Tullow Initiates Financing Scheme For Local Suppliers
Tullow Ghana Limited has brought together seven banks and over 250 indigenous suppliers in the oil and gas Industry to facilitate and institute easy access to credit financing and other financial sources in order for them to take advantage of business opportunities created by local content legislation in the industry.
The financing process is in response to various feedbacks the company has received from the local companies who are constrained by the challenges of getting access to credit as well as the cost of capital for undertaking projects in the sector.
This has created the need to assemble a consortium of banks and the companies themselves to discuss the various financing packages the banks are willing to offer the suppliers.
According to Tullow Ghana, it has received many requests from a number of financial institutions willing to offer a variety of financing packages and solutions to local suppliers in the upstream oil and gas industry.
The initiative forms part of Tullow’s shared prosperity philosophy which is based on the principle that a country’s hydrocarbons must be a catalyst for its economic growth and one of the measures to achieve this is to offer opportunities along the supply chain to indigenous enterprises and facilitate easy access to financing for such local players in the oil and gas industry.
This is seen as encouraging to a number of local industry suppliers in the sense that in a capital-intensive industry such as oil and gas, if companies do not have access to credit financing, it becomes difficult for them to participate in the supply chain of the sector.
Director of External Affairs, Social Performance and Local Content of Tullow Ghana, Madam Cynthia Lumor told the Goldstreet Business last week that the initiative forms part of the initial stage of the credit financing process and thus indigenous companies in the sector should look forward to more banks participating in the next engagement.
“Supply capacity building is a big part of local content. When the businesses of suppliers grow, jobs are created which result in more revenue for Government in terms of taxes”, she noted.
The banks that are participating in the initiative are Fidelity Bank, GCB Bank, CAL Bank, Standard Chartered Bank, Barclays Bank, Stanbic Bank and SG Bank.
To qualify to have access to financing, companies must have good balance sheets.
Source : goldstreetbusiness.com
OIL: Adopt New Model Contract -That Pays Oil Companies Per Barrel Of Oil Recovered –IEA
A Public Policy Institute in the West African nation, Ghana, Institute of Economic Affairs (IEA) is advocating for a new model contract which pays oil companies for each barrel of crude oil recovered from the ground or seabed.
According to the independent body, this model will provide huge foreign reserves for Ghana’s development.
Some countries using the model
Several countries, including Iran, Iraq, Bahrain, Saudi Arabia and Qatar, are using this framework.
How the model made Norway rich
Norway, in particular, has accumulated more than $1.06 trillion in their Sovereign Funds, using this framework to create prosperity for their people.
IEA made the call in an article – titled ‘Why is Ghana so poor yet rich underneath the soil?’ – published in Legislative Alert, a bi-monthly publication of the IEA.
2010: Iraq paid Exxon $1.90 per barrel to recover oil. In 2010, Iraq paid Exxon Mobil and Shell $1.90 per barrel to recover oil from the ground. 2019: Iraq pays BP, CNPC $2 per barrel to recover oil
On April 30, 2019, the British Petroleum Company (BP) and China’s CNPC accepted $2 to recover a barrel of oil for the Government of Iraq while Exxon Mobil’s bid of $4.8 per barrel was rejected.
$10 per barrel to recover oil – Prof Collier
IEA recalled that at a recent lecture, Professor Paul Collier, the former Director of Research at the World Bank who doubled as former Senior Advisor to Prime Minister Tony Blair on the Africa Commission, and the current Director of the Center for the Study of African Economies at Oxford University, stated that the total cost of recovering a barrel of oil from the ground is about $10. This includes exploration and other costs.
Prof Collier argued that the only way poor African countries can turn their oil reserves into prosperity and to develop into first-class countries is by collecting the super profits called rents.
How oil companies are fleecing poor countries
This means that at current prices of $65 per barrel, $10 cost per barrel of crude oil recovered from the ground or seabed will lead to savings of $55 per barrel for Ghana.
Prof Collier said countries would then invest the rents into the future of their countries instead of allowing “foreign investors” to keep it.
The IEA noted that other poor African countries will learn from President Akufo-Addo if he boldly accepts the new deal, as well as benefit from his example and leadership. “This will be a mighty legacy, second to none! Africans are counting on you, Sir,” it said.
