Mozambique Secures $420m Grants For Transmission Upgrades

The World Bank Group has approved $420 million in grants to strengthen Mozambique’s energy transmission system. The grants will be issued through private sector investments to modernize the country’s energy transmission capacity for domestic and regional markets. The grants will also help expand the country’s energy generation capacity. Furthermore, the project is to be co-funded by a $24 million grant from a Norwegian Trust Fund. Mozambique will use the grants to finance its Temane Regional Electricity Project (TREP), which includes the construction of a 563km high-voltage line between Maputo and Vilanculos/Temane. A 400MW combined cycle gas-to-power generation plant at Temane will also be constructed. The project will enable private investment of around $750 million for generation. “In addition to enhancing the transmission and generation capacities, the TREP will finance technical studies in support of regional power integration and renewable technologies in power system planning and operation. It will also support studies on power sector investment plans, including Mozambique’s role in regional trading”, indicates Zayra Romo, the project’s senior energy specialist and task team leader. “It is also fundamental to developing the Mozambican domestic power system, expanding energy access, and ensuring the secure, affordable, and sustainable power supply that is one of the key drivers of Mozambique’s economic and social development”, said Mark R. Lundell, the World Bank Country Director for Mozambique. “The Temane project is key to increasing opportunities for power trade among SAPP countries. Despite the abundance of energy resources in the subregion, lack of cross-border interconnections remains a major constraint. The full integration of SAPP countries’ power systems and more power trade could bring savings of $42 billion in investment and operating costs till 2040. The Bank is committed to helping southern Africa realize these potential savings”, said Deborah Wetzel, the World Bank Director for Regional Integration for Africa, the Middle East and Northern Africa.  

Ghana: Tariff Increment Will Help Us To Complete Our Stalled Projects-GRIDCo CEO

Jonathan Amoako- Baah, CEO of GRIDCo   The Chief Executive Officer of the Ghana Grid Company (GRIDCo), a power transmission company in the West African country, has explained that the 11.17% increment in electricity tariff will enable them to raise some revenue to continue their projects which were stalled because of lack of funds. Mr Jonathan Amoako-Baah said the lack of funds has stalled most of their project. The utilities regulator, Public Utilities Regulatory Commission (PURC), announced 11.17% increment in electricity tariff on Friday. The decision followed extensive stakeholders consultations with proposals from Electricity Company of Ghana(ECG), Ghana Grid Company(GRIDCo), Northern Electricity Distribution Company (NEDCo), Power Distribution Services (PDS) Ghana Limited, Volta River Authority (VRA) and Enclave Power Company. Speaking in an interview with energynewsafrica.com via telephone, Mr Amoako Baah, who welcomed the increment, however, said they had expected more, but explained that they would accept the 11.17% for the time being. “We will console ourselves with it,” he said. In his view, he noted that increasing utility tariffs was not what they were mostly concerned about, but rather the ability for consumers. Touching on how the increment could help, he said the increment would bring them relief, for they would be able to continue the 330kV transmission line from Kumasi to Kintampo, which has stalled because of lack of funds. He added that it would help them to work on the 161 kV transmission line from the Volta Substation in Tema to Achimota so that transmission losses occurring on that line would be reduced. “We will also be able to strengthen our transmission lines in the Western Region, especially the transmission line from Tarkwa to Prestea.  

Ghana: EU Supports Energy Commission With €30million To Implement Energy Efficiency Programme.

