Nigeria: Inconsistent Policies Frustrating Investments In Oil Sector — Total MD

The Managing Director of Total E&P Nigeria Ltd, Mike Sangster, has attributed the decline in oil and gas exploration activities in West Africa’s largest economy, Nigeria, to what he described as an inconsistent fiscal and regulatory policy of the Federal Government. According to a report filed by Vanguard, Mike Sangster argued that there are no proportionate exploration activities to ensure long term sustainability and replenishment of the resource that accounts for more than 90 percent of the country’s foreign exchange earnings. “Total as a key stakeholder in the Nigerian oil and gas industry is prepared to work with the government, partners, and other stakeholders, to address these bottlenecks to new exploration investments,” Vanguard quoted him as saying. Sangster also noted that the adverse effect of the raging Coronavirus (COVID-19) pandemic on lives and businesses, especially the Oil & Gas industry, cannot be overemphasized. He was reported to have said this at the monthly technical presentation of Nigeria Association of Petroleum Explorationists (NAPE) last Wednesday. He stated: “These will have implications on the investment strategies and imperatives for businesses and even governments around the world. NAPE should adapt to a post-Coronavirus world and seek ways of reinventing itself for the purpose of continued relevance. “I have no doubt that the respectable membership of this body will take advantage of this month’s presentation to make deliberate, robust, and incisive contributions aimed at addressing the many challenges confronting our industry and nation.” He said that Total contributed $3.2 million (N1.2 billion) as part of the N21 billion donation spearheaded by the Nigerian National Petroleum Corporation (NNPC) in support of the Federal Government’s COVID-19 efforts. “The company also supported the Lagos State Government with critical supplies and medical equipment. In Rivers State, we reached out to our stakeholders by providing medical supplies and support for our host communities and the State Government. “Our downstream company, Total Nigeria Plc donated N50 million as part of a combined contribution from the Major Oil Marketers Association of Nigeria (MOMAN), under the auspices of the NNPC and provided the Lagos State Government with fuel for logistical support during the pandemic,” he added. Source: www.energynewsafrica.com

India: Nine Killed In Fire At Hydroelectric Power Plant

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A fire at a hydroelectric power plant operated by Telangana State Power Generation Corporation Limited (TSGenco) has killed nine workers in the town of Srisailam, south east India. The blaze broke out late on August 20, trapping the nine people in an underground part of the facility, reports energyworld.com. According to the online portal, a company’s statement identified the deceased as Deputy Engineer Srinivas Goud, Assistant Engineers Venkat Rao, Mohan Kumar, Fatima Ujma, plant attendant Rambabu, junior attendant Kiran and Sundar Kumar, and two technicians from Amararaja company Vinesh Kumar and Mahesh Kumar. “They tried to come out from the escape tunnel, but could not do so due to the dense smoke,” the company said. There were 17 people in the plant at the time of the accident. Eight of them could safely come out, but nine were trapped inside the plant, TSGENCO said. TSGENCO said that the fire incident occurred at 10:30 pm on Thursday. “The fire accident occurred in the 900 MW capacity hydro electric power station on the left bank of Srisailam reservoir at 10.30 pm on August 20. The fire broke out in the panels in unit 1 of the power station which led to the accident. The employees tried to put off the fire and save the plant from burning. The employees tried their level best till 12 am last night, but in vain,” the statement reads. “Telangana Power Minister Jagadeeswar Reddy, TS GENCO CMD Devulapalli Prabhakar Rao, GENCO directors and senior employees rushed to the spot and monitored the rescue operations. NDRF, Singareni coal mines technicians and Telangana state fire services rushed to the plant and tried to rescue the trapped ones,” it added. The plant is 1.2 km deep from the earth’s surface and there is only one tunnel to go there, TSGENCO said. “As fire and dense smoke spread, it was not possible to go inside for a very long time. The teams could enter the plant by the afternoon of Friday,” it said. Prime Minister Narendra Modi, Union Home Minister Amit Shah, Vice President M Venkaiah Naidu have expressed grief at the loss of lives in the incident. Telangana Chief Minister K Chandrashekhar Rao expressed shock over the fire incident. Source:www.energynewsafrica.com