450 million – 550 million barrels oil discovery
On February 14, 2019, the Ministry of Finance announced what is described as the biggest oil find in Africa, 450 million – 550 million barrels, with potential reserves of nearly 1 billion barrels of oil.
Praise for Akufo-Addo’s disgust for colonialism
“Fortuitously, this new “find” has occurred when Ghana has a President who has shown total disgust for colonialism and its underlying philosophy of extracting Ghana’s natural resources under insidious and oppressive contracts with a few crumbs left to the people of Ghana (the colony).
“At a recent meeting with the President of France, Emmanuel Macron, President Akufo-Addo indicated that this business of giving aid to Ghana while extracting its natural resources should stop.”
‘Ghana beyond Aid’ agenda linked to natural resources, “He stressed the urgent need for Ghana to ‘go beyond aid’ in its efforts to develop the economy,” it said.
Rent-seeking contracts
According to the IEA, the old colonial principle of “providing foreign aid while extracting our natural resources” with “rent-seeking contracts” is never going to develop Ghana.
It cautioned that the past 50 years has seen enough of these different “schemes” by some colonial companies masquerading as “foreign investors”.
“They cannily exploit our creaky and incoherent set of rules to enrich themselves while the Ghanaian remains poor in the midst of plenty,” it stated.
New thinking
The independent public policy institute said the time has come for a new thinking, a new paradigm describing the new oil discovery provides as a “God sent” opportunity for President Akufo-Addo to change Ghana’s course of development for good.
“Recent studies have shown that with courage and wisdom, the new oil find can be used to create prosperity for Ghana, like Norway, a former fishing village, or Dubai, a former desert village occupied by nomadic cattle herders,” it added.
The independent public policy institute advised President Akufo-Addo that for Ghana to use its natural resources to develop all of its people, not some, he should take a cue from these world-class models.
The IEA wants a stop to the writing of colonial contracts with odious obligations which enrich only a few and leave the bulk of the people poor. It described the current insidious contracts with these so-called “foreign investors” as spurious at best and only help the signatories and their friends, not the poor.
“These insidious contracts remain the bedrock or the cornerstone of the Ghanaian economy, which you once referred to as the ‘Guggisberg Economy’, and need to be reformed. “Mr President, here is your opportunity to dismantle one of the critical elements of the ‘Guggisberg Economy’ in order to create a new beginning for Ghana to rise! This is your moment, Sir,” it added.
Source: The Finder
Why Is Ghana So Poor Yet Rich Underneath The Soil?
Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana
On the 14th of February, 2019, the Ministry of Finance announced what is described as the biggest oil find in Africa, 450 million – 550 million barrels, with potential reserves of nearly 1 billion barrels of oil. Fortuitously, this new “find” has occurred when Ghana has a President who has shown total disgust for colonialism and its underlying philosophy of extracting Ghana’s natural resources under insidious and oppressive contracts with a few crumbs left to the people of Ghana (the colony).
At a recent meeting with the President of France, Emmanuel Macron, President Akufo-Addo indicated that this business of giving aid to Ghana while extracting its Natural Resources should stop. He stressed the urgent need for Ghana to “go beyond aid” in its efforts to develop the economy. The old colonial principle of “providing foreign aid while extracting our natural resources” with “rent-seeking contracts” is never going to develop Ghana. The past 50 years has seen enough of these different “schemes” by some colonial companies masquerading as “foreign investors”. They cannily exploit our creaky and incoherent set of rules to enrich themselves while the Ghanaian remains poor in the midst of plenty. But now, the time has come for a new thinking, a new paradigm.
This new oil discovery provides our President with a “God sent” opportunity to change Ghana’s course of development for good. Recent studies have shown that with courage and wisdom, the new oil find can be used to create prosperity for Ghana, like Norway, a former fishing village or Dubai, a former desert village occupied by nomadic cattle herders.
At a recent lecture, Professor Paul Collier, the former Director of Research at the World Bank, former Senior Advisor to Prime Minister Tony Blair on the Africa Commission, and the current Director of the Center for the Study of African Economies at Oxford University; stated that the total cost of recovering a barrel of oil from the ground is about $10 (ten dollars per barrel). This includes exploration and other costs.
.
Prof. Collier argues that the only way poor African countries can turn their oil reserves into prosperity and to develop first class countries is by:
•collecting the super profits called rents ( $65-$10 = $55 per barrel);
•investing the rents into the future of their countries instead of allowing “foreign
investors” to keep it.
