President of the Republic of Ghana, His Excellency Nana Addo Dankwa-Akufo-Addo, at Alavanyo-Abehenease, in the Volta Region, on November 21, 2020, commissioned the first micro power generating station
The 45kW Tsatsadu Micro-hydro Generation Station was built by the Bui Power Authority.
Energynewsafrica.com brings you exclusive photos from the event.
His Excellency President Nana Addo Dankwa Akufo-Addo cutting the tape to officially commission the 45kW Tsatsadu Micro-Hydro Power Generating Station At Alavanyo-Abehenease in the Hohoe Municipality of the Volta Region. With him are John-Peter Amewu (right), Togbuiga Tsedze Atakora (2nd right), Paramount Chief of Alavanyo Traditional Area and Prof. Aaron Mike Ocquaye (3rd left), Speaker of Parliament.
French independent power producer (IPP), Akuo Energy has commissioned its Kita solar photovoltaic power plant in the Republic of Mali.
With a capacity of 50 MWp, it is one of the largest photovoltaic installations in West Africa.
This project was implemented in partnership with Pash Global, an investor active in the renewable energy sector.
The independent power producer (IPP) now supplies 50 MWp to Mali’s national electricity grid.
The electricity produced is sold to the public company Electricité du Mali (EDM) under a 30-year power purchase agreement (PPA).
The solar power plant, which occupies a 100-hectare site, is made up of 187,000 panels and solar inverters capable of delivering 50 MWp, making it one of the largest solar parks in the West African sub-region.
Its power is capable of supplying up to 120,000 Malian households.
The installation is therefore an important part of Mali’s electrification process, which has been greatly delayed due to political and security instability, with more than 49% of the population still without access to electricity, according to the World Bank’s 2018 report.
Akuo Energy built the Kita solar power plant in partnership with the investment company Pash Global, which owns 49.9% of Akuo Kita Solar (AKS), the special purpose company created to operate the plant.
In addition to its energy contribution, the solar farm contributes to Mali’s sustainable development, as it will help avoid the emission of 52,000 tonnes of CO2 per year.
“This large-scale project thus strengthens the country (Mali), a signatory of the 1995 Kyoto Protocol, in its commitment to fighting climate change and enables it to get closer to its national renewable energy objectives by 2030. Furthermore, the plant contributes to reducing the country’s dependence on hydropower, which is currently under threat from climate change, but also on imported fossil fuels and the use of wood fuel from natural inland forests,” Akuo Energy points out.
The implementation of this clean energy project required an investment of 53 billion CFA francs (80.7 million euros). Its financing gave rise to an unprecedented mobilisation of development partners.
These include the West African Development Bank (BOAD) and Emerging Africa Infrastructure Fund (EAIF), managed by Investec Asset Management. The Netherlands Development Finance Corporation (FMO), the National Agricultural Development Bank of Mali (BNDA), Green Africa Power (GAP) and GuarantCo are also supporting this project, which also has a social component.
Fuel prices in the Republic of Ghana have witnessed a marginal reduction across the country.
GOIL, Total and Shell, which are the market leaders, are now selling gasoline at GHS4.67 from GHS4.77 previously while gasoil is selling at GHS4.67 from GHS4.77.
Meanwhile, Zen, So, Goodness, Frimps, Puma and Star Oil are top five OMCs selling lowest priced fuel across the country.
Niger’s Minister of Petroleum Foumakoye Gado has been named by the African Energy Chamber as one of the top 25 leaders to watch for 2021.
This highlights the growing importance of Niger as an oil producer in Africa.
Every year, the Chamber recognises 25 individuals who are set to play a major role in the development of the African oil & gas and energy sectors in the coming year.
These leaders have demonstrated effectiveness in enabling major projects to be realised, and are expected to play a key role in the transformation of the oil and gas in their countries or the region.
Niger remains one of Africa’s most attractive onshore energy frontiers, significantly de-risked by previous exploration programmes carried out by Chinese operators. Niger holds 150m barrels of proven oil reserves and this figure is likely to increase with more exploration in the coming years.
The ongoing construction of the $4.5bn Niger-Benin oil export pipeline will be opening up a new route to monetize such reserves and could result in a profound transformation of Niger’s economy by as soon as 2025.
The pipeline has a capacity of 90,000 barrels per day (bpd) and could catapult Niger’s overall daily production from currently over 20,000 bpd to 110,000 bpd.
Minister Gado’s nomination is also in response to his efforts in securing FID for the all-important pipeline, and overseeing London-based Savannah energy’s exploration success with five discoveries from five exploration wells drilled.
The minister will therefore be in charge of building the Sahel’s most important oil sector in the coming years, in a region whose economy remains deeply affected by droughts and security concerns.
