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DMEA NEWS IN BRIEF DMEA

Egypt to extend gas grid to and one of the largest LNG projects in the strike to one of our correspondents.
The communique said, “The Lagos
world. It will play a key role in Mozambique’s
East Port Said Industrial economic growth and support the wider State Government met today with the
region.
representatives of NUPENG, which agreed to
Zone partially finance the project development call off its strike immediately.
The $400mn financing will be used to
“Other decisions taken at the meeting are
The Suez Canal Economic Zone (SCZone) activities required to extract natural gas security – the state government will meet
and Sinai Gas signed, on August 11, a offshore, its transfer to onshore processing the heads of all security agencies and secure
contract to extend the natural gas delivery facilities and then its conversion to LNG for their commitment to ensure the free passage
project to the East Port Said Industrial export to various markets around the world. of petroleum products vehicles given their
Zone. The Mozambique Area 1 LNG project is importance to the economy.
Under the contract, Sinai Gas will carry an integrated LNG development that will “Area boys’ – the menace of ‘area boys’ will
out the project, which will implement the initially comprise two LNG liquefaction be handled by relevant government agencies
main terrestrial natural gas networks in trains – each capable of processing 6.44mn and a dedicated phone number will be
the region, at a total length of 35km. The tonnes per year. The initial development established, within the next week to ensure the
project’s central line will feed into natural is expected to produce more than sixteen petroleum products transporters have prompt
gas pressure reduction station at a capacity trillion cubic feet of gas and ninety-three access to security agencies.”
of 80,000 cbm/gas per hour. million barrels of condensate over the 30- According to the communique, the Lagos
Egypt’s Minister of Petroleum and year development and production period. State government will immediately set up a
Mineral Resources Tarek El Molla said that A key focus is for the project to be standing committee to relate with the union
the natural gas delivery project comes as developed in an environmentally and socially on an ongoing basis to address any issue as
part of his ministry’s contribution to the sustainable manner and that it operates they arise.
state’s development of the Sinai Peninsula. responsibly, protecting the environment, as NUPENG had on August 7 directed tanker
El Molla added that, in this context, well as the health and safety of the public, drivers to begin the withdrawal of their
the project has an important national employees and contractors. Investment services from Lagos from 12:00 midnight on
dimension, requiring concerted efforts into the region will create jobs, increase the Monday.
and full coordination between the standard of living and is expected to drive The union said the move followed the
petroleum sector and the SCZone. long-term sustainable economic growth for failure of various authorities in the state to
This will encourage the project’s rapid the country and the region. address three major issues that had severely
implementation. The $400mn commitment to the project caused petroleum tanker drivers pains and
SCZone Chairperson Yehia Zaki said that is in line with Afreximbank’s strategy of harrowing experiences in the state for several
the SCZone Utilities company is responsible promoting intra-African trade as well as months.
for receiving and maintaining work as the industrialization and export development.
consultant for the project. He added that he The guarantee is done jointly with Export
has every confidence in the zone’s keenness Credit Insurance Corporation of South Six-day fuel queues as Port
in supporting investment and overcoming Africa SOC Limited (ECIC) which has
obstacles that it may face. enabled significant African contribution Sudan runs on empty
Zaki noted that work on developing to the overall financing of the Project. This
Egypt’s natural gas system is planned to joint collaboration is offered under the Owners of minibuses in Port Sudan now
begin immediately, which will contribute South Africa-Africa Trade and Investment endure queues of up to six days at filling
to achieving safe and viable economic Promotion Programme (SATIPP), launched stations, as the chronic fuel shortage in the
operation. in 2018, to promote and expand trade and city deepens, Dabanga radio reported on
The move to natural gas is also set investments between South Africa and the August 6.
to provide competitive elements in the rest of Africa. The head of the Minibus Drivers Union,
region, whilst expanding its use in local Mohamed Obashar, told Radio Dabanga that
consumption as a clean and less expensive the Red Sea state Economic Committee as
energy source. This is particularly as an Lagos fuel tanker drivers a failure. He called on the new governor to
alternative to liquid petroleum products. remove the army guards from the pumps and
suspend strike replace them with an anti-smuggling police
team to prevent racketeering at petrol stations.
Afreximbank to support The Nigeria Union of Petroleum and Natural Shangarai, said in a press statement that the
The Governor of Red Sea state, Abdallah
Gas Workers said on Monday that the strike
Mozambique LNG project embarked on by the Petroleum Tanker queues for fuel continued because of the
scarcity of petrol in the state. He referred to
Drivers branch of the union in Lagos had
with $400mn been suspended. the abundance of cooking gas in the state and
The suspension was disclosed in a
the stabile electricity supply.
The African Export-Import Bank joint communique signed by the Lagos Governor Shangarai acknowledged that
(Afreximbank), Africa’s foremost multilateral Commissioner of Energy and Mineral there is a shortage of flour at bakeries in the
trade finance institution, is supporting Resources, Olalere Odusote, and the capital as their quota has been reduced by 30
the advancement of Mozambique’s energy NUPENG Deputy National President, per cent from 6,000 bags to 4,000 bags per
industry and economy by committing up to Solomon Kilanko. day.
$400mn in guarantees and direct lending to The communique was tweeted by Jubril “Most of the water basins in the state will
the Area 1 LNG Project. Gawat, the new media aide to Governor be filled after the rains,” he said, “which will
The total Project is estimated to cost Babajide Sanwo-Olu. contribute to a stable supply of drinking water
about $24bn and is set to be the largest The General Secretary, NUPENG, Olawale to 70% of the residential areas..
private foreign direct investments in Africa, Afolabi, also confirmed the suspension of the

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