Several countries like Iran, Iraq, Bahrain, Saudi Arabia are using this framework. However, Norway in particular, has accumulated more than $1.06 trillion (about one trillion US dollars) in their Sovereign Funds using this framework to create prosperity for their people. In 2010, Iraq paid Exxon and Shell $1.90 per barrel to recover oil from the ground. On 30th April, 2019, the British Petroleum Company (BP) and China’s CNPC accepted $2 to recover a barrel of oil for the government of Iraq while Exxon Mobil’s bid of $4.8 per barrel was rejected.
Mr. President, for Ghana to use its natural resources to develop all of its people, not some, please take a cue from these world class models. We must stop writing colonial contracts with odious obligations which enrich only a few and leave the bulk of our people poor. The current insidious contracts with these so-called “foreign investors” are spurious at best and only help the signatories and their friends not the poor. These insidious contracts remain the bedrock or the cornerstone of the Ghanaian economy, which you once referred to as the “Guggisberg Economy”, and need to be reformed.
Mr. President, here is your opportunity to dismantle one of the critical elements of the “Guggisberg Economy” in order to create a new beginning for Ghana to rise! This is your moment Sir.
Ghana requires a new model-contract which pays oil companies per barrel recovered from the ground or seabed. Like Qatar or Dubai, this model will provide huge foreign reserves for Ghana’s development. Other poor African countries will learn and benefit from your example and leadership. This will be a mighty legacy, second to none! Africans are counting on you, Sir.
Source: Institute of Economic Affairs (IEA), Ghana.
Nigeria: Six Oil Companies Licence Revoked
Nigeria’s Department of Petroleum Resources (DPR) has revoked five OMLs and one OPL, according to reports out of the country.
The DPR cited “noncompliance with statutory regulatory obligations” and said it was acting under a “presidential directive on recovery of legacy debts.”
Companies and licenses affected are Pan Ocean Oil Corp., OML 98 in the Niger Delta onshore; Allied Energy Resources Nigeria Ltd., OML 120 in the Niger Delta and OML 121 in the deep offshore; Express Petroleum & Gas Co. Ltd., OML 108 in the Niger Delta continental shelf; Cavendish Petroleum Nigeria Ltd., OML 110 in the Niger Delta continental shelf; and Summit Oil International, OPL 206 in the Anambra Basin.
Greenpeace Activists Stop BP Rig In The North Sea
Greenpeace activists have boarded an offshore drilling rig owned by Transocean and scheduled to start drilling for oil major BP in the UK North Sea in an attempt to hinder the oil company’s plans.
According to a Greenpeace UK’s official Twitter account, two climbers have boarded the rig in an effort to stop BP’s drilling plans offshore Scotland.
The Paul B. Loyd, Jr. is owned by Transocean and is scheduled to start drilling for BP on the UK sector of the North Sea.
Transocean’s latest fleet status report, published in April 2019, shows that the 1990-built rig started its contract with BP in May. The deal is scheduled to end in November 2019 unless BP exercises its options under the contract, which would see the rig working for the oil major well into next year.
The rig’s contract with BP was announced last October and it was initially planned to start in March this year.
Responding to Greenpeace’s protest, BP said in a statement on Monday: “In all operations safety is our top priority. While we recognize the right for peaceful protest, the actions of this group are irresponsible and may put themselves and others unnecessarily at risk.
“We are working with Transocean—the rig’s owner and operator—and the authorities to assess the situation and resolve it peacefully and safely.
“We share the protestors’ concerns about the climate. We support the Paris agreement. And we are working every day to advance the world’s transition to a low carbon future.
“We’re reducing emissions from our own operations – down 1.7 million tonnes last year – improving our products to help our customers reduce their emissions, and creating new low carbon businesses. We are committed to being part of the solution to the climate challenge facing all of us.”
Greenpeace activists have also recently blocked entrances to BP’s headquarters in London as part of its “Climate Emergency” campaign.
The activists set up camp inside specially designed containers, blocking the entrance to the building. They were subsequently removed by police and ten people were arrested as a result.