Future developments will be closely watched globally as International Oil Companies seek to understand the viability of the sector in a region that has seen little oil and gas activity in the past.
The minister shall be responsible for shaping the industry in the country, in terms of local content regulation, attracting international service companies who have till date been absent in Niger’s oil and gas sector and ensuring that Nigerians benefit from the industry in terms of jobs, training and other derivatives that the sector is expected to bring.
Source: www.energynewsafrica.com
Six companies, specialised in biomass valorisation, have teamed up to develop new business initiatives in South Africa using solid (woody) biomass.
The companies have formed a public private partnership (PPP) with the Dutch government, Netherlands Enterprise Agency and the Embassy of the Netherlands in South Africa.
“Beneficiation of biomass residues holds a major potential for South Africa in terms of waste minimisation, job creation, CO₂-reductions, and clean, secure and affordable household energy,” says Emiel Hanekamp, senior partner in Partners for Innovation, one of the companies involved in this initiative.
“We are looking for collaborations with municipalities and local companies to actually make this happen.”
Masterclass at #DAUW
The team will present an exclusive, free masterclass on “Biomass opportunities in South Africa” on 25 November at 12h30 SAST during the Digital African Utility Week and POWERGEN Africa.
A previously mothballed pellet factory at Coega Development Zone near Port Elizabeth has already been acquired and will be refurbished to be operational again in the course of 2021. It will be known as the Coega Biomass Centre.
Emiel explains: “Municipalities can valorise the wood residues from their gardens and parks that otherwise end up in overcrowded landfills.
The collection of wood residues, especially the AIS clearing, and the pre-processing and transportation of this waste creates many local jobs. This is apart from the jobs created at the pellet factory itself. In total approximately 900 jobs will be created in the Nelson Mandela Bay area.”
If locally used in gasifier cookstoves, the wood pellets produced by the factory can provide up to 48,000 households with clean and affordable household energy.
Investment
“The Coega Biomass Centre is the first in a row,” Emiel adds, “as our ambition is to start similar initiatives in in South Africa. We expect to launch new initiatives for biomass residues beneficiation during next year. For South African companies, this means investment and collaboration opportunities in a solid infrastructure, creating new sustainable business models in a promising and expanding market. In addition, they can profit from a long-term collaboration with European companies and investors.”
With regards to the total investment in the project thus far, the partners will invest R50-million ZAR (€3-million) in the first phase which is the acquisition, refurbishment and recommissioning of the factory. Further investments in the factory are expected in the near future. For example, the investment in the drying and torrefaction technology and its integration in the existing plant is expected to be around R45-million.
Masterclass: “Biomass opportunities in South Africa”, 25 November at 12h30 SAST | 10h30 GMT
Host: Sebastiaan Messerschmidt, Consul-General of the Kingdom of the Netherlands in Cape Town, South Africa
Moderator: Werner Euler, MD, iLive Sustainable Development
Speakers:
– Emiel Hanekamp, Senior Partner, Partners for Innovation, The Netherlands
– Joris Spaan, Project Manager, Yilkins, The Netherlands
– Ruben Walker, CEO, African Clean Energy, Lesotho
– Bart-Willem ten Cate, Low-Carbon Strategist, Finco Fuel Group, The Netherlands
Jordi Meijer, Managing Director, Control Union, South Africa
– Garth Barnes, Deputy Director: Risk and Strategic Partnerships, Department of Environment, Forestry and Fisheries, South Africa
– Kees Kwant, Senior Expert Bioenergy and Liaison Circular Biobased Economy, Netherlands Enterprise Agency, part of Ministry of Economic Affairs, The Netherlands
Media briefing: Announcement of biomass initiative, 24 November, 12h45 SAST | 10h45 GMT
TO REGISTER for the masterclass, media briefing and the other upcoming sessions during Digital African Utility Week and POWERGEN Africa: https://www.african-utility-week.com/digital/general-admission
President of the Republic of Ghana, His Excellency Nana Addo Dankwa Akufo-Addo has praised the Bui Power Authority and Ministry of Energy for working to ensure the realisation of the Tsatsadu Micro-hydro Power Project under his tenure.
According to the President, the project had been on the drawing board for over two decades but successive governments paid lip service to it, as well as developing other small and mini-hydro sites across the country.
“When we had the opportunity to come to power and Kufour appointed Prof. Aaron Mike Ocquaye as Minister for Energy, studies were done and about twenty-two sites were identified for the development. Unfortunately, before we could operationalise these, we lost the election of 2008. Many important initiatives by the Kufour government were abandoned by the Mills-Mahama government.”
He said upon his assumption of office in 2017, he directed the Ministry of Energy, together with the Bui Power Authority, to re-develop the hydro power generating stations, including that at Tsatsadu.