The European Union (EU), through Agence Francaise De Development (AfD), has made available 30 million Euros to the Energy Commission for the implementation of energy efficiency and renewable energy projects under Sustainable Use of Natural Resources and Energy Finance Programme (SUNREF) in the West African country, Ghana. The funds would be lodged with some selected Ghanaian financial institutions which would, then, provide green credit loans to industries to enable them finance their small and medium scale renewable energy and energy efficiency projects. The SUNREF Ghana programme, which emanated from the conclusion of a feasibility study financed by AFD, which highlighted the urgent need for investments in renewable energy and energy efficiency, is expected to promote the development of a low carbon economy by financing the development of renewable energy and energy efficiency solutions. At a brief signing ceremony at the Energy Commission’s head office in Accra on Friday, the French Ambassador to Ghana, Her Excellency Mrs Anne Sophie Ave, and the EU Ambassador to Ghana, H.E Mrs Diana Acconcia, highlighted the main features of the SUNREF programme. The programme focuses on three pillars namely credit lines financed by AFD of up to 30 million with local banks, a technical assistance facility with support from the European Union-Africa Infrastructure Trust Fund (EU-AITF) of 2 million and investment grant scheme of 2.4 million to provide additional incentives to green investments. This intervention from AFD forms part of an integral part of the mandate of the Energy Commission in the promotion and development of renewable energy and energy efficiency initiatives in the country. Additionally, SUNREF would offer a platform, under the TAF, to build the capacity of Energy Commission, key stakeholders and partner banks of advanced technologies and method, allowing them to offer better advice and products to their customers. The outcome of these projects would immensely contribute to reduction in energy consumption by up to 7GWh yearly, and increase the shares of RE in the overall energy mix, and, consequently contribute to reduction of carbon dioxide emissions.  

Zimbabwe: Gov’t To Pay South Africa’s Eskom US$10m In Bid To Ease Power Shortage

Zimbabwean government has disclosed that it will this week pay US$10m to South Africa’s power utility Eskom as part of plans to unlock at least 400MW to ease power shortages in the country. The southern African country, which according to power utility Zesa was producing 1200MW as of Sunday, needs at least 1700MW per day to meet demand. Over the years it has relied on Eskom and Mozambique’s HCB for additional power. However, a combined debt of US$83m to the two entities had meant limited supply of just 50MW from each. Speaking during an informal briefing on Sunday, Zimbabwean Finance Minister Mthuli Ncube told journalists that “we will be paying Eskom US$10m this coming week.” He said this (payment to Eskom), as well as negotiations government had had with the Mozambican government last week, will ease load shedding which had gone up to stage 2, or 19 hours without power. Meanwhile more and more Zimbabwean companies are turning to off grid power supplies with solar being the preferred alternative. Crocodile breeder Padenga Holdings is close to self sufficiency and has put up solar plants producing 1MW. Telecomms giant Econet Wireless in April commissioned a 466KW solar power plant at its Willowvale industrial complex in Harare, the largest commercial and industrial carport and roof mount installation of its kind to be deployed in the country. Old Mutual is also working on plans to install solar panels on the rooftop all its buildings with several having gone through the process. Platinum miner, Zimplats also said it is conducting feasibility studies to put up a solar plant that will cater for its energy needs. A technical partner has already been engaged to conduct a feasibility study for a solar farm believed to be able to provide 160MW.

Mozambique To Keep TechnipFMC Busy

  Anadarko Petroleum’s Mozambique Golfinho/Atun development is going to keep TechnipFMC    very busy. The company has been awarded a number of subsea contracts by Anadarko Mozambique Area 1. TechnipFMC was awarded a major EPCI contract for the subsea hardware system through its wholly owned UAE incorporated subsidiary, Technip Middle East FZCO. TechnipFMC will execute the offshore installation scope with its consortium partner Van Oord, through their wholly owned UAE incorporated subsidiary, Van Oord Gulf FZE, and in cooperation with strategic major subcontractor, Allseas. In addition, it was awarded separate contracts under its wholly owned US incorporated subsidiary FMCTI (FMC Technologies Inc.), to provide subsea hardware in support of well construction and the EPCI scope. Arnaud Pieton, President Subsea at TechnipFMC, stated “We are extremely pleased to have been selected for the majority of the Mozambique LNG subsea scope. TechnipFMC will execute its scope utilizing our integrated model (iEPCI TM ) and will highlight our industry leading subsea capabilities to help maximize Anadarko’s overall project value. This award is a testament of our 25-year partnership with Anadarko and will further expand our presence in Mozambique.” Further to these awards, TechnipFMC and Allseas have entered into a Strategic Collaboration Agreement aimed at jointly pursuing specific deepwater projects where the assets, products and capabilities of both companies are complementary. This Strategic Collaboration will give both companies an enhanced access to world-class opportunities. It will allow our clients to benefit from the unique joint capabilities and integrated delivery assurance of TechnipFMC and Allseas on their most ambitious projects, such as Golfinho. In support of these awards, TechnipFMC is increasing its footprint in Mozambique and opened a new office in Maputo, Mozambique, in February 2019. Through extensive cooperation agreements with local universities such as UEM and Uni Lurio, TechnipFMC will offer unique training opportunities to young Mozambican engineers that will continue building on our local expertise.   Source: petroleumafrica.com