Source: offshoreenergytoday.com
Responding to Greenpeace’s protest, BP said in a statement on Monday: “In all operations safety is our top priority. While we recognize the right for peaceful protest, the actions of this group are irresponsible and may put themselves and others unnecessarily at risk.
“We are working with Transocean—the rig’s owner and operator—and the authorities to assess the situation and resolve it peacefully and safely.
“We share the protestors’ concerns about the climate. We support the Paris agreement. And we are working every day to advance the world’s transition to a low carbon future.
“We’re reducing emissions from our own operations – down 1.7 million tonnes last year – improving our products to help our customers reduce their emissions, and creating new low carbon businesses. We are committed to being part of the solution to the climate challenge facing all of us.”
Greenpeace activists have also recently blocked entrances to BP’s headquarters in London as part of its “Climate Emergency” campaign.
The activists set up camp inside specially designed containers, blocking the entrance to the building. They were subsequently removed by police and ten people were arrested as a result.
Source: offshoreenergytoday.com Angola: ExxonMobil Redeveloping Offshore Block 15 To Boost Production
US oil giant ExxonMobil has committed to further investing in Block 15 offshore Angola with the aim to boost oil output.
ExxonMobil said the decision made with its partners was part of an agreement with Angola’s recently established National Agency for Petroleum, Gas, and Biofuels.
As part of the agreement, Sonangol, Angola’s state oil company, will receive a 10 percent equity interest. Exxon is the operator of the block with partners being BP, Equinor, ENI, and now Sonangol.
“This renewed collaboration will enable Angola to optimize recovery and add production from mature fields,” said Hunter Farris, senior vice president of ExxonMobil Upstream Oil & Gas Company.
As the operator, ExxonMobil said it would complete a multi-year drilling program in the block and install new infrastructure technology to increase the capacity of existing subsea flow lines. The project will generate about 1,000 local jobs during the execution phase and will produce approximately 40,000 additional barrels of oil per day once online.
Changes to the production sharing agreement extend operations through 2032 and bring Sonangol into the Block 15 partnership with a 10 percent interest.
Under the agreement, Exxon interest will be 36 percent, BP Exploration’s share 24 percent, ENI Angola Exploration’s interest 18 percent and Equinor Angola’s share 12 percent. Exxon did not share how much the redevelopment work on the block would cost.
ExxonMobil has interest in three deepwater blocks covering nearly 2 million gross acres in Angola.
These blocks contain substantial development opportunities and have a gross recoverable resource potential of approximately 10 billion oil-equivalent barrels. Block 15 has produced more than 2.2 billion barrels of oil since 2003.
BP’s website shows the following FPSO units have been installed at Block 15 so far:
- Kizomba A FPSO
- Kizomba B FPSO
- Mondo FPSO
- Saxi-Batuque FPSO
Angola: Substation Project To Electrify 2.5m Homes Commissioned
The Belo Monte substation project which is expected to provide electricity to 300,000 households and benefit more than 2.5 million people has been commissioned.
The handover ceremony of the Belo Monte substation in the electrification and household connection project in Luanda, Angola contracted by a Chinese enterprise was held on Wednesday in Cacuaco, Luanda province.
According to news agency Xinhua net, the electrification and household connection project is located in the provinces of Luanda and Bengo. The project started in October 2016 with a contract period of 34 months and a contract value of some $675 million.
Li Xunfeng, chief representative of Power Construction Corporation of China (PowerChina) in Angola, explained that the Belo Monte substation project in Luanda mainly includes the construction of nine substations and related supporting projects.
The project is expected to be completed in August this year, with all nine substations already in operation.
Speaking at the handover ceremony, Angola’s Minister of Energy and Water, Joao Borges, said that the Luanda province electrification and household connection project is part of the Angolan National Development Plan, which mainly guarantees the national electricity supply in Angola.
Borges highlighted that once the project is in full operation, “it is expected that more than 2.5 million people will benefit. At the same time, the project will create new jobs and promote local social development”.
The Chinese ambassador to Angola, Gong Tao, said that the project is a microcosm of cooperation in the field of financing and infrastructure construction in China and Angola.
Source: Esi-Africa.com
Shell Nigeria Increases Gas Distribution By 150%
Shell Nigeria Gas (SNG), has increased its gas distribution capacity by over 150% following the safe completion of its second gas train, the Agbara-Ota Capacity Increase Project.