Speaking at the commissioning of the 45kW Tsatsadu Generation Station at Alavanyo-Abehenease in the Hohoe Municipality of the Volta Region, President Akufo-Addo said the project is a demonstration of the commitment of his administration to develop the country’s energy resources.
The Tsatsadu project was initially designed as a 30kW stand-alone system, but was redesigned and upgraded to a 45kW grid-connection system based on the outcome of the additional studies.
The project was funded through BPA’s internally generated fund of US$400,000 with support from the Danish and Chinese governments through the Renewable Energy Technology Transfer (UNDP-RETT) Project.
The 45kW Tsatsadu Micro-hydro Generation Station was constructed by local young engineers of the Bui Power Authority.
According to President Akufo-Addo, it is his wish and desire that the skills on mini-hydro power plant development is transferred to develop the other potential mini-hydro potential sites in the region and beyond.
“I, therefore, declare to make the Alavanyo Tsatsadu Generation Plant a Centre of Excellence under Bui Power Authority for training young engineers in the development of mini-hydro plants across the country,” he said.
Touching on the passage of the Bui Power Authority (Amendment) Act 2020, he said the BPA is now mandated to expand the scope beyond the Black Volta and mandate to promote and facilitate the development of renewable and other clean energy options nationwide. The Amended Act also gives the Authority the legal mandate to execute and manage renewable energy and clean energy programmes on behalf of the state or that in which the state has an interest.
The Chief Executive Officer of Bui Power, Fred Oware thanked the President for the confidence reposed in him, assuring him that with the amendment of the BPA Act which has mandated them to develop other renewable projects on behalf of the state, the Authority would work hard to ensure that other sites identified for small and micro hydro projects are actualised.
The Paramount Chief of Alavanyo, Togbuiga Tsedze Atakora was full of praise for President Akufo-Addo and Minister for Energy John-Peter Amewu for the numerous development projects in the area.
He said the people were particularly happy that through his leadership and the support of other institutions the recurring problems of Nkonya Alavanyo clashes was not happening.
“Mr. President, the only two things God deprived me of are dancing and singing. If I had a beautiful voice and good dancing skills I would have sung and danced to appreciate you”, he added.
Source: www.energynewsafrica.com
Ghana’s second largest power generation company, Bui Power Authority (BPA), will today, November 21, 2020, officially commission its 45kW Tsatsadu Micro-hydro Generation Station, located at Alavanyo-Abehenease in the Hohoe Municipality of the Volta Region.
A statement issued by Akua Sakyi, Corporate Affairs Manager at BPA, said the President of the Republic of Ghana, His Excellency Nana Addo Dankwa Akufo-Addo would officially turn on the facility today.
It would be Ghana’s first Micro-hydro Power Generation Station constructed by the Bui Power Authority under the Ministry of Energy’s renewable energy initiative.
The project was co-funded by the Danish and Chinese governments through the Renewable Energy Technology Transfer (UNDP-RETT) Project.
The facility, which is situated on the Tsatsadu Waterfalls, is a run-of-river scheme, which did not require the formation of a reservoir to operate.
It consists of a concrete diversion weir, an intake structure, diversion channel, a forebay, steel penstock, a powerhouse and a transmission line which ties the electricity generated into the local distribution grid.
The weir diverts part of the river flows through an intake channel into the diversion channel.
The diverted water goes through a 300mm diameter penstock to the base of the hill where the powerhouse, which houses the turbines and the generator, is located.
John-Peter Amewu, Energy Minister, Fred Oware, Other officials of the Ministry of Energy inspecting the facility some few months ago
The water drives the turbines and flows out through the tailrace channel and back into the downstream of the waterfall.
The project, initially designed as a 30kW stand-alone system, was redesigned and upgraded to a 45kW-grid connection system based on the outcome of additional studies.
The 45kW Tsatsadu Micro-hydro Generation Station was constructed by local young engineers of the Bui Power Authority.
The Bui Power Authority collaborated with the United Nations Industrial Development Organisation (UNIDO), the International Network on Small Hydro Power of China (IN-SHP) and Ghanaian Energy sector agencies to execute the project.
Bui Power Authority expresses its appreciation for the support from the Paramount Chief and people of Alavanyo and the Foyer de Charité Catholic Retreat Centre in releasing the portion of their land required for the project.
An Electrical engineer with the La Dadekotopon Municipal Assembly in the Greater Accra Region of the Republic of Ghana has been electrocuted while fixing streetlights at Labone, a suburb of Accra.
There were reports that suggested that a man who was hoisting a political party flag on ECG’s distribution pole was electrocuted in the vicinity of Labone.