ExxonMobil, Global Clean Energy Holdings Sign Agreement For Renewable Diesel

ExxonMobil has signed an agreement with Global Clean Energy Holdings to purchase 2.5 million barrels of renewable diesel per year for five years from a converted California refinery starting in 2022. The deal was signed at about a week ago. The renewable diesel will be sourced from a refinery acquired by Global Clean Energy in Bakersfield, California, which is being retooled to produce renewable diesel from Global Clean Energy’s patented varieties of camelina, a fallow land crop that does not displace food crops, and other non-petroleum feedstocks. Following scheduled production startup in 2022, ExxonMobil plans to distribute the renewable diesel within California and potentially to other domestic and international markets. “Our agreement with Global Clean Energy builds on ExxonMobil’s longstanding efforts to develop and offer products that help meet society’s energy needs while reducing environmental impacts,” Bryan Milton, president of ExxonMobil Fuels and Lubricants Company said. “Chemically similar to petroleum-based diesel, renewable diesel can be readily blended for use in engines on the market today.” “Our relationship with ExxonMobil is a perfect fit for Global Clean Energy and the Bakersfield biorefinery because it leverages ExxonMobil’s scale and unrivaled market perspective to unlock value for both companies,” Richard Palmer, CEO of Global Clean Energy Holdings said. “By combining upstream feedstock supply and downstream production, we are moving toward the fully integrated production model pioneered by ExxonMobil.” In addition to camelina, various non-petroleum feedstocks, including used cooking oil, soybean oil, distillers’ corn oil and other renewable sources will be refined to produce the renewable diesel. Based on analysis of California Air Resources Board (CARB) data, renewable diesel from various non-petroleum feedstocks can provide life-cycle greenhouse gas emissions reductions of approximately 40 percent to 80 percent compared to petroleum-based diesel. Source:www.energynewsafrica.com

South Africa: Sasol To Donate Hydrogen, Methanol To Power 1 Military Hospital ICU Facility In Pretoria

Sasol, intergrated energy and chemical company has announced that it will be donating 10 000 litres of methanol and 600 kg of hydrogen every month until the end of April 2021 to help power the field ICU facility of 1 Military Hospital in Pretoria, South Africa. According to the company, it is also working with its customers, Air Products and Protea Chemicals, to assist with logistics for supplying the fuels to 1 Military hospital. The company made this promise following the unveiling of five methanol fuel cell systems and two hydrogen fuel cell systems, which will be used at Pretoria’s 1 Military Hospital as a primary source of power for the field hospital facilities established as part of Government’s response to COVID-19. The project was a partnership between the DSI, the Department of Public Works and Infrastructure, the Department of Defence, and private sector companies. In addition to it being part of government’s COVID-19 response, it is also integral to government’s vision to integrate hydrogen within the economy, motivated by the benefits that will accrue as a result, which include decarbonising the economy. “This is an important initiative for Sasol for many reasons,” Charlotte Mokoena, Executive Vice President for Human Resources and Corporate Affairs at Sasol said in a press release. “In addition to the fact that this contribution espouses who we are as Sasol and demonstrates our unwavering commitment to supporting and collaborating with government in executing innovative solutions to current challenges, it also illustrates the direction Sasol is taking. We are deliberately pursuing renewable energy sources through technology, innovation and collaboration, and sustainably produced hydrogen is integral to us reducing our carbon footprint across our operations.” Sasol pledged its commitment to continue working with the Department of Science and Innovation (DSI) in the process towards the development of a South African Hydrogen Roadmap. “We see public-private and private-private partnerships as critical in decarbonising South Africa’s energy landscape, whilst fulfilling socio-economic and sustainable development goals,” Mokoena said. Source:www.energynewsafrica.com

