Page 8 - AfrElec Week 46

AfrElec FUELS AfrElec

NLNG set to increase domestic LPG supplies

THE Nigeria LNG (NLNG) consortium is gear- from next year. That is a very positive contribu-
ing up to increase the volume of LPG reserved tion from NLNG.”
for domestic consumption by more than a quar- He also stated that the consortium was tak-
ter next year. ing this step in line with the federal government’s
Tony Attah, NLNG’s managing director, efforts to promote the use of LPG on the domes-
said last week that the group hoped to bring the tic market. Abuja sees LPG as a safer and cleaner
amount of LPG allocated to the domestic market cooking fuel, he commented.
up to 450,000 tonnes in 2021. This year, he noted, Expanding LPG consumption will also ben-
NLNG is slated to deliver about 350,000 tonnes efit the Nigerian economy by creating new jobs
per year (tpy) of LPG to Nigerian consumers, and responding to the challenges posed by the
equivalent to 35% of total domestic supplies. As a coronavirus (COVID-19) pandemic, the NLNG
result, the higher number would represent a rise chief claimed. Additionally, it will put the coun-
of nearly 28.6% on present levels. try in a position to play a key role in the global
Attah, who was speaking at a webinar organ- transition to cleaner fuels, he said.
ised by the Oil and Gas Group of the Nigeri- Attah went on to say that the rise in LPG use
an-British Chamber of Commerce (NBCC), would help Nigeria make the best use of its vast
pointed out that this increase was in line with natural and associated gas resources. He noted
long-term trends. “In 2007, the total consump- that Nigeria’s federal government has already
tion of LPG in Nigeria was about 50,000 tonnes,” dubbed 2020 the “Year of Gas” but urged offi-
he said. “Today, it is about 1mn million [tpy] cials in Abuja to do more, saying that intensive
and NLNG’s contribution is 350,000 [tpy]. We gasification programmes had the potential to
have approached our board to get a mandate to transform the Nigerian economy within the next
increase NLNG’s contribution to 450,000 tonnes 10 years.™

COAL-FIRED GENERATION

Chinese withdraw from Lamu project

CHINA THE Industrial and Commercial Bank of China Kenya Power said in its annual report this
(ICBC) has decided not to finance the proposed week that output at the country’s fossil fuel-fired
1,050-MW Lamu coal plant in Kenya. thermal power plants (TPPs) fell 44% in the year
The ICBC had originally indicated a willing- to June 2019 as generation at the Lake Turkana
ness to provide $1.2bn of the proposed $2bn cost wind power project ramped up.
of the plant. The results also noted that although thermal
The project stirred local and international power generation had shrunk by 44%, the fossil
opposition due to the social and environmental fuel cost in the power system had dropped by
impact on local residents and the World Herit- only 22%.
age-listed Old Lamu Town. This pressure from fossil fuel prices on tariffs
The proposed plant has been in trouble for will only get worse if the proposed Lamu coal-
some time after a June 2019 court ruling over- fired power project is constructed, the Institute
turned the environmental permit for the plant. for Energy Economics and Financial Analysis’
In September, General Electric – which had (IEEFA) Simon Nicholas warned earlier this
been part of the financing and construction con- month.
sortium for the project – announced it would A key rationale for the Lamu project was the
not be involved in new coal projects but did not need to replace expensive diesel-fired power.
specifically rule out further involvement in the However, it is clear that new wind and solar
Lamu project. plants are replacing diesel at a much lower cost,
The African Development Bank (AfDB) has Nicholas argued.
already withdrawn from the $2bn, 1,050-MW Previous IEEFA research has warned that the
Lamu project. Lamu project would lead to higher power tariffs
The co-ordinator of Save Lamu, Khadija for Kenyan consumers.
Shekuwe, welcomed ICBC’s decision but said Lamu also poses a capacity risk, with Kenya
“we want the project not just suspended, but Power recently having raised concerns that too
cancelled entirely.” much new power capacity has been approved,
The news comes as the price of fossil fuels is with almost 2,000 MW of new capacity antici-
rising in Kenya, while thermal output is falling as pated to come online over the next five years
more renewables capacity comes online. despite “lagging demand for electricity”.™

P8 www. NEWSBASE .com Week 46 19•November•2020