Nigeria: Oil Flows Hit 2.32 Million BPD

Melo Kolo Kyari is the newly appointed Nigeria National Petroleum Corporation (NNPC) GMD,    Nigeria’s daily oil production has hit 2.32 million bpd, the country’s National Petroleum Company has revealed. The former Group Managing Director of NNPC, Maikanti Baru, revealed this recently to a delegation of the Nigerian Union of Journalists (NUJ) in Abuja. “Since we came in July 2016, we are focused on increasing production of oil and gas and condensates. At some point, our national combined production was about a million barrels; I am happy that as at the end of 2018, we have moved on averaging last year, about 2.1 million barrels. As I am speaking, this morning, I look at our production figures, combined oil and condensates we are pushing 2.32 million bpd,” he said. According to Baru, the stability and ability to push production has come as a consequence of several factors, both internally and externally. Baru was relieved of his post last Thursday.      

Nigeria: Buhari Sacks Baru, Appoints Kyari As New NNPC GMD

New NNPC GMD, Mele Kolo Kyari.    Nigerian President Muhammadu Buhari has appointed Mele Kolo Kyari as the new Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC). The leader of the most populous West Africa country also appointed seven Chief Operating Officers alongside Kyari. The newly appointed officers are to work with current officeholders till July 7, 2019, for a smooth transition to take place. This was disclosed in a statement signed on Thursday by the NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu. “President Buhari has directed that the New GMD and the newly appointed COOs work with the current occupiers of the various offices till 7th July 2019 towards a smooth transition on 8th July 2019 when their appointments would take effect to ensure a smooth transition. “However, the appointment of Farouk Garba Said (North West), who is replacing a retiring Chief Operating Officer, is effective from 28th June 2019,” the statement read in part. The newly appointed Chief Operating Officers are:
  • Roland Onoriode Ewubare (S/South) – COO Upstream
  • Mustapha Yinusa Yakubu (N/ Central) – COO Refining & Petrochemicals
  • Yusuf Usman (N/East) – COO, Gas & Power
  • Lawrencia Nwadiabuwa Ndupu (S/East), COO Ventures
  • Umar Isa Ajiya (N/West) – Chief Financial Officer
  • Adeyemi Adetunji (S/West) – COO, Downstream and
  • Farouk Garba Said (N/West) – COO, Corporate Services.
Sacked NNPC GMD, Maikanti Baru has however congratulated the newly appointed officers. Until his new appointment, Kyari, a geologist, was Group General Manager, Crude Oil Marketing Division of NNPC and also doubled, since May 13, 2018, as Nigeria’s National Representative to the Organisation of the Petroleum Exporting Countries (OPEC). “He is a quintessential crude oil marketer with prerequisite certification and outfield pedigree in Petroleum Economics and crude oil and gas trading. “In the last 27 years, he had traversed the entire value chain of the Petroleum Industry, with exceptional records of performance. “Under his watch, the Crude Oil Marketing Division has recorded noticeable transformation in the management and sales of various Nigeria’s crude oil grades via an infusion of transparency and automation of the processes,” Ughamadu said. Kyari would be the 19th GMD of the NNPC.   Source: shipsandports.com.ng