Ghana: NPP To Build Critical Energy Infrastructure In Second Term-Amin Adam

The Akufo-Addo-led governing New Patriotic Party (NPP) has assured Ghanaians that it will continue to build critical infrastructure for the country’s energy industry, reduce distribution losses, improve reliability in power supply as well as increase power and natural gas exports to the West African sub-region if they retain power in December 7, 2020, polls. Speaking at the launching of the NPP’s 2020 Manifesto in Cape Coast in the Central Region, Saturday, Deputy Energy Minister in charge of Petroleum, Dr Mohammed Amin Adam said the next NPP-led government will continue to pursue its plan to develop Ghana into a regional petroleum hub in the Western Region of the country. The Akufo-Addo-administration promised in its 2016 Manifesto to establish petroleum hub in the Western Region, but that vision has not been fully actualised. Energynewsafrica.com understands that a 200-acre land has been secured in the Western Region for the project. Our sources from the Ministry of Energy indicate that the Deputy Minister for Energy in charge of infrastructure and MP for Effia Constituency Hon. Joseph Cudjoe recently led a delegation from the Ministry to visit chiefs and elders of the area where the hub is expected to be sighted. Dr Amin revealed that a bill establishing the Petroleum Hub Corporation is currently under parliamentary consideration. “We will pursue relevant reforms in the upstream petroleum sector and provide incentives for the revival of exploration activities after the COVID-19 pandemic. “We are on course to building an energy economy, which we are promising you, for the rapid industrialisation and transformation of our country “Your vote for President Akufo-Addo and the NPP means a vote for the efficient management of the energy sector,” he stressed. Source:www.energynewsafrica.com

Ghana: Ruling NPP Touts Unparalleled Energy Sector Records

Ghana’s ruling party, the New Patriotic Party (NPP), has touted its records in the country’s energy sector as the best in the fourth Republic. The West African nation will be going to the polls on December 7, 2020, to elect a president and Members of Parliament to rule the country for the next four years. Ahead of the elections, the governing party is unveiling its 2020 Manifesto at the Cape Coast University, Central Region, which outlines its major policies for the next four. Delivering a speech to trumpet its achievements to herald the launching of the Manifesto, Deputy Minister for Energy in charge of Petroleum, Dr Mohammed Amin Adam stated that the NPP is first in the history of Ghana to reduce electricity tariffs by 11 percent on a net basis against an increase in tariffs of 265 percent under the NDC government. Dr. Amin who is the NPP’s Parliamentary for Karaga Constituency in the Northern Region said, ISSER of Ghana’s Premier University Legon, reported that the inept management of the country’s energy sector, which was christened as ‘Dumsor’, cost the West African nation, US$680 million in 2014, representing about 2 percent of GDP. He further observed that Ghana’s energy sector faced an unpresented financial crisis under the NDC government which could not even support procurement of fuel to operate the power plants during its era. “President Akufo-Addo has not found the means to secure fuel supplies over the last three and half years, but has also cleared all government’s owed ECG. We have fully redeemed over US$1 billion of debts accrued by John Mahama and the previous NDC government from Bulk Oil Distribution Companies,” he stressed. To sustain cash flow in the energy sector and avoid further accumulation of debts, he said they are currently implementing the cash water-fall system. Dr Amin also mentioned the provision of relevant national infrastructure for the energy sector including the gas reverse-flow project which now allows flow up 120mmscf of gas per day from Takoradi to Tema, thereby, reducing Ghana’s reliance on Nigeria gas. He noted that the National Hybrid Power System, which is ongoing at Bui Dam and Pwalugu integrated project, which together will increase solar power penetration by 100MW, and move Ghana closer to the national renewable energy target in the generation mix. According to him, the President Akufo-Addo-led NPP government is on course to building an energy economy, adding that it has demonstrated unparallel dedication to protecting the welfare of Ghanaians. “Fellow Ghanaians, as you continue to enjoy the electricity relief, remember that it takes a caring leader to show empathy to his fellow citizens in times of crisis, notwithstanding the cost. This could not have been possible under the John Mahama administration”, he observed. Additionally, Dr Adam said President Akufo-Addo had demonstrated unparalled dedication to protecting the welfare of Ghanaians during this painful Covid-19 period, and has provided yet another relief package of free electricity to all lifeline customers and five percent reduction to all others. Source:www.energynewsafrica.com