SNG’s managing director, Ed Ubong, said: “Apart from increasing the distribution capacity in existing states where it operates, SNG is maturing opportunities to expand its gas distribution network to new states.”
According to Ubong, on completion of SNG’s expansion projects, over 1,000MW equivalent of energy will be directly supplied to various industrial parks and manufacturing companies in Nigeria.
Ubong spoke with journalists at the recent media launch of the 2019 edition of the Shell in Nigeria Briefing Notes, an annual publication detailing the activities of the business interests of the global energy giant in Nigeria covering Shell Nigeria Gas, The Shell Petroleum Development Company, Shell Nigeria Exploration and Production Company, and the Nigeria Liquefied Natural Gas Company.
SNG completed the first phase of its pipeline expansion in Abia State, connecting manufacturing industries in the Osisioma area directly to pipeline gas.
In addition, it will also deliver pipeline gas to the IPP consortium that provides electricity to the popular Ariaria market in Abia State – one of the largest open stall markets in West Africa, with over 37,000 shops.
The 1st Phase of the Ariaria IPP project commissioned by President Muhammadu Buhari in 2019 currently provides electricity to over 4,000 shops.
Ubong said: “Shell as a leading energy company is committed to supporting the Federal government’s aspiration to grow the domestic gas market, making domestic infrastructure investments under the right commercial conditions and continuing to birth domestic gas projects that will be major game-changers in Nigeria’s quest for cleaner energy sufficiency, industrialisation and economic growth.”
He added: “SNG currently supplies natural gas to over 100 industrial and commercial customers, mostly in Ogun, Abia, and Rivers States. This drives industrialisation, providing employment for the skilled and unskilled local population in addition to directly improving internally generated revenues in these states.”
In 2017, SNG entered into an agreement with the Rivers State Government for the distribution of gas to industries in the Greater Port Harcourt area and its environs. In 2018, it explored opportunities to distribute gas to the Lagos State Government as part of the embedded power ‘Lights Up Lagos’ initiative. Efforts are on-going through partnerships to develop opportunities for natural gas distribution to wholesale and retail customers in Victoria Island, Ikoyi, Lekki and Epe areas of Lagos area.
He said: “This year, in collaboration with the Nigerian Content Development & Management Board and the Bayelsa State Government, SNG has signed commercial agreements with customers to supply gas to industrial clusters and parks in Bayelsa State, close to the SPDC JV Gbaran Ubie world-class gas facility. Agreements have also been signed for offtake of the Assa North gas project in Imo State”.
SNG has implemented various social and community development projects covering education, community health, road safety and livelihood in areas of its operations, donating and renovating schools, providing information communications technology centres, equipping science laboratories and launching Road Safety Education and Awareness campaigns
Source: Esi-Africa.com
Rejoinder: LPG Price Witnesses Almost 50% Reduction
Energynewsafrica.com wishes to correct its earlier publication in which it said the all LPG marketers are expected to reduce their product by almost a whopping 50 percent.
In the said the publication, we said the reduction is on litres of the product; however, that is a factual inaccuracy as the reduction is rather on the kilos.
Meanwhile, price of LPG will witness a marginal reduction following reduction in LPG price on the global market.
We humbly regret for misinforming our cherished readers and followers and unreservedly render an unqualified apology to Chief Executive Officer of NPA,Mr Hassan Tampuli for any form of embarrassment the publication may have caused him as well as LPG marketers.
Breaking News: LPG Price Witnesses Almost 50% Reduction
The price of Liquefied Petroleum Gas (LPG) for domestic consumption is expected to witness a reduction of about 50% by tomorrow, Sunday, 9th June, 2019.
Currently, a litre of LPG at the refilling station is sold at GHC5.07kg but it is expected to be sold at GHC2.94 kg.
Checks conducted by energynewsafrica.com revealed that some LPG refilling stations sold the product at the following prices:
2kg——-GHC 10.60
3kg——-GHC 15.90
5kg——-GHC 26.50
10kg——GHC53.00
13.5kg—-GHC71.60
14.5kg—-GHC 77.00
20kg——GHC 106.00
25kg——GHC 135.50
60kg——GHC 318.00
The above prices are expected to go down drastically following a release to all LPG dealers which was sighted by energynewsafrica.com.
Chief Executive Officer of NPA, Hassan Tampuli who confirmed the reduction in LPG prices, attributed it to reduction of LPG price on the international market.