However, reacting to the reports, Head of Works Department at the La Dadekotopon Municipal Assembly, Ing. Richard Ben Debra said the deceased, Ing. Richard Bortey was a staff of LADMA, adding that the Assembly took delivery of some LED streetlights and he was asked to fix them to illuminate the municipality.
He explained that Ing Bortey started the exercise on Tuesday but could not finish.
According to him, Ing Bortey resumed the exercise on Wednesday morning at Kweku Baako street only for the Assembly to be informed in the afternoon that the engineer had been electrocuted while on duty.
An eyewitness told energynewsafrica.com that she and had earlier engaged Ing Bortey in some friendly conversations.
“Abruptly, he slumped so I raised alarm which drew a crowd to the scene. Unfortunately, he had been electrocuted,” the eyewitness recounted.
The deceased left behind one child.
Source:www.energynewsafrica.com
As the global push for electric vehicles (EVs) is increasing, the West African nation, Ghana, does not want to be left behind in this initiative.
To this end, Ghana’s Southern electricity distribution company, ECG, is collaborating with POBAD International, a wholly-owned Ghanaian technology firm, to install electric vehicle (EV) charging systems in some strategic locations across the country to enable Ghanaians who have taste for EVs and want to own one to be able to charge them.
In 2019, Ghana’s electricity regulator, Energy Commission, launched the ‘Drive Electric Initiative’ as part of effort to promote the use of electric powered vehicles for the transportation needs of Ghanaians.
Since the launching of the initiative, ECG started collaborating with market players to closely monitor the EV trend in Ghana in order to focus on the provision of appropriate and safe charging systems for EV users.
On Thursday, November 19, 2020, ECG, in collaboration with POBAD International, launched the EV charging system with a test run of an EV to officially add Ghana to the register of countries that are introducing the new technology in their transportation industry.
Paul Badoo, Managing Director of POBAD Int. Ltd explaining how the electric vehicle charging system works
Speaking at the launching of the initiative, Managing Director of ECG, Kwame Agyeman-Budu, said his outfit had signed a Memorandum of Understanding (MoU) with POBAD International Ltd to pilot the operations of EV charging system in strategic locations in Accra over the next three months.
Mr Agyeman-Budu who speech was read for him by his deputy, Ing. Jones Ofori Addo said the pilot would afford ECG the opportunity to carry out a thorough engineering and commercial studies into the effects of the EV charging system on EC’s electricity distribution networks, the energy consumption rate of the different charging systems and any other issues.
According to him, the results from the pilot would guide all interested parties, namely automobile dealers, EV charging companies, EV users, regulators and policy makers to contribute meaningfully to the development of the EV subsector in Ghana.
Mr Agyeman-Budu said the EV sector provides enormous opportunities not only for ECG but also for the corporate and business community in Ghana.
“We wish to call on the Ghana Standards Authority, the Energy Commission, the Public Utilities Regulatory Commission (PURC) and other relevant bodies and institutions to work together with ECG to develop standards and regulations to guide and govern the growing EV sector in Ghana,” he said.
Managing Director of POBAD International Ltd, Paul Badoo said his outfit would also partner with the Northern Electricity Distribution Company (NEDCo) to replicate the initiative in the Northern part of the country.
So far, the company has installed two EC charging sites at the A&C Mall in East Legon, Accra, and Stanbic Heights, Airport City.
“More of these sites will be completed in 2021,” he said.
The company plans to install ultra-fast EV charging hardware which would charge electric vehicles between 15 and 30 minutes at their partner filling stations along the major highways to offer support to EV drivers when they travel between towns and other regions in Ghana.
“As we strive to serve clients’ cutting edge in Electric Vehicle charging technology, POBAD intends to install a few wireless EV charging hardware to prepare customers for the future,” Mr Badoo stated.
Touching on the payment option, he said “payment for the use of EV charge-up hardware will be strictly cashless.The use of a bank issued credit and debit card, or an authorised mobile pay Apps will be made possible when our integration with some financial service partners is completed in the near future.”
Ing. Jones Ofori Addo, Deputy Managing Director at ECG
Chief Director of the Ministry of Energy, Lawrence Apaalse, who represented the sector Minister, noted that the advent of EVs in the country would help to make good the utilisation of the excess energy the country has been paying for.
He allayed the fears of those who think that the electricity consumption by EVs could limit electricity supply to domestic consumption.
“Already, we have more than we need for our daily use and so filling in more demand would rather help us consume the excess we are paying for without utilising it,” he explained.
Mr Lawrence Apaalse, Chief Director of the Ministry of Energy
Mr Apaase commended ECG for the initiative, saying it would not only benefit individuals but also help Ghana by helping the country stay compliant with United Nations Development Goals especially Goal 7, which is about clean energy.