Ghana: Togbe Afede XIV Commends ECG’s General Manager In Volta Region

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The President of the National House of Chiefs, Togbe Afede XIV, has commended Emmanuel Lumor, the new General Manager of ECG, Volta Region, for exhibiting best customer service practice. This was when Mr. Lumor paid a courtesy call on the Asogli State Council in Ho. Togbe Afede XIV’s verbal commendation was later documented in a letter from the Asogli State Council and issued on 21st August, 2020. The letter from the Asogli State Council commended Emmanuel Lumor for prompt response to the request of the President of the National House of Chiefs. The letter added that “Words cannot adequately express our appreciation and gratitude for your kind gesture. We, therefore, pray the Almighty God, Fountain of all good things to shower his blessings upon you.”
Emmanuel Lumor, General Manager of ECG for Volta Region in the Republic of Ghana
Emmanuel Lumor, who assumed office as the General Manager of the Electricity Company of Ghana (ECG) in the Volta Region on Monday 17th, August, 2020, paid a courtesy call on the Asogli State Council to solicit the support of the President of the National House of Chiefs, chiefs, queens and people of the Asogli State. Mr. Lumor added that “following my appointment as the General Manager of ECG in the region, I am here today to seek the support and blessings of Togbe Afede XIV and the Asogli Traditional Council to enable me succeed in this role.” Outlining his vision for the region, Mr. Lumor indicated that with the support of the Asogli State, he intended to make Volta Region the hub of excellent customer service in ECG. “I want Volta Region to be identified with excellent customer care anytime the region is mentioned, so together with my management team, we are putting measures in place to ensure all our customers are satisfied,” he said. Togbe Afede XIV, who is also the Agbogbomefia of the Asogli State, was full of praise for the General Manager after receiving an instant solution to a concern he raised during the interaction, highly endorsed the idea of making Volta Region the hub of excellent customer service in ECG. He said: “You have started on a good note.” Commenting on this remarkable achievement, Mr. Lumor indicated that he owed his commendation to members of his management team and staff of ECG Volta for playing a major role in responding to the request of Togbe Afede XIV. He assured the general public that despite receiving the honour, the company would not relent on its quest to provide excellent customer care in the Volta Region. The General Manager also donated an amount of GHc2,000 in support of the Asogli Education Fund on behalf of the company. Source: www.energynewsafrica.com

Turkey: Erdogan Announces Huge Natural Gas Find

Turkey’s president Recep Tayyip Erdogan has announced that the country had found significant natural gas resources in the Black Sea. The discovery of 320 billion cubic metres (11.3 trillion cubic feet) reserve, will help Turkey cut its dependence on energy imports if the gas can be commercially extracted. Turkey’s drilling ship Faith, which has been operating in and exploration zone known as Tuna-1 since late July, made the find about 100 nautical miles north off the Turkish coast. Although, Erdogan didn’t reveal whether the 320 billion cubic metres referred to total gas estimates or the amounts that could be extracted, he did say it could come onstream as soon as 2023. Erdogan said: “This reserve is actually part of a much bigger source. God willing, much more will come,” adding that there would be no stopping until Turkey “becomes a net exporter in energy.” The country almost completely relies on imports from Russia, Azerbaijan and Iran to meet its energy demands, which stood at $41bn (£32bn) last year. With any reduction in the energy import bill not only boosting government finances but also help ease chronic current account deficit, which puts pressure on the Lira. Speaking from the deck of the Faith drill ship, Finance Minister Berat Albayrak said: “We will remove the current account deficit from the agenda of our country.” The gas find is located in waters 2,100 metres deep, Energy minister Fatih Donmez said, with Erdogan announcing operations in the Mediterranean would accelerate. Turkey has been exploring hydrocarbons in the Black Sea and the Mediterranean — where its survey operation has drawn protests from Greece and Cyprus — with Greek and Turkish warships shadowing a Turkish survey vessel colliding there last week. Source: www.energynewsafrica.com

Saudi Aramco Suspends US$10 Billion Refinery Complex Project In China

Saudi Arabia’s state oil behemoth Saudi Aramco has suspended a deal to build a $10 billion refining and petrochemicals complex in China’s northeastern province of Liaoning, reports Economic Times. The refinery was supposed to be built by Aramco in partnership with China North Industries Group Corporation (Norinco) and Panjin Sincen. However, the fate of the refinery now hangs in the balance as Aramco is planning to cut down spending in a bid to cope with losses being incurred due to the low prices of oil. The joint venture was signed last year in February when Crown Prince Mohammed bin Salman was on a visit to Beijing. As per the deal, once the project would come up, Saudi Arabia was going to supply as much as 70% of the crude for the 300,000-barrel-a-day refinery. Aramco is said to be planning to cut its capital spending in a bid to maintain a $75 billion dividend amid the low crude oil prices and rising debt. Source:www.energynewsafrica.com