It is not clear yet whether the reduction in the prices of the product will lead to increase in LPG consumption.
Norway: More Than 1500 Offshore Rig Workers Might Go On Strike
More than 1500 offshore workers in Norway might go on a strike if a wage settlement with the Norwegian Shipowners’ Association – representing the companies – is not reached.
Offshore workers’ union Industri Energi – which broke off wage talks last week together with SAFE union, citing a big difference between the asked for and the actually offered pay rise – said that if no agreement is reached during mediation with the National Mediator (Riksmekleren) up to 937 offshore workers would go on a strike across around 20 offshore rigs and platforms, but the final number of workers has yet to be decided on.
According to the union, the majority of the companies and installations that might be affected by the strike are on a contract with Equinor. Also, some work for Aker BP, Var Energi, and Shell. The strike would affect offshore drilling rigs, platforms, FPSOs, and FSOs.
Separately in a statement on Friday, the Norwegian Shipowners’ Associations acknowledged that Industri Energi said 937 workers might go on strike, but it also said it has been informed by another union, SAFE, that its 667 offshore employees across 12 facilities might go on a strike too.
The mediation with both unions takes place on June 27, with the deadline set for midnight, after which a strike might take place unless an agreement is reached.
As reported earlier this week, a possible strike by the Norwegian Organisation of Managers and Executives (Lederne) was averted earlier this week after Lederne struck a pay deal with the Norwegian Oil and Gas Association through a mediation which had gone 4 hours into “overtime.”
Had it happened, the strike would’ve caused the shutdown of Gjøa, Kristin, Draugen, Ivar Aasen, Oseberg East, and Gudrun offshore platforms, also leading to a production halt from associated fields such as Tyrihans, Maria and Vega, too. This would’ve meant a daily production loss of roughly 440 000 barrels of oil equivalent.
Source: offshoreenergytoday.com
Global Gas Demand To Rise 10% In Five Years
The International Energy Agency has noted that global demand for natural gas is set to keep growing over the next five years, driven by strong consumption in fast-growing Asian economies and supported by the continued development of the international gas trade.
Demand for natural gas grew 4.6% in 2018, its fastest annual pace since 2010, according to the IEA’s latest annual market report,Gas 2019.
Gas accounted for almost half the increase in primary energy consumption worldwide. Demand is expected to rise by more than 10% over the next five years, reaching more than 4.3 trillion cubic metres (tcm) in 2024.
“Natural gas helped to reduce air pollution and limit the rise in energy-related CO2 emissions by displacing coal and oil in power generation, heating and industrial uses,” said Dr Fatih Birol, the IEA’s executive director.
“Natural gas can contribute to a cleaner global energy system. But it faces its own challenges, including remaining price competitive in emerging markets and reducing methane emissions along the natural gas supply chain.”
China is expected to account for more than 40% of global gas demand growth to 2024, propelled by the government’s goal of improving air quality by shifting away from coal. Chinese natural gas consumption grew 18% in 2018 but is expected to slow to an average annual rate of 8% to 2024 as a result of slower economic growth.
The IEA also sees strong growth in gas consumption in other Asian countries, particularly in South Asia.
In Bangladesh, India and Pakistan, the industrial sector is the main contributor to growth, especially for fertilisers to meet the needs of growing populations.
Industrial use of natural gas, both as a fuel and a feedstock, is set to expand at an average annual rate of 3% and account for almost half of the rise in global consumption to 2024.
Power generation remains the largest consumer of natural gas, in spite of slower growth due to strong competition from renewables and coal.
Gas 2019 also focuses on the role of liquefied natural gas (LNG) at sea, which is set to emerge as a fast-growing alternative fuel because of stricter rules on sulphur content that take effect in January 2020.
Supplies to meet growing global demand for natural gas will come from both new domestic production in fast-growing economies but also increasingly from major exporting countries, led by the development of abundant shale gas resources in the US.
The strong growth in LNG export capacity will enable international trade to play a growing role in the development of natural gas markets as they move towards greater globalisation. Investment in LNG projects have rebounded in 2018 after several years of decline, and a large number of projects due to take final investment decision in 2019 is likely to further support trade and market expansion.