The Director for Renewable Energy and Energy Efficiency at the Energy Commission, Mr. Kofi Agyarko, who lauded the collaboration between ECG and POBAD International Ltd, assured the commitment of Energy Commission to ensure that standards and regulations are put in place soon to regulate the Electric Vehicle industry in Ghana.
Kofi Agyarko,Director for Renewable Energy and Energy Efficiency at the Energy CommissionNana Addo Tetebo, President of Ghana Electrical Contractors Association
Kosmos Energy, a leading deepwater exploration and production company has recorded a net loss of $50 million in the third quarter of 2020.
According to the company’s third quarter results, it generated a net loss of $37 million or $0.09 per diluted share, adding that when adjusted for certain items that impact the comparability of the results, the company made an adjusted net loss of $50 million or $0.12 per diluted share for the third quarter of 2020.
“Net production (2)-56, 700 barrels of oil equivalent per day (boepd) with sales of 59, 500 boepd revenue- $225 million, or $41.05 per boe,” the report stated.
Kosmos production expenses for the period was $84 million, $15.39 per boe, adding that, general and administrative expenses for the period was $18 million, while $9 million cash, $9 million non-cash was chalked for equity-based compensation.
Touching on capital expenditure, the report noted that $53 million was made for based business capital expenditure and $47 million Mauritania and Senegal non-cash capital expenditures.
“At the end of the third quarter, the company was in a net underlift position of approximately 0.8 million barrels of oil,” the report explained.
Commenting on the company’s third quarter performance, Chairman and Chief Executive Officer of Kosmos, Andrew G. Inglis said: “Kosmos delivered robust operational performance in the third quarter, despite elevated storm activity driving temporary shit-ins in the Gulf of Mexico. Production in Ghana and Equatorial Guinea was in line with expectations, with the reliability improvements seen in the first half of the year continuing into the second half.”
He further explained that with impact of COVID-19 and one of the worst storm season on record in the Gulf of Mexico, full year production is expected to come in at 61,000-62,000 barrels of oil equivalent per day.
With reference to Mauritania and Senegal, Mr. Inglis stressed that the partnership continues to make good progress with Phase 1 of the Torture project expected to be around 50 percent completed by year end.
The operation in that area, he maintained, has put significant effort into optimising Phase 2, which they believe is now the most competitive brownfield LNG market backdrop, adding, “the Torture project is expected to provide an excellent return on investment for Kosmos.”
With what is happening in the Gulf of Mexico, the Kosmos CEO said its financial facility and frontier exploration asset sale to Shell, they have taken additional steps to bolster the balance sheet and have ample liquidity to navigate the current period of low and volatile commodity price.
Source: www.energynewsafrica.com
The Progressive People’s Party, one of the opposition political parties in the Republic of Ghana, has promised to double the penetration of renewable energy in the country’s national energy mix from the 10 percent to 20 percent should it win power in the 2020 general elections.
Ghana is a signatory to the Paris Climate Change Agreement and has promised to ensure 10 percent renewable energy penetration in the country’s energy mix.
Though the country missed the 2020 target of achieving the 10 percent penetration of renewable energy, the government has initiated a number of projects to ensure that the country meets its renewable energy penetration target.
However, the PPP’s Director for Research and Spokesperson for Energy and Sustainable Jobs, Paul Agyemang Bioh made the party’s intention known at the maiden dialogue series organised by the Institute for Energy Security (IES) that renewable energy should be given the attention.
The dialogue series, which was the maiden edition hosted by the Institute, focused on the Energy Manifestos of the political parties contesting this year’s election.
The dialogue sought to bring together industry players in Ghana’s energy sector to interrogate the various policies and plans of the political parties within the country’s energy sector.
The platform also gave the opportunity to drive the interest and make necessary recommendations in Ghana’s transition from fossil fuel to renewable energy.
Mr. Agyemang Bioh intimated that the proposal by the PPP is in tandem with the current global trajectory of event in the energy sector that has been catapulted by the global pandemic that struck most parts of the globe from February this year.
He said, “The PPP is pushing for not 10 percent but 20 percent of renewable energy capacity in our electricity mix.”
Mr. Agymang Bioh also offered the plan of the PPP on biomass.
He said, “Biomass is heavily used in our rural and peri-urban areas and PPP believes that the push of LPG into this sector will help so that there will be less pressure in our forests.”
Speaking on partnerships and participation in the sector’s growth, he explained that the PPP would work to limit unwarranted political administration interference in the non-policy aspects of the energy sector in Ghana as it seeks to work with players in the energy sector to optimise the existing energy economy for rapid industrialization.
French Total plans to increase its investments in Libya’s oil industry, the National Oil Corporation said, adding it had discussed with the company raising Libya’s production to “the highest levels.”