Centurion Law Group Acquires German Energy Group

Centurion Law Group, a leading pan-African legal and energy advisory group has acquired Africa Counsel GMBH, an Africa-focused energy firm specializing in acquisitions, divestitures for German companies in the energy sector.  The group announced this in a statement they issued on Friday, 21 June, 2019, and copied to energynewsafrica.com on its behalf by APO Group.  “Acquiring Africa Counsel complements our Energy activities in Europe and sets us on a path of doing great deals for clients expanding into the African energy space,” said NJ Ayuk, CEO of Centurion Law Group. “Africa Counsel’s core team of skilled specialists is supported by a wide network of independent subject-matter experts, whom we believe will help in safeguarding the investments of many German companies in Africa”, he added. Centurion recently announced it will be pursuing a public listing this year with one of Europe’s leading stock exchange. The group provides outsourced legal representation and covers a full suite of practice areas for its clients, including arbitration and commercial litigation, corporate law, tax and anti-corruption advisory and contract negotiation.  

Aker BP Cleared To Use Rigs On Two North Sea Projects

Norwegian E&P player Aker BP has received consents from the Petroleum Safety Authority (PSA) for the use of the Deepsea Stavanger and Maersk Invincible rigs for exploration drilling in the North Sea and development of Valhall Flank West, respectively. The first consent is for the exploration drilling of the Liatårnet well, designated 25/2-20. It is located in the Aker BP-operated production license 442 in the North Sea. The well will be drilled at a water depth of 110 meters in the so-called Noaka area. Noaka stands for “North of Alvheim, Krafla, and Askja,” a collection of discoveries east of Frigg in the central North Sea. The PSA said on Friday that the drilling was scheduled to begin on June 26 and expected to last at least 12 days. It will be drilled by the Deepsea Stavanger drilling rig after completing the drilling of wildcat well 15/6-16 S for Aker BP in production license 777. According to the safety watchdog, the well will be drilled by the Deepsea Stavanger mobile drilling rig. The Deepsea Stavanger is a semi-submersible drilling rig of the GVA 7500 type, owned and operated by Odfjell Drilling. It is worth reminding that the Norwegian Petroleum Directorate already granted a drilling permit for this well on Monday, June 17. The second consent relates to the use of the Maersk Invincible jack-up drilling rig on the Valhall field and applies to the drilling of production wells on the Valhall Flank West development. Valhall is a field in the southern part of the Norwegian sector in the North Sea. It was discovered in 1975, and the initial plan for development and operation (PDO) was approved in 1977, and production started in 1982. A PDO for Valhall Flank West was approved in 2018. Valhall Flank West will be developed from a new Normally Unmanned Installation, tied back to the Valhall field center for processing and export. The platform will be remotely operated from the Valhall field center. First oil is expected in the fourth quarter of 2019. Source: Offshoreenergytoday.com        

