Page 10 - DMEA Week 46 2021
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DMEA                                    SUPPLY & PROCESSING                                            DMEA


       Zimbabwe to import electricity




       to ease load shedding




        AFRICA           ZIMBABWE’S power utility Zesa Holdings  generation stood at just 1.5%.
                         plans to import up to 400MW of electricity from   “This is the lowest [percentage] I have ever
                         Mozambique and Zambia to help end load shed-  come across anywhere in the world,” Gata told
                         ding and outages often exceeding 12 hours, The  The Chronicle. “We are importing because the
                         Chronicle reported on November 15.   government has been sitting on an implementa-
                           Demand for power in Zimbabwe peaks at  tion agreement for IPPs for over two years now.”
                         about 2200 MW during winter peak of which   The Zesa executive chairman said licensed
                         the country produces 1400MW due to limited  IPPs in Zimbabwe had potential to generate
                         installed capacity and aging, unreliable facilities.  6000MW of which 600MW could easily be
                           Zesa executive chairman Sydney Gata said in  actualised.
                         an interview that the need to bridge the power   Zimbabwe’s main power generation facilities
                         gap with imports stems in part from the Min-  are the 1050MW Kariba South hydro-electricity
                         istry of Finance having failed to sign an inde-  plant, hamstringed by drought, and the coal-
                         pendent power producer (IPP) implementation  fired 900MW Hwange Power Station, which has
                         agreement.                           outlived its design lifespan.
                           Gata said 20%-35% of electricity imported   The $1.5bn Hwange 7 and 8 expansion pro-
                         from Mozambique and Zambia came from IPPs  ject should add 600MW to the national grid
                         while in Zimbabwe the sector’s contribution to  when realised next year.™
                                                       REFINING

       OPAC Refineries signs




       kerosene offtake deal





        AFRICA           THE Independent Petroleum Marketers Asso-  development and scheduled to come into oper-
                         ciation of Nigeria (IPMAN) this week signed a  ation by the end of 2022, joining the 5,000 bpd
                         kerosene offtake deal with the modular 10,000  developed by Waltersmith Refining & Pet-
                         barrel per day (bpd) OPAC Refineries facility at  rochemical Co. at Ibigwe. With the Nigeria
                         Umuseti in Delta.                    National Petroleum Corp.’s (NNPC) refineries
                           The deal will see OPAC supply fuel oil to  at Port Harcourt, Kaduna and Warri all offline
                         IMPAN members throughout Nigeria.    for rehabilitation work, Waltersmith is currently
                           The group’s President Elder Chinedu Oko-  the country’s only active refinery.
                         ronkwo said that the supply deal was agreed   In April, the Department of Petroleum
                         in order to help bridge supply gaps which have  Resources (DPR) – recently replaced by the new
                         been compounded by a significant rise in the  Nigerian Midstream and Downstream Petro-
                         price of LPG.                        leum Regulatory Authority (NPRA) – published
                           Shortly after the announcement, IPMAN’s  an updated list which showed that 23 refinery
                         public relations officer Yakubu Suleiman moved  project licences were active as of March. If they
                         to assure Nigerians of plentiful supply lasting  were all completed, they would provide an addi-
                         into 2022, urging the public not to panic over  tional refining capacity of 1.09mn bpd.
                         a perceived scarcity. “Do not panic, as there is   In August, Minister of State for Petroleum
                         enough product on [the] ground that can last till  Resources Timipre Sylva said the “programme
                         next year,” he said.                 is on course”.
                           OPAC began pre-commissioning operations   He added: “Modular refineries, we have
                         in September following completion earlier in  licensed quite a bit. I am not in a position to give
                         the year. At that point, chairman Momoh Jimah  you an exact figure now but I know that a few of
                         Oyarekhua said pre-commissioning and com-  these refineries are under construction and very
                         missioning work would continue until the end  soon we will be commissioned,” he said.
                         of November, when commercial operations are   He said that the Waltersmith facility is “func-
                         due to begin.                        tioning well”, noting that he had “also laid the
                           OPAC is one of 16 modular refineries with  foundation stone for Atlantic refinery and there
                         capacities of 20,000 bpd or less that are under  is Niger Delta own that is ongoing”.™



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