Total has stakes in several Libyan oil fields, including the nation’s biggest, Sharara.
The field, along with many others, was shut down for more than eight months this year after groups affiliated with the eastern government blockade oil export terminals, which pushed Libya’s oil output from above 1 million bpd to less than 100,000 bpd.
In late September, when the Libyan National Army started lifting the blockades from the terminals, production began increasing and has to date topped 1.2 million bpd. However, earlier this month, NOC warned that this level of production may not be sustainable.
“The National Oil Corporation asserts that it may not be able to sustain the current production levels and these levels may be reduced or totally ceased under the reluctance of some entities and their hindering of NOC’s efforts to increase production and restore the prosperity of the national economy,” the company said in a statement.
Even so, Libya has signaled it would not be joining the OPEC+ production control effort, from which it has been exempted due to the frequent production outages caused by the conflict between the eastern-affiliated LNA and the Government of National Accord, which was recognized by the UN.
In fact, NOC’s chairman Mustafa Sanalla recently said that Libya might consider joining the cuts only when it reaches a production level of 1.7 million bpd. This would be more than the country produced prior to the 2011 civil war that saw the end of the rule of Muammar Ghadaffi.
Libya’s fast production ramp-up has added one more pain to OPEC’s already substantial load as the cartel still grapples with a global oil supply overhang that has been slow to decline amid the continuing pandemic. The outlook remains gloomy, too, with reports suggesting there may be internal divisions in OPEC regarding whether it should extend the current rate of cuts, deepen them or reduce them as initially planned.
Source: Oilprice.com
By: NJ Ajuk, Chairman of African Energy Chamber
If I called 2020 a terrible year for the oil industry, no one would take exception. Demand collapsed in the spring, during the first wave of the COVID-19 pandemic, and it has yet to recover fully. Prices then collapsed in April as OPEC and Russia walked away from production curbs and flooded the market with crude that no one wanted or needed, and once again, they have yet to regain all of the ground they have lost.
There have been a few bright spots, though. One of those is Libya, which has managed to overcome some very daunting challenges. I’d like to tell you the story of how that happened.
Starting Near Rock Bottom
When the African Energy Chamber (AEC) started drawing up our 2021 Africa Energy Outlook, which was released on Nov. 10, Libya’s oil industry was still struggling in the face of persistent civil conflict.
At that time, the country was still producing less than 100,000 barrels per day (bpd) of crude, down from more than 900,000 bpd at the start of 2020. Its refineries, pipelines, and Mediterranean export terminals were almost entirely idle because of the blockade mounted by the Libyan National Army (LNA), a militia headed by Field Marshal Khalifa Haftar, during a major offensive campaign that began in mid-January. As a result, most of its oil fields were also idle. The National Oil Corporation (NOC), which was determined to remain neutral in the conflict, made several attempts to lift force majeure declarations and recommence production over the summer, but without success.
These struggles are addressed in our 2021 forecast: “Libya struggles to maintain (its) sustainable oil production capacity (of) around 1 million bpd. In the latest ongoing struggle for power between GNA, an UN-recognized body (set up) to govern Libya, and LNA forces, (an) army of rebels led by General Khalifa Haftar (supported by Russia, Egypt, and UAE), force majeure has been imposed on oil exports in the country from January 2020. Due to this, currently, Libya’s oil production has plummeted to almost 10% of its capacity.”
Because of all these challenges, Libya has languished. It has had no way of monetizing its primary export commodity and source of cash. It has lost many billions of dollars. It hasn’t even been able to extract or refine enough crude to cover domestic demand for fuel.
And it certainly hasn’t succeeded in resolving the disputes over regional distribution of oil revenue that helped drive the LNA’s attacks on the Government of National Accord (GNA), an interim government based in Tripoli and backed by the United Nations. Nor has Libya been able to find a way to rid tank farms and other oil infrastructure of the foreign soldiers and mercenaries deployed by Turkey and the other third parties with an interest in the country.
But things began to change in mid-September, when the LNA and its allies sat down with the GNA for yet another round of UN-brokered peace talks.
A Month of Progress
Initially, there didn’t seem to be much reason for optimism. After all, the two sides had failed to come to terms so many times before!
This time, though, was different.This time, the GNA and the LNA struck a deal. They didn’t go so far as to sign a peace agreement. Instead, they announced a one-month cease-fire deal on Sept. 18. The parties indicated they hoped to draw up a final agreement within the next month. They also made clear that Haftar had agreed to lift the oil blockade while the temporary deal remained in force.
Immediately after the cease-fire was declared, the NOC got right to work. It started bringing coastal terminals back online so that Libya could export oil again. Its regional production units began lifting force majeure declarations on one oil field after another.
