to play because the main driver of the energy revolution is technological.” Nelisiwe Magubane brought up the issue of intellectual property as a key component of the regulatory frameworks to be designed by governments: “Renewable energy is an opportunity for African countries to create proprietary technology, be strict about intellectual property and drive technological innovation and energy independence.” Final words from Massaer Cisse underlined that the renewable energy revolution has not been hindered by COVID-19. “We all agree that the current situation is not sustainable. Energy sources don’t need to be mutually exclusive. Oil, nuclear, natural gas, coal have the biggest role to play. Renewables is here to stay and grow.”

Mozambique: Gov’t Revises Development Of Offshore Area One

Michael Creg Afful
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Mozambique: Gov’t Revises Development Of Offshore Area One
The Mozambican government has endorsed the shareholding and financing structure of a Liquefied Natural Gas (LNG) project relating to Rovuma Offshore Area one. This revision allows the entry of the French oil and gas company Total into the shareholding structure, taking the place once held by the U.S Company Anadarko. According to Mozambique News Agency, in 2019 Occidental Petroleum acquired Anadarko, and immediately sold Anadarko’s African assets to Total. The Minister of Mineral Resources and Energy, Max Tonela, explained that the revision “also seeks to create conditions for flexibility in the development of undertakings related with the project”. Under the commitments made last year, as part of the Final Investment Decision (FID) of the project, Anadarko and its partners would only undertake later stages in developing the Golfinho and Atum gas fields in Area One after 2026. “With the entry of Total, an exercise has been undertaken to optimise the financing”, said Tonela. “This will allow studies for presenting the second Area One onshore LNG project to take place during the term of office of the present government (i.e. by 2024).”
Russian Gas Exports To Europe Drop As Nord Stream 2 Nears Completion
“This process to optimise the financing”, he continued, “has also allowed a reduction in interest costs of about $1.1 billion during the construction phase and $700 million during the operational phase. This will allow all the interested parties, including the Mozambican state, to make associated gains”. Tonela forecast that, due to this restructuring, “the amount that the Mozambican state will receive from the project will increase by a billion dollars”. As for the impact of the COVID-19 pandemic on Area One, Tonela said, “we are finding ways of mitigation. The engineering work is taking place in a programmed manner. The pandemic has had some impact on questions of procurement, but these can be recovered from, since they do not endanger the overall programme for the project”. There had been an outbreak of COVID-19 at the Total work camp on the Afungi Peninsula in Cabo Delgado, said Tonela, “but work is under way to disinfect the camp, and we envisage that it will be declared free of COVID-19 by the end of the month”. Total is expected to sign financing agreements in June with about 20 banks, to a total sum of $15 billion. Those agreements, plus the disinfection of the Afungi camp, will clear the way for resumption of the building of the two LNG processing factories envisaged by the project. Total heads the Area One consortium with a participation of 26.5%. Its partners are the Japanese company Mitsui (20%), PTTEP of Thailand (8.5%), Mozambique’s National Hydrocarbon Company, ENH (15%), and three Indian companies, ONGC Videsh, Beas and Bharat Petro Resources (10%).

South Africa: Central Energy Fund Refutes Reports To Buying Sasol Assets

Michael Creg Afful
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South Africa: Central Energy Fund Refutes Reports To Buying Sasol Assets
South Africa’s Central Energy Fund (CEF) has dismissed media reports that it is in talks to buying petrol stations belonging to Sasol. According to CEF’s statement, at the recent portfolio committee meeting for Mineral Resources and Energy, the Chairperson of CEF, Dr Monde Mnyande informed the committee that the Group would be embarking on a campaign to drive both domestic and foreign direct investments in the energy value chain. The goal of this campaign would be to reignite the South African economy and create much-needed job opportunities. Part of this campaign will be to take advantage of all available energy assets that are up for sale in the marketplace and are in need of strategic partnerships, states CEF. Mnyande further cited Sasol’s available assets, “which are by now a public knowledge, and are up for sale as an example,” which CEF Group would consider in line with its investment strategy. “At no stage, did the CEF Group Board nor its Chairperson Dr Mnyande publicly announced that it is negotiating with Sasol to buy its petrol stations,” reads part of the statement.

