Page 14 - AfrOil Week 49 2019

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NEWS IN BRIEF
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Spotlighting the $12bn Dangote Refinery in Nigeria and Ghana’s Tema LNG Terminal, the chamber noted essential role such projects play in revamping the sector and creating opportuni- ties for private sector investors.
“At a time when the low oil price is gripping treasury revenues, private capital is developing key oil and gas infrastructure projects which could have a significant impact on the African energy and power landscape over the next dec- ade,” the report said.
On the Dangote Refinery, the chamber called attention to the current state of Nigeria’s infra- structure and the contribution the project would have specifically as the country works towards tripling its refining capacity to 1.5mn bpd by 2025 as a means to reduce its reliance on fuel imports. It said: “[The] refinery’s tank farms are set out for completion in Q4-19 and they may be used as a depot before the refinery’s production starts. This would provide an immediate increase to fuel storage capacity.”
Ghana’s determination to become sub-Saha- ran Africa’s first LNG importer in 2020 is set to become a reality as the Tema LNG terminal pro- ject nears completion. The project will be able to cover 25% of Ghana’s total electricity generation capacity, with gas providing a cheaper alternative to oil.
“The deal with Rosneft enables Ghana to diversify gas imports away from Nigeria, which has consistently failed to provide the agreed level of supply since the West African Gas Pipeline startedoperating(backinNovember2011),”the Chamber explained. Adding that the emergence of offshore storage and regasification technol- ogy is enabling smaller, lower-risk, rapid LNG
solutions that could be replicated elsewhere in the region in countries with substantial gas reserves.
African Energy Chamber, December 10 2019
POLICY
African Energy Chamber
comments on OPEC-plus
deal, energy poverty
Global oil producers will convene today in Vienna, Austria for the 177th OPEC Meeting. Through the meeting, the producers are aiming to determine the management of oil production in 2020.The African Energy Chamber urges African OPEC and non-OPEC members to commit to the Declaration of Co-operation and ensure compliance. This is of key importance, as it keeps the path to dignity and prosperity for African economies open.
The meeting falls amidst the climate change debate which has put pressure the global energy industry to implement less carbon-intensive energy solutions.
Attending the 177th Meeting, the Africans see this gathering as an opportunity for OPEC members to focus on the realities of energy poverty on the African continent and provide a solution that allows Africa to still meet its objec- tives of improving power access and building competing economies while participating in the dialogue about addressing climate change.
“Climate change is real. At the African
Energy Chamber, we do not reject its existence and impact on the environment, instead, we are determined to express the importance of Africa’s progress not being halted particularly when it is progressing towards its summit,” said NJ Ayuk, Executive Chairman of the African Energy Chamber and author of Amazon best-seller Bil- lions at Play: The Future of African Energy and Doing Deals.
“There must be a dialogue between businesses and governments about the future of the global energy industry, but, African business must be on the table. Accounting for 7.3% of global oil reserves and 7.2% of global gas reserves, Africa should have a voice,” added Ayuk.
Last week, the African Energy Chamber launched a petition against the proposition that in the wake of the climate change debate, Africa should limit the development and exploration of its full hydrocarbon potential. This, it has done not as a means to reject the realities of climate change, but rather as a plea to be given the same opportunity as our western counterparts to develop and industrialise our countries.
In tune with the African Energy Chamber’s plea for a gradual energy transition that does not enforce a swift change from one source to another, Mohammad Sanusi Barkindo, Sec- retary General of OPEC, said earlier this year: “The oil industry must be part of the solution to the climate change challenge. The scale of the challenge means that no single energy source is a panacea; nor can the contribution of an entire industry or group of countries be overlooked. This is not a race to renewables alone; it’s a race to lower greenhouse gas emissions.”
African Energy Chamber, December 05 2019
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Week 48 11•December•2019