Senegal’s President Launches Investigation On Oil Corruption Claims

His Excellency  Macky Sall, President of Senegal    An inquiry into how Senegal’s energy contracts were allocated has been launched by the country’s Ministry of Justice. The inquiry follows a report by the BBC alleging that the president’s brother was implicated in a suspicious energy deal linked to gas fields off the country’s coast. President Macky Sall has said that he’s keen for the truth to be ‘re-established’ suggesting that the reports are an attempt to ‘destabilize’ the country and oust the incumbent government. The allegations have energized Sall’s administration, especially as the president originally came to power vowing to root out corruption. With the scandal landing so close to home, it will be a watershed moment for the Senegalese government’s efforts to boost the powers of the judiciary. The accusations of corruption date back to the early 2010s, when a company with no track record in the industry was awarded a license to explore two blocks by then-president Abdoulaye Wade. The decision sparked protests, prompting newly elected president Macky Sall to approve an urgent investigation. However, cancelling the contract would have been illegal and could have seen Senegal dragged before international tribunals. As a result, the contract was subsequently ratified, and the exploration rights passed to the Timis Corporation operated by Frank Timis, who has been in the spotlight in the mining industry for his business practices. BBC Panorama and Africa Eye are claiming to have evidence showing that Aliou Sall was employed by the Timis Corp. from 2012 and that he received a ‘secret bonus’ of £250,000 via his company, Agritrans, in 2014. Aliou Sall has denied receiving any such payment and has labelled the BBC’s report ‘totally false’. The BBC investigation also showed that a schedule of ‘royalty payments’ worth between $9 billion and $12 billion is due to be funneled to the Timis Corp. over the next four decades, which brought BP into the investigative mix. Geraud Moussarie, head of BP in Senegal, has downplayed the reported royalty figure as ‘so fake and exaggerated that it is complete fantasy’ and has dismissed the suggestion that Senegal is being cheated out of its revenues. Experts have also agreed with this statement, arguing that it’s unlikely for oil companies to pay royalties to other companies. President Sall’s anti-corruption record so far has been promising with a substantial amount of progress being made in the years since he first came into office. Since Sall came into office the country was featured this year by Transparency International as among the top improvers. Overall, the country has jumped 27 slots in the global ranking, to 67th in 2018 from 94th in 2012, the year Sall was elected.            

Ghana: Shutdown Of Bui Power Plant Won’t Lead To Power Outages – Fred Oware

Chief Executive Officer of Bui Power Authority (BPA) in the West African country, Mr Fred Oware has allayed the fears of the public of a possible power crisis due to a planned maintenance work on one of the hydro dam’s power generating plants. The engineers have shut down and dismantled one of the three units to fix some recurrent faults. The authority requires $4.6 million to complete maintenance works that will return the hydro power dam to its full power generation capacity of 400 megawatts. This has raised fears that a further delay of the $4.6 million will lead to a possible power crisis in the country. But speaking on Accra based classfm, Mr Oware said there will not be any power crisis in the country. He said: “Now, because of this arrangement, one might suspect that because we’ve shut down one plant we cannot generate what is expected of us. As a matter of fact, we are just about mid-year but we’ve already done more than 60 per cent of our annual requirement, so, we are actually in surplus. “My personal conviction is that we’ll be able to do more than the 60 which has been allocated for us for this year in spite of the plant shutdown at each point in time throughout the rest of the year. We’ll also be able to generate our annual demand that has been placed on us so there shouldn’t be any fear of power crisis.” Source: ClassFMonline.com

Massive Fire And Series Of Explosions Rock South Philadelphia Refinery

A massive fire and series of explosions has rocked a South Philadelphia refinery complex, the largest on the East Coast, early Friday morning. The blast jolted people from their sleep miles from the scene, but no injuries were reported.The blaze at the Philadelphia Energy Solutions refinery erupted shortly after 4 a.m. Some residents in Philadelphia said the explosions knocked art off their walls. The blasts were felt as far as South Jersey. “We’ve just had an explosion with heavy fire; [the commander] is requesting a third alarm for this location,” a fire official relayed to dispatchers shortly after the largest blast. One resident who lives next to the complex said “I thought it was a meteor or something” after seeing a mushroom-shaped cloud rising from the facility. The fire is contained on the property of the refinery off Passyunk Avenue, fire officials said shortly before 6 a.m. The blaze is still burning. Deputy Fire Commissioner Craig Murphy said a vat of butane had ignited and eventually exploded. A series of smaller explosions happened as the fire worked its way through the tangle of pipes carrying fuel across the complex. Workers were on site when the explosion happened, but were far enough away to avoid serious harm, Murphy said. Large pieces of debris were thrown blocks away and rained down onto streets and traffic lights. A plume of thick, black smoke billowed east from the large complex near Philadelphia International Airport and over portions of South Philadelphia, the Delaware River and into South Jersey. The smoke could be dangerous, said Peter DeCarlo, a Drexel professor and air-quality expert. “Immediate exposure can trigger asthma and other issues,” he said. The refinery is the largest single source of pollution in the Philadelphia area even when there isn’t an emergency. “If it were me, what I would do is leave the area for as much of the day as possible,” DeCarlo said. City emergency management sounded early warning sirens at 5:30 a.m. and issued a shelter-in-place for the area immediately around the complex. Though the area is heavily populated, no evacuation orders were issued. The shelter-in-place was lifted shortly after 7 a.m. Roads in the area of the fire were closed to allow first responders space to work and protect drivers. The Platt Bridge and portions of Interstate 76 were closed temporarily as fire crews worked to contain the blaze. One person said on Twitter that they were on I-95 when the explosion happened. “Could feel the heat right through the car,” the person tweeted.  The fire could be seen for miles. Some neighbors in South Philadelphia said debris rained from the sky into their neighborhoods after the explosions. The complex is the largest refinery on the East Coast and employs about 1,000 people. Many Philadelphians still call it the Sunoco refinery, though it is now owned by Philadelphia Energy Solutions, a partnership that includes Sunoco. The refinery processes 335,000 barrels of crude oil every day at two plants in the complex — Girard Point and Point Breeze. The fire broke out at the Girard Point portion. Natural gas is also processed at the facility. The refinery dates back to the 19th Century, opening a year after the Civil War ended. “The PES Philadelphia Refining Complex has been “part of the neighborhood” in South Philadelphia for over 150 years and is closely tied to the growth of the American oil industry in the 19th century,” PES says on its website. Source:CNN  