COVID-19: Gov’ts Urged To Incentivise Investments In Renewable Infrastructure

Michael Creg Afful
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COVID-19: Gov’ts Urged To Incentivise Investments In Renewable Infrastructure
The outbreak of the novel Coronavirus has underlined hydropower’s resilience and critical role in delivering clean, reliable and affordable energy, a report by the International Hydropower Association (IHA) has revealed. The 2020 Hydropower Status Report presents the latest worldwide installed capacity and generation data, showcasing the sector’s contribution to global carbon reduction efforts and the need to incentivise investments. It was published alongside a Covid-19 paper featuring recommendations for governments, financial institutions and industry to respond to the current health and economic crisis. “Preventing an emergency is far better than responding to one,” says Roger Gill, President of IHA, highlighting the need to incentivise investments in renewable infrastructure. “The events of the past few months must be a catalyst for stronger climate action, including greater development of sustainable hydropower.” Now in its seventh edition, the Hydropower Status Report shows electricity generation from hydropower hit a record 4,306 terawatt-hours (TWh) in 2019, the single greatest contribution from a renewable energy source in history. The annual rise of 2.5 per cent (106TWh) in generation – equivalent to the entire electricity consumption of Pakistan – helped to avoid an estimated additional 80-100 million metric tonnes of greenhouse gases being emitted last year.
Hydropower Associations Unite On A Post-COVID-19 Recovery Pathway
More Highlights From The Report • Global hydropower installed capacity reached 1,308 gigawatts (GW) in 2019, as 50 countries completed Greenfield and upgrade projects, including pumped storage. • A total of 15.6GW in installed capacity was added in 2019, down on the 21.8GW recorded in 2018. This represents a rise of 1.2 per cent, which is below the estimated 2.0 per cent growth rate required for the world to meet Paris Agreement carbon reduction targets. • India has overtaken Japan as the fifth largest world hydropower producer with its total installed capacity now standing at over 50GW. The countries with the highest increases were Brazil (4.92GW), China (4.17GW) and Laos (1.89GW). • Hydropower’s flexibility services have been in high demand during the Covid-19 crisis, while plant operations have been less affected due to the degree of automation in modern facilities. • Hydropower developments have not been immune to economic impacts however, with the industry facing widespread uncertainty and liquidity shortages, which have put financing and refinancing of some projects at risk. In a companion policy paper, the IHA sets out the immediate impacts of the crisis on the sector as well as recommendations to assist governments and financial institutions and enhance hydropower’s contribution to the recovery. The Recommendations Include • Increasing the ambition of renewable energy and climate change targets which incorporate the role of sustainable hydropower development. • Supporting sustainable hydropower through introducing appropriate financial measures such as tax incentives to ensure viable and shovel-ready projects can commence. • Fast-tracking planning approvals to ensure the development and modernisation of hydropower projects can commence as soon as possible, in line with internationally recognised sustainability guidelines. • Safeguarding investment by extending deadlines for concession agreements and other awarded projects. • Given the increasing need for long-duration energy storage such as pumped storage, working with regulators and system operators to develop appropriate compensation mechanisms for hydropower’s flexibility services.

Halliburton 2020 Second Quarter Conference Call (Press Release)

Michael Creg Afful
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Halliburton 2020 Second Quarter Conference Call (Press Release)
Oil and gas services provider, Halliburton Company will host a conference call on Monday, July 20, 2020, to discuss its second quarter 2020 financial results. The call will begin at 8:00 AM Central Time (9:00 AM Eastern Time). The Company will issue a press release regarding the second quarter 2020 earnings prior to the conference call. The press release will be posted on the Halliburton website at www.halliburton.com. Please visit the website to listen to the call via live webcast. You may also participate in the call by dialing (844) 358-9181 within North America or +1 (478) 219-0188 outside of North America. A passcode is not required. Attendees should log in to the webcast or dial in approximately 15 minutes prior to the start of the call. A replay of the conference call will be available on Halliburton’s website until July 27, 2020. Also, a replay may be accessed by telephone at (855) 859-2056 within North America or +1 (404) 537-3406 outside of North America, using the passcode 4673833.