It started bringing refineries back into production. It started the process of inspecting infrastructure facilities to determine whether they were “safe” — that is, not occupied by foreign troops — and therefore eligible to resume regular business operations.
And by the time the one-month cease-fire expired on Oct. 18, the NOC had already managed to bring oil production back up to 500,000 bpd.
This was a huge achievement. Think of it! In just a few short weeks, Libya managed to increase output by more than 400,000 bpd, thereby regaining about half of the ground it lost as a result of the LNA blockade. And it did so despite the extensive damage inflicted on oil infrastructure during the blockade.
There was a problem, though.
Big Breakthroughs
When the cease-fire ended on Oct.18, the GNA and the LNA hadn’t yet achieved their goal of signing a final agreement. Fortunately, though, they had agreed to extend talks for another six days. As a result, the LNA did not impose another blockade, and the NOC and its subsidiaries continued to put fields, pipelines, terminals, and refineries back into action.
Then on Oct. 23 —one day ahead of the new deadline — there was another breakthrough during talks in Geneva.
On that day, the UN Support Mission in Libya (UNSMIL) declared that the parties had finalized a more comprehensive cease-fire agreement. It described the deal as permanent and applicable to the entire country.
What’s more, the agreement also removed one of the biggest problems facing the Libyan oil industry — the challenge posed by the foreign soldiers and mercenaries still occupying oil fields and infrastructure facilities. According to Stephanie Williams, the UN’s Acting Special Representative for Libya, the deal made provisions for all such troops to leave Libya within three months.
As a result, the NOC has been able to push forward with its campaign to restart the oil industry.
On Oct. 26, the company said in a statement that it was in a position to “(declare) the end of the blockades at all Libyan fields and ports.”
Then on Nov. 9, it announced that it had brought production up to more than 1 million bpd. (To be exact, it reported that oil output had reached the level of 1,036,035 bpd.)
This is another huge achievement. Again, think of it! In less than two months, Libya has managed to go from producing just a fraction of its usual volume to more than 1 million bpd. It has pushed crude oil output up more than tenfold, bringing major fields such as Sharara and El Feel back into action. It has also succeeded in reactivating the export terminals on the Mediterranean coast and is working to ramp up processing operations at its refineries.
Challenges and Lessons
All of these successes make for a good story, don’t they? Even better, the story is true.
(I’d like to think it also reflects well on the AEC, which did predict in our Africa Energy Outlook that Libyan crude oil production was set to recover as civil conflict simmered down.)
But is the story really over? Probably not. First, we have to wait and see whether the cease-fire holds. All of the parties involved seem optimistic, but they haven’t yet revealed whether they’ve managed to resolve quarrels about how to distribute oil revenues. The LNA, which controls most of southern and eastern Libya, has often claimed that the GNA, which holds the northwestern part of the country, keeps an unfairly large portion of these revenues for itself. In turn, their conflict has negatively affected NOC, despite the company’s attempts to remain neutral so that it could continue operating (and bringing in money) despite the civil conflict. Those challenges likely will continue if the question of oil revenue distribution isn’t answered to the satisfaction of all concerned parties.
Next, if Libya does manage to hold together and keep output up, it will have to come to terms with OPEC, which is still working with Russia and other countries to support oil prices with a regime of production quotas. Libya hasn’t been subject to those quotas this year because of the blockade, but it’s now extracting more than 1 million bpd. What’s more, it expects to bring production up to 1.3 million bpd within the next few months, and Mustafa Sanalla, the head of the NOC, has said that Libya won’t fall into line with the quota system until it can stabilize yields at 1.7 million bpd. OPEC may not agree with that proposition, especially since world crude prices have fallen in response to reports of renewed development activity in Libya.
Whatever the case, there are at least two lessons to be learned from Libya’s recent victories.
One is persistence. Despite the repeated failure of attempts to work out an agreement between the LNA and the GNA, the UN and other parties did not give up. This should be a lesson for other African countries that count civil conflict as one of the obstacles to the development of oil and gas resources. Certainly, this approach appears to have benefited South Sudan, which has been embroiled in civil war for most of the time since it attained independence in 2011. The country has been under the rule of a unity government since the finalization of a peace agreement between President Salva Kiir Mayardit and his long-time rival Riek Machar Teny Dhurgon earlier this year.
The other is the necessity of paying attention to regional issues. The conflict between the GNA and the LNA wasn’t just a battle for supremacy. It was also a quarrel over how best to distribute revenues between the central government and the regions that were home to most of the oil fields and other infrastructure that generated those revenues. This is definitely one of the lessons that Nigeria has had to learn. The West African country’s federal government has seen over and over again that the residents of oil-bearing regions such as Ogoniland are willing to fight if they believe they are being denied a fair share of the money that comes from the places where they make their homes.
