Page 14 - AfrOil Week 27 2022

AfrOil POLICY AfrOil

He also stated that the French major was com- is a level of responsible approach to that, which
mitted to limiting greenhouse gas (GHG) emis- means we focus on value by selecting low-cost
sions in Nigeria but asserted that natural gas was development that is the most efficient in terms of
the most realistic option on this front. “In Nige- greenhouse gas emissions,” he explained.
ria, we believe that we need to push more for Nigeria is part of this development strategy,
gas. We need to stake our focus on gas because he emphasised. “In Nigeria, we are present in the
it is the transition fuel for Nigeria,” he declared. upstream, the midstream and the downstream.
“So we are going to put more emphasis on gas You cannot get away from us and we cannot get
development and we are going to do that in away from you,” he remarked. “What it means
very pragmatic and deliberate ways. To achieve is that we are fully integrated in Nigeria. As I
these objectives, there should be a responsible speak, we produce more than 20% of total oil
approach to possibilities.” in Nigeria. We are the second highest producer
By 2050, Bandele added, TotalEnergies and supplier of gas to the Nigerian population
expects the global energy mix to consist of about and the Nigerian Liquefied Natural Gas Ltd
40% renewables, 40% gas and 20% liquid hydro- [NLNG]. We have more than 530 filling stations
carbons. He stressed, though, that this shift away all across Nigeria and about 30% of them have
from liquids, which currently account for a been installed with solar panels, so they generate
larger share of the global energy mix, would not their energy through solar power.”
discourage the French giant from investing in oil He also drew attention to TotalEnergies’ plan
projects in Nigeria and elsewhere. to invest in the development of the Ikike project
Indeed, he said, TotalEnergies actually hopes in Nigeria, noting that this scheme would raise
to increase oil and gas output levels over the next the country’s oil output by around 50,000 barrels
five years. “The only difference is that now there per day (bpd). ™

South Africa hikes fuel prices

SOUTH AFRICA FUEL prices in South Africa are scheduled to extensive quantities of diesel in their opera-
rise on Wednesday, July 6 when a subsidy in a tions,” reports TechCentral, a local publica-
gasoline levy will be trimmed and a new cost tion. “In Eskom’s case, diesel is used to power
structure takes effect, according to press reports. its open-cycle gas turbines, which helps reduce
According to a Bloomberg report published the impact of load-shedding. Mobile operators
on July 4, the government has announced that make heavy use of diesel to keep their base sta-
the fuel levy reduction that applied from April tions operational during power cuts.”
2022 will be halved on July 6, in advance of its The fuel price hikes, Bloomberg adds, will
total withdrawal on August 3. place further pressure on household finances
From July 6, the retail price of a litre of gaso- and inflation, which breached the top of the
line will range from ZAR26.31 ($1.59) per litre central bank’s target band for the first time in
and ZAR26.74 ($1.61), while the wholesale price five years, after it reached 6.5% in May. Fuel has
of diesel will be between ZAR25.40 ($1.53) and a weighting of almost 5% in South Africa’s con-
ZAR25.53/litre ($1.54). sumer price basket.
“The prices are nearly ZAR10 ($0.60) [per Fuel retail costs have surged by 36% since
litre] more than a year ago and the Department January 2022, increasing calls by opposition
of Minerals and Energy attributes the hikes to Democratic Alliance (DA) party and labour
average international product prices for fuel groups for the government to deregulate the
increasing during the period under review,” said price. The party has proposed a bill which will,
BusinessDay, a local daily on Monday. it says, lower fuel prices if approved.
The fuel price increase, triggered by a value “The primary objective of the bill is to dereg-
chain disruption linked to the Ukraine war, ulate the fuel sector to increase competition in
adds more misery in a country that is already fuel price-setting at both the wholesale and retail
grappling with a wider energy crisis. Eskom, the level, which will result in lower petrol prices for
power utility, has for some years been unable to consumers, as retailers compete to win custom-
supply enough electricity due to frequent break- ers based on price levels,” said DA official Kevin
downs of its old coal-fired generating plants. As Mileham as cited by businesstech on July 4.
a result, it cuts supplies for up to eight hours The Automobile Association of South Africa
daily in some places. said there is a need to interrogate all the compo-
On May 31, 2022 the government announced nents of the fuel price, “to determine whether all
an extension of the temporary reduction levy these components are still necessary in the exist-
on gasoline and diesel until July 5 and thereafter ing formula, and to establish if the current cal-
adjusting the relief by 50% from July 6. culations of these components are correct. The
“The soaring price of diesel is bad news for longer this review is not initiated, the longer the
both Eskom and the mobile operators that use country will wait for lasting solutions.” ™

P14 www. NEWSBASE .com Week 27 06•July•2022