China Charters 19 Tankers For Record U.S. Crude Oil Shipment

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U.S. oil exports to China are set to reach a record next month in a sign that Beijing is stepping up purchases to meet its commitments under a landmark trade deal reached earlier this year. Chinese crude buyers have chartered about 19 tankers for September to send roughly 37 million barrels of oil to China, according to provisional tanker fixtures. If these proceed as planned, the exports would surpass a record set in May at 35.2 million barrels, according to U.S. Census data compiled by Bloomberg. The May volume was also the most by any U.S. oil buyer for a given month, data show. Under phase one of the deal, the world’s largest oil importer promised to buy an additional $200 billion of U.S. goods and services in 2020 and 2021, including $52 billion in energy products, in an agreement signed in January. Purchases so far have lagged that target. A review of the deal that was set for for August 15 was canceled, and has yet to be rescheduled. All but one of the tankers, which can carry about 2 million barrels each, will originate on the U.S. Gulf Coast. Unipec, the trading arm of Chinese’s largest refiners Sinopec, has booked some of those tankers, while a few others were chartered by PetroChina Co Ltd, a subsidiary of China National Petroleum Corp. Still, fixtures can get canceled or rerouted if market fundamentals change.

Nigeria: Power Sector Improved Significantly With All Time Peak Of 5,420MW

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Electricity supply in Nigeria is fast improving as the Transmission Company of Nigeria (TCN) announces all time national peak of 5,420.30MW transmitted through the national grid on August 18, 2020. A statement posted on TCN’s Twitter said, “This is the highest ever recorded in the nation’s power sector to date, surpassing the previous peak of 5,377.80 recorded on the 1st of August 2020 by 42.50MW.” According to the company, the Buhari-administration has taken keen interest in developing the West African nation’s power sector by piloting programmes and projects geared at improving the power sector, hence the latest development. “The gradual but steady improvement in the electricity delivery in the nation’s power sector is attributable to keen interest of the current administration of President Mahammadu Buhari in piloting programmes and projects geared towards growing the power sector, as well as the collective effort of all power sector players in the value chain,” the company said. “TCN is committed to working assiduously to further stabilise, rehabilitate and expand the grid and urge Nigerians to lend their support by safeguarding electricity installations nationwide,” the company appealed. Source:www.energynewsafrica.com

South Africa: No Loadshedding Expected This Weekend-Eskom

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South Africa’s power utility company, Eskom, has assured that there will be no loadshedding due to return of three generation units last night. “Eskom is pleased to announce that the supply constraints has eased sufficiently to allow for the suspension of loadshedding,” the utility company said. “This also means no loadshedding is anticipated for the rest of the weekend,” the company added. Eskom explained that three generators were returned to service at the Lethabo, Medupi and Kusile power stations while another unit at Kusile was taken offline for repairs. Unplanned breakdowns stand at 8,750MW of capacity, adding to the 4,500MW currently out on planned maintenance. “While the supply constraints has eased for the rest of the weekend, Eskom would like to remind the public to continue using electricity sparingly as the aged generation infrastructure is unpredictable, unreliable and volatile.” It, however, cautioned that any significant deterioration in the generation performance may necessitate the implementation of load shedding at short notice. “Eskom would like to thank the people of South Africa for their assistance and patience during the difficulties of load shedding,” the company said. Source:www.energynewsafrica.com

Ghana: President Akufo-Addo Cuts Sod For US$ 25M GNPC’s Operational Headquarters In Takoradi