However, more investment will be needed in the future. The recent convergence in market prices in major regions gives an indication of the increasing globalization of the natural gas trade. Establishing market-driven pricing mechanisms in fast-growing economies remains a challenge, however.
Recent reforms in major markets are sending encouraging signals, but more will be required to ensure the sustainable market-driven development of natural gas in these economies.
Source: Esi-Africa.com
Ghana Gas Launches ‘Gas Challenge’
Dr Ben K D Asante, CEO of Ghana Gas
The Ghana National Gas Company has launched an initiative dubbed, “The Gas Challenge,’ which will be used to help stakeholders and the general public to understand operations in the gas industry in Ghana.
The Chief Executive Officer (CEO) of the company Dr. Ben K. D Asante, explained that the initiative would take the form of questions and answers.
He indicated that it would help deepen the understanding of people in academia, the media and other stakeholders in the gas sector.
In a related development, Ghana Gas has supported the Ellembelle District Assembly with an amount of GHc125 million to enable them to reconstruct the Esiama-Asasetre stretch of the Teleku-Bokazo Road.
The road leads to the birthplace of Ghana’s first president Dr. Osagyefo Kwame Nkrumah.
The road was earlier awarded for reconstruction in 2016 but work halted due to the lack of funds.
As a result, tourists visiting the birthplace of Kwame Nkrumah are subjected to bumpy ride on the only road leading to the historic national monument at Nkroful.
Dr. Asante said the positive response to the request of the DCE was as a result of the company’s commitment to fixing some roads in areas it operates.
He pointed out that Ghana Gas is responsible for roads in the oil enclave.
“We tried to find resources together with our partner GNPC to be able to build infrastructure that will link communities in the Nzema area.”
“Nkroful Road is one of them. It’s about 20 kilometres, and we are providing funding for it,” he added.
District Chief Executive for Ellembelle Mr Kwasi Bonzoh said “the biggest problem has been funding and that is what has left the road in this state.”
“The contractor abandoned site since 2017 for lack of funding so we wrote to Ghana Gas and they graciously accepted to provide the funding.
“The whole project comes to about GHc125 million and it’s a 28-kilometre road, but it is going to be done in three phases.
Ghana: ECG To Venture Into Data And Broadband Services – Boakye Appiah
Ing Samuel Boakye-Appiah, MD of ECG
The Electricity Company of Ghana Limited (ECG) is set to utilize fibre optic backbone to venture into the provision of data and broadband services. It also plans to position itself to become the regulator for the renewable energy sector in Ghana.
Announcing this at a press conference in Accra on Thursday, the Managing Director of ECG, Ing Samuel Boakye-Appiah, said the new venture is part of measures being taken to make ECG a key player in the power sector.
According to him, the company, which currently has 112 staff, is still a growing concern and is operating as a responsible asset owner and bulk energy trader.
He also explained that ECG, among other things, has the obligation to monitor the asset that has been leased to PDS Ghana Limited so that by the end of the lease period, the current value of the asset, which is pegged at GH?13 billion, would not have depreciated, but would rather have appreciated.
He also announced plans to export power to neighbouring countries, hoping that ongoing renegotiation of power deals, as well as increased use of gas for power generation in Ghana, would lower tariffs.
According to Ing Boakye-Appiah, the rollout of these strategies is aimed at making ECG the most innovative electricity company in West Africa by 2025.
The mission, he stated, is to lead the electricity market in innovation and regional integration to support the economic growth and improvement of the lives of the citizens of Ghana and West Africa.
Ing. Boakye-Appiah emphasized that neither ECG’s assets nor its liabilities were transferred to Messrs Power Distribution Service (PDS), adding that the company has not been sold.
He explained that ECG has retained all the network assets and is also liable for debts incurred prior to the transfer of its operations to PDS.
He noted that ECG would sell energy in bulk to PDS, which would in turn pay for the energy consumed and make lease payments to ECG for using ECG’s networks.
According to him, PDS Ghana Ltd, as the distributor, would handle and manage on behalf of ECG, all legacy (outstanding) issues, revenue collection and unpaid bills prior to the transfer date on March 1, 2019.
He added that PDS would collect all outstanding monies customers owe to ECG on its behalf.
Ing. Boakye-Appiah explained that leveraging on its expertise in the energy sector, ECG is turning its training school into a training and consultancy services provider.
