Page 15 - AfrOil Week 41

AfrOil POLICY AfrOil

“For oil and gas companies, the route to Paris change.
alignment is much more of a challenge to their TPI also assessed 66 electric utility compa-
basic reason for being. Some companies have nies, finding that 39 (59%) were aligned with the
started grappling with this challenge, but none Paris pledges, while 22 (33%) were aligned with
have met it yet, he said.” the most ambitious ‘below 2°C’ benchmark.
The report also found that seven European The research showed that 94% of energy
companies, five oil and gas and two coal, had companies now have a policy commitment to
managed to bring their future emissions targets act on climate change, but fewer of them have
into line with the Paris Agreement. These are: taken the more advanced management quality
Royal Dutch Shell; Repsol; Total; Eni; Equinor; steps.
Glencore and Anglo American. For example, just 9% of companies ensure
No Chinese or US companies were judged to consistency between their climate change pol-
be in line with Paris commitments. icies and the positions taken by lobbying groups
Matthews said there is yet to be “meaningful of which they are a member.
action” from US companies to reduce carbon The report measured companies on their
emissions. “carbon performance,” and considered such
The report highlighted that that the 2015 factors as the carbon intensity of their products
Paris Pledges would only reduce emissions and their reduction targets. A number of large
to 3.2°C warming, according to the UN Envi- energy firms have pledged to reach net zero
ronment Programme, and are widely regarded emissions, meaning they would be removing
as insufficient to prevent dangerous climate as many emissions as they produce, by 2050. ™

PROJECTS & COMPANIES
KIPP operator signs gas supply deal

GHANA GHANA National Petroleum Corp. (GNPC) country’s capital accounts and have also caused
has agreed to supply natural gas to Cenpower the government to rack up penalties in line
Generation Co. Ltd (CGC), the operator of the with take-or-pay clauses, it said. Now, though,
Kpone Independent Power Plant (KIPP). state-owned GNPC will be able to use gas from
Cenpower confirmed the deal in a statement domestic fields to cover most of KIPP’s needs.
last week, saying that it had arranged to buy This could save the government up to $3bn
the gas during negotiations with the Ghanaian over the remainder of its 20-year power pur-
government. The company explained that this chase agreement (PPA) with Cenpower. In turn,
gas supply agreement (GSA) provided for KIPP, these savings will help Accra pay down the addi-
which is capable of using multiple types of fuel, tional debts it has accumulated under the take-
to switch light crude oil for gas as its main feed- or-pay clauses of its PPAs with KIPP and other
stock. It also stated that gas deliveries were set to independent power producers (IPPs).
begin within just a few days. Meanwhile, the deal will also help Ghana
The company did not reveal the financial meet its environmental goals by facilitating the
terms of the GSA or say how much gas GNPC shift from petroleum products to cleaner-burn-
would deliver to its 340-MW plant near Accra. ing gas. Additionally, it will enable the country
It did say, though, that the deal would result in to expand the use of its domestic gas reserves.
substantial savings for the government. Finance Minister Ken Ofori-Atta hailed the
In its statement, the company noted that GSA, saying: “We welcome Cenpower’s com-
Accra has been importing fuel for KIPP under mitment to Ghana and recognise Cenpower’s
agreements with foreign suppliers. These conversion to gas as a significant step in helping
arrangements have been detrimental to the regenerate Ghana’s energy sector.” ™

Trinity in talks on $500mn refinery

SOUTH SUDAN SOUTH Sudanese fuel supplier Trinity Energy manager, while preparation work will be funded
has entered into talks with financiers and con- by the African Export-Import Bank, Mdeza told
tractors to build a $500mn oil refinery at Paloich, reporters on October 6.
according to the company’s CEO Robert Mdeza. Neither entity has confirmed their involve-
US firm Chemex will serve as the project’s ment in the project.

Week 41 14•October•2020 www. NEWSBASE .com P15