Page 16 - AsianOil Week 22

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to concentrate on finalising a binding tax agree- government is eager to see domestic resources
ment with Ugandan authorities. used to meet this demand, rather than imports.
In other news, Algeria’s national oil company The Lebanese Army has its work cut out trying
(NOC) Sonatrach has become the majority to clamp down on the smuggling of subsidised
shareholder in the Medgaz pipeline via a trans- fuel across the border into Syria. The problem,
action that allowed it to acquire 8.0% of equity which has exacerbated Lebanon’s economic cri-
from Spain’s CEPSA. Ownership of the pipeline sis, shows no sign of abating despite the govern-
is now divided between Sonatrach, with 51%, ment’s claims of progress.
and Naturgy (Spain), with 49%. The parties hope Nigeria needs to do more to encourage the
to expand the system’s capacity by nearly a quar- construction of modular oil refineries, a devel-
ter to 10.2 bcm per year in 2021. oper of one such plant has said. These small-
Meanwhile, Nigerian National Petroleum sized refineries will help Nigeria overcome its
Corp. (NNPC) is talking about bringing its pro- reliance on fuel imports, which has grown since
duction costs down to $10 per barrel on average the shutdown of its outdated, loss-making state
by 2021. Mele Kyari, NNPC’s group managing plants.
director, noted that costs were running as high
as $35.97 per barrel at some fields. If you’d like to read more about the key events shaping
the downstream sector of Africa and the Middle East,
If you’d like to read more about the key events shaping then please click here for NewsBase’s DMEA Monitor.
Africa’s oil and gas sector then please click here for
NewsBase’s AfrOil Monitor. European gas demand still weak
European gas demand remains subdued, despite
South African fuel rationing the slow easing of COVID-19 lockdowns. Rus-
Many markets are reeling in excess fuel supply sian gas flows via the Yamal-Europe pipeline that
as a result of COVID-19 travel restrictions. But runs through Belarus and Poland to Germany
South Africa has had to ration diesel following slumped to zero last week, with the continent’s
a fast recovery in demand as the country’s lock- gas storage levels at an unprecedented high for
down is eased. this time of year.
Only two of South Africa’s six refineries are Russia’s Gazprom, by far Europe’s biggest gas
operating normally, with most refining capacity supplier, has also cut shipments via other routes
having been shut down in response to a collapse including Ukraine. But its ship-or-pay transit
in demand. Opposition politicians blame the with Kyiv means it will pay to pump 65bn cubic
government for failing to ensure a sufficient metres (bcm) of gas through Ukraine’s pipelines
stockpile of fuel. regardless of whether it actually sends that much.
Meanwhile, Egypt has unveiled a new strat- Norwegian gas supplies to Europe were below
egy that aims to realise $19bn in new petro- the five-year average last month but are now at
chemical projects by 2035. The country is set normal seasonal levels.
for a rapid growth in demand for petrochemical Meanwhile, US lawmakers are seeking to
products as its population boom continues. The impose additional sanctions on Gazprom’s

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