“We are exploring other business opportunities in the energy sector.
“We have maintained our headquarters building – Electro Volta House. Our presence will be felt in all the political regions where PDS operates as part of our monitoring role.
“ECG will discharge its obligations under all existing contracts signed prior to the transfer,” he added.
He said ECG has appointed PDS as the agent for completion of all Capital Works in Progress (CWIPs), but ECG would be responsible for payments to contractors/vendors.
The MD explained that ECG’s training centre is one of the strategic assets that were not transferred to PDS.
“Prior to the transfer, the centre had trained more than 4,000 personnel in various critical skills in the power utility sector.
“The centre also trains utility service workers from the military, hospitals, factories, our sister companies – GRIDCO & NEDCO, as well as engineers from the West Africa sub-region, notably Sierra Leone and Liberia.
“As part of its new business focus, ECG will leverage on its 50 years of experience and the huge intellectual capital at its disposal to provide training and consultancy services focusing on the energy sector.
“The ECG’s training school is the strategic competence development centre of the company providing technical and non-technical training to serve ECG, VRA, GRIDCo, NEDCO and other utilities in West African sub-region.
“It has been accredited by the National Board for Professional and Technician Examinations (NABP TEX).
“The training programmes cover technical areas for organisations within the energy sector, mining oil exploration and providing in-service trainings, tailored programmes for organisations, refresher programmes and engineering basics for non-engineers in engineering fields,” he added.
Ing. Boakye-Appiah urged the general public to take advantage to patronise its training centre and enjoy first-class training facilities.
He assured that ECG would continue to play a key role in Ghana’s energy sector as a responsible asset owner safeguarding the value and condition of the distribution network and ensuring PDS’ compliance with the Concession Agreement.
Source: The Finder
Ing. Boakye-Appiah emphasized that neither ECG’s assets nor its liabilities were transferred to Messrs Power Distribution Service (PDS), adding that the company has not been sold.
He explained that ECG has retained all the network assets and is also liable for debts incurred prior to the transfer of its operations to PDS.
He noted that ECG would sell energy in bulk to PDS, which would in turn pay for the energy consumed and make lease payments to ECG for using ECG’s networks.
According to him, PDS Ghana Ltd, as the distributor, would handle and manage on behalf of ECG, all legacy (outstanding) issues, revenue collection and unpaid bills prior to the transfer date on March 1, 2019.
He added that PDS would collect all outstanding monies customers owe to ECG on its behalf.
Ing. Boakye-Appiah explained that leveraging on its expertise in the energy sector, ECG is turning its training school into a training and consultancy services provider.
“We are exploring other business opportunities in the energy sector.
“We have maintained our headquarters building – Electro Volta House. Our presence will be felt in all the political regions where PDS operates as part of our monitoring role.
“ECG will discharge its obligations under all existing contracts signed prior to the transfer,” he added.
He said ECG has appointed PDS as the agent for completion of all Capital Works in Progress (CWIPs), but ECG would be responsible for payments to contractors/vendors.
The MD explained that ECG’s training centre is one of the strategic assets that were not transferred to PDS.
“Prior to the transfer, the centre had trained more than 4,000 personnel in various critical skills in the power utility sector.
“The centre also trains utility service workers from the military, hospitals, factories, our sister companies – GRIDCO & NEDCO, as well as engineers from the West Africa sub-region, notably Sierra Leone and Liberia.
“As part of its new business focus, ECG will leverage on its 50 years of experience and the huge intellectual capital at its disposal to provide training and consultancy services focusing on the energy sector.
“The ECG’s training school is the strategic competence development centre of the company providing technical and non-technical training to serve ECG, VRA, GRIDCo, NEDCO and other utilities in West African sub-region.
“It has been accredited by the National Board for Professional and Technician Examinations (NABP TEX).
“The training programmes cover technical areas for organisations within the energy sector, mining oil exploration and providing in-service trainings, tailored programmes for organisations, refresher programmes and engineering basics for non-engineers in engineering fields,” he added.
Ing. Boakye-Appiah urged the general public to take advantage to patronise its training centre and enjoy first-class training facilities.
He assured that ECG would continue to play a key role in Ghana’s energy sector as a responsible asset owner safeguarding the value and condition of the distribution network and ensuring PDS’ compliance with the Concession Agreement.
Source: The Finder