Nigerian Genset Market To Record 4.1% Growth

The Nigerian diesel genset market will record a 4.1% growth between 2019 and 2024, according to a new study conducted by research firm Prescient & Strategic Intelligence. Revenue generation within the market is expected to reach $527.4 million during the forecast period. Factors driving the genset market growth include the need to address substantial energy transmission losses, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications. Consumers are increasingly relying on diesel generators to meet their energy needs. Nigeria is facing a huge gap in energy demand and supply due to:
  1. Aging energy transmission and distribution systems unable to efficiently supply the required capacity
  2. Energy demand outrunning local generation
In 2018, energy demand in Nigeria was 40,000MW of which the country was only able to produce between 7,000MW and 8,000MW mark. Based on application, in 2018 the industrial genset sector dominated other segments, namely residential and commercial. In addition, the proposed Economic Recovery and Growth Plan (ERGP) of the Nigerian government is projected to attract huge investments in the manufacturing sector, thereby, encouraging the adoption of diesel gensets for operations and setting up of various industries. The industrial sector generated more than 40% of the market’s total revenue. This can be attributed to the huge demand for comparatively expensive high-power generator sets in the industrial. Source: Esi-Africa.com

Ghana: Electricity Tariff Up By 11.17%

Consumers of electricity in the West African country, Ghana, will be paying higher for electricity from July 2019. This follows 11.17% electricity tariff increment approved by the regulator, Public Utilities Regulatory Commission(PURC). The decision follows extensive consultations with all stakeholders. “In taking the above decision, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC), ” a statement signed by Executive Secretary of PURC and copied to energynewsafrica.com said. PRESS RELEASE APPROVED ELECTRICITY TARIFFS EFFECTIVE JULY 01, 2019 The Public Utilities Regulatory Commission (PURC) has approved an 11.17% tariff increase for recovery of total electricity revenue requirement for the regulated electricity market, effective July 01, 2019. In taking the above decisions, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).  In line with the Commission’s regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers. As a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, the Commission has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers). It is expected that this policy will result in some SLT customers experiencing savings in their overall electricity bills.   This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission. Details of the approved electricity tariffs and the rationale for the decision will be published on the Commission’s website. The Commission also received a tariff proposal from the Ghana Water Company Limited (GWCL) and the decision on this will be announced in due course. The Commission wishes to reiterate its unwavering commitment to ensuring the sustainability and growth of quality electricity and water service provision for socio-economic development. Signed MAMI DUFIE OFORI (MRS) EXECUTIVE SECRETARY