Page 10 - AfrElec Week 26

AfrElec FUELS AfrElec

Botswana seeks to compensate for

slowdown in South African fuel imports

BOTSWANA MESHACK Tshekedi, the CEO of Botswana Oil Mosetlho Kenamile, the company’s COO,
Ltd (BOL), said last week that his company was said at the same press briefing that he did not
taking steps to compensate for a slowdown in expect the slowdown in South African deliveries
petroleum product deliveries from South Africa. to cause shortages in Botswana. The country has
Speaking to reporters in Gaborone, Tshekedi enough fuel in storage to withstand the switch to
stated that Botswana’s government had author- other suppliers, he said.
ised the withdrawal of 8mn litres of fuel from the “Botswana currently has a total volume stock
national reserves in order to ensure domestic capacity of 55mn litres, which would last up to 30
supplies. The state has also given BOL permis- weeks if the situation was dire,” he was quoted as
sion to procure petroleum products from other saying by the Botswana Daily News.
countries, including Mozambique and Namibia, In the meantime, Kenamile added, BOL is
he said. taking steps to ensure domestic supplies. It will
He explained that the government had taken make use of six selected trucking companies that
these steps because the South African companies have agreed to augment fuel delivery networks,
that have traditionally been BOL’s main suppliers he said. Additionally, the company is working to
had reduced exports. These firms are rationing beef up its storage capacity, he stated.
supplies because their capacity to meet domestic For example, he said, BOL intends to accel-
demand has deteriorated, he said. erate the planned expansion of the Francistown
According to Tshekedi, the shift to new sup- depot. It is also drawing up plans for the estab-
pliers in Namibia and Mozambique will raise lishment of a public-private partnership (PPP)
the cost of transporting fuel into Botswana. BOL to build a tank farm in Tshele Hills and is looking
has therefore asked Gaborone to allocate BWP5- into the prospects for setting up another storage
6mn ($430,000-510,000) to subsidise the costs of facility in Ghanzi. He did not reveal the timeline
transportation, he said. or the cost of these projects.™

GAS-FIRED GENERATION

UKEF set to back Mozambique LNG

MOZAMBIQUE THE UK’s export credit agency UK Export at campaign group Oil Change International,
Finance (UKEF) is looking to provide up to told the agency. “The UK should never finance
$800mn in financing for the Total-operated another fossil fuel project if they are serious
Mozambique LNG project, Reuters reported on about being a climate leader.”
June 25 citing sources. Total operates Mozambique LNG with a
The UKEF listed the project as a potential 26.5% stake, while its partners are Japan’s Mitsui
candidate for investment last August, the news E&P (20%), India’s ONGC Videsh Ltd (OVL)
agency said. The agency has declined to com- (10%) and BPRL Ventures Mozambique (10%),
ment on its possible support, citing commercial local investors ENH Rovuma (15%) and Beas
confidentiality. Rovuma Energy Mozambique (10%) and Thai-
Mozambique LNG is set to produce 13mn land’s PTTEP (8.5%). Together they arranged
tonnes per year (tpy) of LNG, using gas from the $15bn in financing for the project’s first phase
Golfinho and Atum fields in the Rovuma Basin. in late May, according to Bloomberg. Around 20
The project, which carries a total cost of $23bn, commercial banks are expected to take part and
is due to start exporting by 2024. are due to sign an agreement before the end of
Total and others have looked to shift their June, paving the way for a final investment deci-
focus from oil to gas, banking on expected strong sion (FID) to be taken.
growth in demand for the latter over the coming Mozambique LNG is one of several LNG
decades. They have also promoted gas as a transi- export ventures under development off the East
tion fuel, as its use results in fewer emissions than African nation’s coast. Another one is Rovuma
oil. But environmentalists are unconvinced, and LNG, led by ExxonMobil, which anticipates
oppose UKEF’s support for Mozambique LNG, reaching an FID next year. That plant will pro-
according to Reuters. duce up to 7.6mn tpy of LNG starting in 2025.
“By backing this massive fossil fuel project, Exxon is also involved in the Eni-led Coral South
the UK would undermine their credibility as project, which is due to enter service in 2022. It
they prepare to host the UN climate negotiations will have a capacity of 3.4mn tpy.™
next year,” Alex Doukas, programme director

P10 www. NEWSBASE .com Week 26 02•July•2020