Russian Gas Exports To Europe Drop As Nord Stream 2 Nears Completion

Michael Creg Afful
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Russian Gas Exports To Europe Drop As Nord Stream 2 Nears Completion
Natural gas flows from Europe’s biggest supplier slumped after a price rout and with storage sites at above-average levels. Flows from Russia via the Yamal-Europe pipeline that runs across Belarus and Poland to Mallnow, Germany, slumped to zero Tuesday after a sharp decline since Sunday. Shipments into Baumgarten in Austria, a major European hub for Russian gas, fell by 25% from its 10-day average. Operators Gascade Gastransport GmbH and Gas Connect Austria GmbH have not notified the market of any currently planned or unplanned works. Gazprom PJSC, the Russian piped-gas exporter, didn’t immediately comment on the drop in supplies. “Such a significant reduction in gas transit is primarily driven by weak demand in Europe amid warm winter, high levels of gas in underground storage and demand distortion due to Covid-19,” VTB Capital said in a note. The European gas market has been watching for signs when key producers Russia and Norway will start curbing flows as an unprecedented glut keep on growing. Prices at the Dutch Title Transfer Facility, Europe’s biggest traded market, plunged as low as 3.365 euros a megawatt-hour last week, or $40.7 per 1,000 cubic meters. Those levels indicate that the economics have deteriorated even for low-cost producers such as Gazprom. “We note that on average Gazprom pays around $47 per 1,000 cubic meters of transit costs for pipelines other than Nord Stream, including via Ukraine, where the company has ship-or-pay obligations,” VTB Capital said. The impact is already being felt. Day-ahead gas prices in Germany jumped 24% to 5.10 euros per megawatt-hour, or the most since November 2019. Rates in bigger-traded regions such as Britain and the Netherlands also gained. According to Gaz-System SA, the operator of the Polish part of Yamal, the pipeline is practically fully booked for June as well as for the third quarter. May deliveries are being carried out in line with volumes booked in daily auctions, spokeswoman Iwona Dominiak said by phone. European gas storage sites are about 71% full and the expectations have been that inventories may be completely full by July. Norwegian gas flows to Europe were below the 5-year average for the time of the year over the past two weeks, but are at seasonal norms now. Qatar, one of the biggest liquefied natural gas suppliers to Europe, has said it will not cut its exports amid the glut despite low prices. Source: worldoil.com

Nigeria: Navy Destroyed 2,287 Illegal Refineries In 5 Years

Michael Creg Afful
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Nigeria: Navy Destroyed 2,287 Illegal Refineries In 5 Years
The Nigerian Navy says it has destroyed a total of 2,287 illegal refineries in the last five years. Addressing a press conference to mark the Nigerian Navy 64 Anniversary at the Naval Headquarters, the Chief of Policy and Plans, Rear Admiral Ifeola Mohammed, stated that the Service has drastically reduced illegal oil dealings in the Nigerian Maritime environment from 2017 to 2019. “In 2017, the Nigerian Navy denied criminal oil entrepreneurs dealing on illegal oil about 218,057 barrels of crude oil valued at about N3,724,413,560 and 60,553,415 litres of AGO valued at N11,807,915,925. “Similarly, in 2018, illegal oil dealings of about 295,028 barrels of crude oil valued at N5,039,078,240 and 23,991,325 litres of AGO valued at N4,678,308,375 were denied the criminal oil entrepreneurs in the same vein, in 2019, the NN denied the criminals 296,192 barrels of crude oil valued at about N5,058,959,360 litres of AGO valued at N8,332,258,350,” he said. He disclosed further that the reduction in the number of the illegal refineries is attributable to the success of the Operation River Sweep, “which resulted in the impounding of approximately 9,406,810 barrels of crude oil, 130,517,570 litres of AGO, 897,475 litres of PMS and 3,407,500 litres of DPK from 2017 to 20 May 2020”. According to Mohammed, within the time under review, 82 smuggling boats and 22 vehicles with cumulatively 61,719 bags of rice were impounded, while a total of 449 suspected smugglers were arrested. Source:www.energynewsafrica.com

