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AfrElec TARIFFS AfrElec

area, NERC stated. According to the Commission, Buhari has
“Even under the above conditions, there will also approved a waiver of the import levy on
be no change in tariff for the most vulnerable, as meters, so that those that do not have meters can
tariffs for those consuming 50 kW or less [will] be supplied as early as possible at a reasonable
remain frozen. Customers receiving less than cost.
12 hours of supply will also not experience any Metering problems are common through-
change in tariffs,” the Commission added. out emerging power markets across Africa. The
In addition, NERC noted that President lack of transparency means that Discos cannot
Muhammadu Buhari has directed that there accurately bill their customers, leading to high
should be a nationwide mass metering pro- levels of non-payment, poor service and the use
gramme in an effort to put a stop to estimated of alternative diesel generators.™
and arbitrary billing for electricity.

GAS-FIRED GENERATION

Report: Security threats likely to linger in

Mozambique despite security pact with Total

MOZAMBIQUE THE memorandum signed last week between though, it said.
Total (France) and the government of Mozam- “So far, insurgents have not directly targeted
bique may serve to improve security arrange- Total’s LNG development, and the Mozambican
ments for the Mozambique LNG project without government has already reinforced its military
improving security conditions in surrounding presence around Palma following the recent
areas of the country, according to Stratfor. surge of attacks near Mocimboa da Praia,” Strat-
The US-based intelligence company said last for wrote in a briefing dated August 25. “But
week that Total’s memorandum of understand- without significantly disrupting their activities
ing (MoU) with the Mozambican authorities across the broader Cabo Delgado region, mili-
was likely to reduce the immediate risks stem- tants’ capabilities will likely continue to grow and
ming from the activity of Islamic State-affiliated could eventually present an even greater threat to
groups such as Ahlu Sunnah Wa-Jamo (ASWJ). Total and other oil and gas companies’ onshore
These groups have become a major source of operations.”
concern for the French company following their Total is the operator of the Mozambique LNG
takeover of Mocimboa da Praia, a port in Cabo consortium; its subsidiary Total E&P Mozam-
Delgado that has been serving as the main entry bique Area 1 has a 26.5% stake in the project.
point for shipments of equipment and goods for The remaining equity is divided between two
the Mozambique LNG consortium, on August Japanese companies, Mitsui and Japan Oil, Gas
12. and Metals National Corp. (JOGMEC), with
Since that date, the French major has been 20%; Bharat Petroleum (India), with 15%; Beas
trying to beef up its security regime. It is keen Rovuma Energy Mozambique (a 60:40 joint
to retain its access to Mocimboa da Praia, which venture between ONGC Videsh Ltd (OVL) and
is about 75 km from the site on the Afungi Pen- Oil India Ltd, or OIL), with 10%; Mozambique’s
insula where the group is building an onshore national oil company (NOC) ENH, with 10%;
plant that will process gas from its offshore and PTTEP (Thailand), with 8.5%.
licence, known as Area 1. The partners are building a gas liquefaction
Meanwhile, Mozambique’s government has plant on the Afungi Peninsula. This onshore
also responded to the takeover of the port by facility will process natural gas from Area 1,
expanding its own military footprint at Palma, which lies offshore in the Rovuma Basin. It will
another coastal town about 84 km from Mocim- eventually have two production trains, each with
boa da Praia, Stratfor noted. These measures do a capacity of 6.44mn tpy. The first train is slated
not appear to have affected ASWJ’s capabilities, to come on stream in 2024.™

Week 35 03•September•2020 www. NEWSBASE .com P5