Ghana’s President H.E. Nana Addo Dankwa Akufo-Addo has cut the sod for construction of the operational headquarters of the country’s national oil company, GNPC, in Takoradi in the Western Region The seven-storey complex which will cost US$ 25 million upon completion will provide office space for 400 staff. Speaking at the sod cutting ceremony, President Akufo-Addo said the project signifies the fulfillment of the NPP’s manifesto pledge to make the Western Region the hub of Ghana’s petroleum sector. “If it was not for the impact of the COVID-19 pandemic, this project would have been at an advanced stage,” the President said. Once completed, the building will have a 300-seater auditorium, gymnasium, cafeteria and a business centre on the ground floor. The upper floors will accommodate private office spaces for GNPC and other potential tenants, especially in the oil and gas value chain. It will be constructed over a period of two years. The President urged the contractor to ensure the timely delivery of this project within budget and with the use of local labour. “It is good that the Western Region is benefiting from many of the initiative undertaken by the GNPC Foundation as the oil and gas resources that generate the revenues of the Corporation are currently located on the shores of the Western Region,” he said. The contractor, Boaz Levi, said the office complex is being built with smart technology and will create 300 employments along the 24 month period it hopes to complete construction. “In compliance with the government’s policy of ensuring smart energy efficiency, the office complex is designed with solar ingress and wind direction. Upon completion, the building is expected to attain LEED certification, which measures building standards to assess their compliance with ‘all-in-one’ address of energy efficiency, water conservation, site selection, material selection, daylighting and waste reduction.“ The NPP Chairman and Board Chairman of GNPC, Freddie Blay, said Corporation’s objective is to ensure all benefit through GNPC Foundation. “We are happy to say that, since the establishment of the Foundation and through GNPC’s Corporate Social Investment initiatives, the Western Region has received its fair share of infrastructure in the provision of classroom blocks, science laboratories, Astro turfs, sanitation blocks, tertiary scholarships and provision of potable water and these are also seen across the country to bridge the development gap.” The President also commissioned an ultra-modern office complex and hostel facility for the Western Regional House of Chiefs, constructed and furnished by the GNPC Foundation in Sekondi. Source:www.energynewsafrica.com

Ghana: Charcoal Importation On The Rise-Energy Commission

Importation of charcoal into the Ghanaian market is said to be on the rise, an official of Ghana’s Energy Commission has revealed. This, according to Prosper Ahmed Amuquandoh, Inspector in-charge of Renewable Energy at the Energy Commission, is due to low quality of charcoal being produced locally. “Some of the charcoal that is produced locally produces ash; it burns faster; it is not efficient and some of them, depending on the kind of tree that was used to produce the charcoal, produce sparks. For instance, if you use a shea nut tree to produce charcoal, you are most likely to have sparks. “But the imported ones have been processed, are efficient and clean, do not produce ash or sparks and are packaged. These and other factors why people purchase the imported ones,” Mr. Amuquandoh told Business & Financial Times (B&F) in an interview. According to him, even though the market for the imported product is not huge, it is rising; and its existence is not because locals are not able to meet demand, but because some locals are not assuring the market of the quality needed. He was, however, quick to add that some local producers have started producing quality charcoal, not only to satisfy local demand but also for export. These locals are being policed by the Energy Commission to ensure that they follow the laid-down regulations for production and export of the commodity. Meanwhile, the B&FT has gathered that the Energy Commission is working to develop regulations for the local market to ensure their activities are not only sustainable but also environmentally friendly. The regulation will also deal with transportation, packaging and marketing of charcoal for local use. One of the key points in the regulations is to curtail the indiscriminate felling of trees for production of charcoal, which already exists in the regulations for export. From available data via the Energy Commission, the majority of imported charcoal is consumed by households, especially middle to upper-class income earners. Also, charcoal constitutes the largest portion of energy usage in Ghana. One of the reasons for this development has been ascribed to cultural beliefs; that some delicacies taste better and are healthier if cooked with charcoal. According to IndexBox, a leading market research publisher in the world, the global wood charcoal market revenue amounted to US$24.2 billion in 2018, remaining relatively unchanged against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.6 percent from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded throughout the analysed period. Global wood charcoal consumption peaked in 2018, and is likely to continue its growth in the immediate term. The countries with highest volumes of wood charcoal consumption in 2018 were Brazil (5.5m tonnes), Ethiopia (4.4m tonnes) and Nigeria (4.2m tonnes). They together accounted for 28 percent of global consumption. These countries are followed by India, Democratic Republic of the Congo, Ghana, Tanzania, China, Thailand, Madagascar, Egypt and Zambia, which together accounted for a further 33 percent. Source:www.energynewsafrica.com