The Minister of Power, Works and Housing, Mr. Babatunde Fashola has stated that the country is losing about 2,000 megawatts of electricity to the attack on the Forcados subsea pipeline by Niger Delta militants.
Fashola has also decried what he described as the furore about which part of the country gets the lion share of projects, stressing that every road, every bridge, every streetlight, every pipeline is a shared national asset that belongs to each and every single Nigerian.
The Minister told energy reporters at a recent conference they organised in Lagos that not long after the attack on Forcados pipeline, power generation dropped to about 2,000MW from 5,074MW.
Fashola, who was represented by the acting Managing Director of Niger Delta Power Holding Company, Mr. Chiedu Ugbo, however argued that even at the 5,074 in February, the country was still short of where it ought to be as a nation.
“In the short period between when we started work in November 2015 and February of this year, our generating capacity rose to 5,074 MW, the highest we have ever generated as a nation,” he said.
The minister stated that in the 63 years of government monopoly between 1950 and 2013, the country’s maximum generation was 4000MW.
He said the solution was that the needed more power, adding that it is the basis of the first phase of his road map – Incremental Power.
Fashola argued that it is not gas alone that will allow the country to achieve incremental power, stressing that gas is only one solution amongst many other underutilised solutions.
According to him, the 3000MW-capacity Mambila Power Station, for example, is likely to be the government’s most defining in the road to incremental power.
He noted that one of the things that struck him during the budget process was the furore about which part of the country got “the lion share” or how many roads were being built in the North or how many bridges were in the South.
Fashola insisted that those conversations were unworthy of the country’s collective national responsibility.
“Let us be very clear; every road, every bridge, every streetlight, every pipeline is a shared national asset. They belong to each and every single one of us. If a Kano-Maiduguri road is riddled with potholes and adds hours to your journey time, will this not affect commuters who use it irrespective of where they come from? If the Lagos-Ibadan road is not pliable does it not affect the ability of consumers to receive petrol from the Atlas Cove, the Tank farms and other storage points in Lagos that supply other parts of the country? When a pipeline is vandalised in Sapele, those in Ajaokuta, those in Geregu and beyond will feel the impact,” Fashola explained.
Unlocking Investments into Africa’s Renewable Energy Market
The African Energy Guarantee Facility (AEGF) is launching a virtual roadshow of free webinars allowing a deeper understanding of risk issues for renewable energy projects on the continent, and conversations around risk mitigation solutions. The first webinar will take place on Thursday, 23 September from 14:30-16:00 hrs. EAT.
The session will be oriented on how to get more energy projects from the drawing board to the grid. While the energy demand in African economies is expected to nearly double by 2040, and although the potential for renewable energy is 1,000 times larger than the demand, only 2GW out of almost 180GW of this new renewable power were added on the African continent.
Clearly not good enough! To improve the situation within the next two decades, new solutions need to be implemented urgently. De-risking and promoting private sector investments will play a crucial part of it.
In this 90-min interactive session, AEGF partners: the European Investment Bank (EIB), KfW Development Bank, Munich Re and the African Trade Insurance Agency (ATI) will share their experience and provide valuable insights on how they were able to come together and design practical solutions for investors and financiers of green energy projects in Africa aligned with SDG7 objectives.
Across Africa, the complexity of renewable energy projects and their long tenors hold back crucial energy investment. Tailored to the specific needs and risk profiles of sustainable energy projects, AEGF will tackle the investment challenge by providing underwriting expertise and capacity tailored to market needs.
The AEGF will significantly boost private investment in sustainable energy projects, both expanding access to clean energy and contribute to achieving UN Sustainable Development Goals. The scheme supports new private sector investment in eligible renewable energy, energy efficiency and energy access projects in sub-Saharan Africa.
Shell Signs Agreement To Sell Permian Interest For $9.5B to ConocoPhillips
Shell Enterprises LLC, a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Permian business to ConocoPhillips, a leading shales developer in the basin, for $9.5 billion in cash. The transaction will transfer all of Shell’s interest in the Permian to ConocoPhillips, subject to regulatory approvals.
“After reviewing multiple strategies and portfolio options for our Permian assets, this transaction with ConocoPhillips emerged as a very compelling value proposition,” said Wael Sawan, Upstream Director. “This decision once again reflects our focus on value over volumes as well as disciplined stewardship of capital. This transaction, made possible by the Permian team’s outstanding operational performance, provides excellent value to our shareholders through accelerating cash delivery and additional distributions.”
Shell’s Upstream business plays a critical role in the Powering Progress strategy through a more focused, competitive and resilient portfolio that provides the energy the world needs today whilst funding shareholder distributions as well as the energy transition.
The cash proceeds from this transaction will be used to fund $7 billion in additional shareholder distributions after closing, with the remainder used for further strengthening of the balance sheet. These distributions will be in addition to our shareholder distributions in the range of 20-30 percent of cash flow from operations. The effective date of the transaction is July 1, 2021 with closing expected in Q4 2021.
Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.
Oil Gains 1 Percent on Possible Tight Supply
Oil prices rose on Tuesday as analysts pointed to signs of U.S. supply tightness, ending days of losses as global markets remain haunted by the potential impact on China’s economy of a crisis at heavily indebted property group China Evergrande.
Brent crude gained 95 cents or 1.3% to $74.87 a barrel by 0645 GMT, having fallen by almost 2% on Monday. The contract for West Texas Intermediate (WTI) , which expires later on Tuesday, was up 91 cents or 1.3% at $71.20 after dropping 2.3% in the previous session.
Global utilities are switching to fuel oil due to rising gas and coal prices, and lingering outages from the Gulf of Mexico after Hurricane Ada that imply less supply is available, ANZ analysts said.
“While slowing Chinese economic growth and uncertainty around the (U.S.) Fed’s tapering timetable weighed on market sentiment, other developments still point to higher oil prices,” ANZ Research said in a note.
Still, investors across financial assets have been rocked by the fallout from heavily indebted Evergrande (3333.HK) and the threat of a wider market shakeout in the longer term.
“Evergrande’s woes are threatening the outlook for the world’s second-largest economy and making some investors question China’s growth outlook and whether it is safe to invest there,” said Edward Moya, senior market analyst at OANDA.
While that view of the state of China’s economy is weighing on markets, the U.S. Federal Reserve is also expected to start tightening monetary policy – likely to make investors warier of riskier assets such as oil.
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