Neither of these lessons is easy to absorb. It’s easy to give up on negotiations when you’ve already failed repeatedly, and it’s easy to ignore the periphery if you’re one of the lucky people in the center. But I’d like to see other African producers think about them as they watch Libyan production continue to ramp up.
Source: www.energynewsafrica.com
Report reaching energynewsafrica.com indicates that three out of 14 victims who suffered various degree of injuries following a gas explosion incident at the Mighty Gas filling station in Ho, in the Volta Region of the Republic of Ghana, have died while on admission at the Ho Teaching Hospital.
According to Kasapafmonline.com’s sources at the hospital, the deceased were two males and a female.
Though the portal could not give details of the deceased persons, it said they included a mother of three, who was said to have gone to the fuel station to purchase LPG for her bakery business but was caught up in the fire.
Energynewsafrica.com reported last Wednesday, 11th November, 2020, of a gas explosion at Mighty Gas Filling Station in Ho.
The explosion left 14 persons including 12 males and two other females suffering from burns.
The victims included pump attendants and other customers who had gone to fill their cylinders.
Among them was a lady undertaking her National Service with the Ho Technical University.
Meanwhile, some of the other 11 injured persons are said to have been discharged.
Source: www.energynewsafrica.com
He said upon his assumption of office in 2017, he directed the Ministry of Energy, together with the Bui Power Authority, to re-develop the hydro power generating stations, including that at Tsatsadu.
Speaking at the commissioning of the 45kW Tsatsadu Generation Station at Alavanyo-Abehenease in the Hohoe Municipality of the Volta Region, President Akufo-Addo said the project is a demonstration of the commitment of his administration to develop the country’s energy resources.
The Tsatsadu project was initially designed as a 30kW stand-alone system, but was redesigned and upgraded to a 45kW grid-connection system based on the outcome of the additional studies.
The project was funded through BPA’s internally generated fund of US$400,000 with support from the Danish and Chinese governments through the Renewable Energy Technology Transfer (UNDP-RETT) Project.
The 45kW Tsatsadu Micro-hydro Generation Station was constructed by local young engineers of the Bui Power Authority.
The Paramount Chief of Alavanyo, Togbuiga Tsedze Atakora was full of praise for President Akufo-Addo and Minister for Energy John-Peter Amewu for the numerous development projects in the area.
He said the people were particularly happy that through his leadership and the support of other institutions the recurring problems of Nkonya Alavanyo clashes was not happening.
“Mr. President, the only two things God deprived me of are dancing and singing. If I had a beautiful voice and good dancing skills I would have sung and danced to appreciate you”, he added.
Source: www.energynewsafrica.com
The 45kW Tsatsadu Micro-hydro Generation Station was constructed by local young engineers of the Bui Power Authority.
The Bui Power Authority collaborated with the United Nations Industrial Development Organisation (UNIDO), the International Network on Small Hydro Power of China (IN-SHP) and Ghanaian Energy sector agencies to execute the project.
Bui Power Authority expresses its appreciation for the support from the Paramount Chief and people of Alavanyo and the Foyer de Charité Catholic Retreat Centre in releasing the portion of their land required for the project.
According to him, the results from the pilot would guide all interested parties, namely automobile dealers, EV charging companies, EV users, regulators and policy makers to contribute meaningfully to the development of the EV subsector in Ghana.
Mr Agyeman-Budu said the EV sector provides enormous opportunities not only for ECG but also for the corporate and business community in Ghana.
“We wish to call on the Ghana Standards Authority, the Energy Commission, the Public Utilities Regulatory Commission (PURC) and other relevant bodies and institutions to work together with ECG to develop standards and regulations to guide and govern the growing EV sector in Ghana,” he said.
Managing Director of POBAD International Ltd, Paul Badoo said his outfit would also partner with the Northern Electricity Distribution Company (NEDCo) to replicate the initiative in the Northern part of the country.
So far, the company has installed two EC charging sites at the A&C Mall in East Legon, Accra, and Stanbic Heights, Airport City.
“More of these sites will be completed in 2021,” he said.
The company plans to install ultra-fast EV charging hardware which would charge electric vehicles between 15 and 30 minutes at their partner filling stations along the major highways to offer support to EV drivers when they travel between towns and other regions in Ghana.
“As we strive to serve clients’ cutting edge in Electric Vehicle charging technology, POBAD intends to install a few wireless EV charging hardware to prepare customers for the future,” Mr Badoo stated.
Touching on the payment option, he said “payment for the use of EV charge-up hardware will be strictly cashless.The use of a bank issued credit and debit card, or an authorised mobile pay Apps will be made possible when our integration with some financial service partners is completed in the near future.”