Ghana: ECG Embarks On GHS 29.5 Million Power Expansion In Ashanti Region

Michael Creg Afful
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Ghana: ECG Embarks On GHS 29.5 Million Power Expansion In Ashanti Region
Ghana’s power distribution company, ECG, says it will be spending Gh¢ 29.5 million within the next year to expand access to reliable power supply in the Ashanti Region. Under the expansion project, which is already underway, the company is adding two new 33 kV lines to the Konongo substation to improve on the supply to the Konongo enclave and also to reduce the pressure on the substation. Currently, the substation has only one 11kV substation that feeds the entire Konongo and part of Kumawu. According to graphic.com.gh, Managing Director of ECG, Mr Kwame Agyeman-Budu, who was addressing journalists in Kumasi regarding recent power outages being experienced in the Ashanti Region, said the company had also invested in fire retardant paints to be used on the wooden poles to reduce the incidence of electric poles being burnt by bush fires. Mr Agyeman-Budu explained that some of the outages had been due to faulty transformers in the region. He said the company had identified 13 transformers that had been the cause of most of the outages in the region. According to him, out of the total of 234 outages that the region had experienced in the last one month, the 13 stations were responsible for a total of 102 while 29 of them were from GRIDCo. He said during the period under review, the transformer at Piase in the Bosomtwe District tripped 12 times while that at Mankraso in the Ahafo Ano South District also tripped 10 times. That notwithstanding, he said, the company’s response time in restoring power whenever there was an outage had also reduced considerably. He said the company had been working around the clock to ensure that power was restored quickly to affected areas whenever there was an outage. According to him, while the intention was to have an outage free system, some external factors made it impossible. Mr Agyeman-Budu cited the incidence of bush fires which destroyed electricity poles, and illegal connections as some of the causes. He reiterated that the company would not deliberately cut supply to its customers because “whenever power goes off, we lose money.” “The more power that is consumed legally, the more money the company makes’’, he stressed. Mr Agyeman-Budu appealed to the public to report those engaged in illegal power connections to the company for necessary action. He said the company had instituted a scheme to reward whistleblowers with six per cent of proceeds that the company would generate whenever someone engaged in illegal connection was arrested and billed.

Ghana: COPEC Demands Independent Testing Of Quality Of LPG From Atuabo

Michael Creg Afful
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Ghana: COPEC Demands Independent Testing Of Quality Of LPG From Atuabo
The Chamber of Petroleum Consumers (COPEC), a petroleum consumer advocacy group in the Republic of Ghana, is demanding an independent testing of the quality of Liquefied Petroleum Gas (LPG) supplied by the country’s national gas company, Ghana Gas, to local market for domestic use. This follows a statement by Ghana Gas disputing COPEC’s claim that LPG from Atuabo in the western part of the West African nation is contaminated because of the presence of high amount of propane. Executive Secretary of COPEC, Duncan Amoah, in an interview with some media houses in Ghana, claimed that the LPG processed from the West African nation’s gas company was contaminated and cautioned that the situation could cause explosion if not checked. However, Ghana Gas, in a statement signed by the Head of Corporate Communications, Ernest Kofi Owusu-Bempah Bonsu rejected COPEC’s assertion, insisting that the company’s gas is of quality and meets international standard benchmark. But, a statement issued by COPEC in response to Ghana Gas’ statement, maintained that the company’s gas is contaminated contrary to what it wants the public to believe. “Our initial checks with the LPG Marketing companies indicate that the gas load from Atuabo largely has a propane: butane ratio of 70:30, which means gas from Atuabo is usually 70 percent propane and 30 percent butane. “By industry standard, domestic LPG should be rather 30 percent propane and 70 percent butane with changes in percentages dependent on its intended usage and the prevailing environmental temperature conditions. “Further, beyond the calling on Atuabo Gas Company to declare the ratio of propane to butane in the LPG produced, we also demand an independent public testing to be conducted on random samples picked from some retail outlets at some accredited laboratories in order to put to rest the quality issues and the observed high pressures from gas supplied by Atuabo,” the statement said. It added that the company’s gas price is more expensive compared to the imported product in Tema. “As a matter of emphasis, COPEC maintains that the LPG from Atuabo should cost far less than the imported ones taking into consideration all ancillary costs associated with imported gas and to further serve as a critical benchmark in bringing down prices of LPG on the local market. “To end, we at COPEC hereby maintain that, Atuabo Gas Company should be concerned about producing higher internationally accepted standard LPG, which should cost far less to the Ghanaian market with the view to increasing the current LPG penetration figures such that more and more Ghanaians will find it affordable in place of charcoal and firewood,” COPEC said. Source:www.energynewsafrica.com
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