Page 15 - DMEA Week 04 2022

DMEA NEWS IN BRIEF DMEA

TotalEnergies) and CNOOC had for a long 60,000 barrels-per-day refinery in Hoima, in 6 million mt in 2022, with China poised to
time preferred a crude oil export pipeline but mid-western Uganda at a cost of US $4.27bn. remain the main buyer, and the volume could
President Yoweri Museveni insisted an oil The government opted for a private-public be higher if the US lifted sanctions imposed
refinery had to be built in Uganda. partnership to develop the refinery meaning by former President Trump on the country’s
However, the government later reached that Uganda’s stake in the consortium will be energy sector since 2018, sources familiar with
a compromise with the oil companies to carried by the government owned Uganda the matter said.
have both the pipeline and the refinery. The National Oil Company (UNOC).AGRC “The export volume is between 450,000-
government moved quickly with its refinery agreed to these terms. 530,000 mt/month, depending on vessel
proposal in August, 2010, by instituting a AGRC is also required to build product availability,” a source told S&P Global Platts
feasibility study. A Swiss-registered firm, storage facilities and construct a 205km Jan. 26.
Forster Wheeler, concluded in its report to product pipeline from Hoima to Mpigi to “The production is increasing, but the
the government that building a refinery in serve Burundi, Rwanda, eastern DR Congo, problem is the limited number of vessels that
Uganda was “economically viable.” northern Tanzania and western Kenya.There are calling at Iranian ports. China is the main
That study gave the government the is also a plan to have a product pipeline going and biggest importer of Iranian LPG and
impetus to invite potential investors to bid northwards to link with South Sudan. For now without any change in 2022.”
and build the refinery near the shores of it remains to be seen if the AGRC will marshal Exports in December 2021 totalled 531,000
Lake Albert. But the government’s plans have the required financial resources and build the mt, compared with 539,500 mt in November
repeatedly suffered as selected companies have refinery in record time. and 363,500 in October, another source
tended to pull out at the last hour. Uganda, which owns 40% stake in the familiar with the matter said, adding that the
In December 2013, the government refinery, invited EAC states to co-own it. shipments comprised a mix of propane and
shortlisted several firms to build the refinery, Kenya has committed to take a 2.5% stake in butane.
but the tender was not awarded until 2015. In the Uganda refinery, while Tanzania wants Last year, shipments peaked in September
early 2015, a Russian consortium, RT Global 8%. The other East African countries are yet at around 556,000 mt, Platts reported earlier,
Resources, was selected by the government as to commit on the shares that they will take. citing trade sources.
the “best preferred bidder” while the South TotalEnergies E&P Uganda has also increased LPG exports from Iran since July-August
Korean consortium SK Energy was put on its stake in the refinery from 10% to 11.5%. 2021 were hovering near two-year highs of
standby as the “alternative preferred bidder” So far, the Africa Finance Corporation around 500,000 mt/month, trade sources had
to build the refinery. (AFC) has advanced US$20m for the said.
However, a year later, the Russians pulled construction of Uganda’s crude oil refinery. Other trade sources estimated Iran’s 2022
out of the deal. The government turned to the AFC signed the financing deal on the sidelines LPG exports at around 5.6 million mt, from
alternative bidder, SK Energy, but the South of the Africa Oil Week in South Africa in 5.5 million last year. But analysts said Iran is
Koreans also pulled out on grounds that they 2019. expected to boost exports by 1.9 million mt
could not afford to take a risk of up to 60%, At the time, it was reported that this year.
being the shares given to the lead contractor. other financiers including the Africa The country aims to bring onstream 130
The government went back to the drawing Development Bank (AfDB), Prosper Africa, million cu m/d of additional gas production
board and advertised for a new bidding a US government Initiative that unlocks capacity in 2022. This includes gas from
round. opportunities to do business in Africa the delayed phase 11 of offshore South Pars
In August 2017, the government zeroed- and another US-based firm, Trace and field and emergency onshore operations as
in on the Albertine Graben Refinery Development Agency, would also sink money domestic consumption surpasses production,
Consortium (AGRC) and immediately into the multi-billion-dollar project. Mohsen Khojastehmehr, managing director
embarked on negotiating the refinery project INDEPENDENT of National Iranian Oil Co. was quoted by the
framework agreement. students news agency ISNA in December.
The consortium led by US manufacturing S&P GLOBAL PLATTS
giants, General Electric, comprises YAATRA FUELS
Africa (Mauritius), LionWorks Group Ltd Nigeria: don’t panic buy…
(Mauritius), Nuovo Pignone International Iran’s 2022 LPG exports
SRL (a General Electric subsidiary domiciled we have enough petrol
in Italy) and SAIPEM SpA (Italy). seen around 6mn tonnes
In April 2018, the government and the The Nigerian National Petroleum Company
AGRC reached an agreement to construct a Iran’s LPG exports are projected at around Limited (NNPC) says it has sufficient stock of

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