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Electricity Generation Drops by 740MW

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electricity
  • Electricity Generation Drops by 740MW

Nigeria’s electricity generation has dropped by over 740 Mega Watts (MW) from the 4,202.7MW recorded in September to 3,462.1MW, according to data from the Transmission Company of Nigeria (TCN).

The TCN in its daily generation report on Tuesday, put the lowest electricity generation at 2,992.0MW while its peak output stood at 3,500.10MW.

Despite gas supplyconstraint to power plants, the country has in the last three months enjoyed stable electricity, which was made possible by the hydro power plants.

But gas constraint, the Nigerian Electricity Supply Industry (NESI), said made the country’s power sector to suffer a deficit of about N2.033 billion on October 31 alone.

NESI stated: “On October 31 2016, average power sent out was 3288MWh/hour. The reported gas constraint was 4035MW. The reported line constraint was 20MW and the reported high frequency constraint is 180MW. The water management constraint was 0MW. The power sector lost an estimated N2.033 billion on October 31 2016 due to constraints.”

Speaking on the issue of gas constraints to power plants at the Nigerian Gas Association (NGA) conference in Abuja, President of the association, Bolaji Osunsanya, said Nigeria’s current gas production can deliver 32GW if fully deployed for power.

This notwithstanding, Osunsanya said the country would still be behind India, South Africa and many other developing economies in making sizeable quantities of gas available for domestic electricity consumption.

According to him, gas fuelled generation accounts for only about 2.5GW of current generation.

Due to poor planning, he noted that a further 2GW of generating plants are stranded with no gas supply. “This would seem to underscore the size of the opportunity that exists to fill this obvious gap. Gas supply has been highlighted as the weak link in the development of the power sector. While we would not debate how we got here, we will rise up to the challenge of ensuring that gas is made readily available for the development of the electricity supply industry. It is clear that with a focused development, domestic gas can be harnessed to fuel the entire power demands of the country and beyond,” he added.

Osunsanya said the issues bedevilling the power sector must be addressed at the same time. “The cash collections in the system must be adequate to support any development in the sector including Gas development and supply, Power Generation, Transmission and Distribution. The regulators and other government agencies, such as the Bulk Trader and the Ministries of Finance, Power and Petroleum, must come to a common understanding of the imperatives of the sector so that we begin to solve the problem. A top priority would be the securitisation of investments in the sector and appropriate pricing of the building blocks.”

He said that more investment in the gas sector would help to provide the necessary output for the power sector.

Osunsany hinted that the scale of investment in the gas sector needs new thinking.

Entrusting International Oil Companies (IOCs) or the Federal Government to develop the required gas infrastructure, he noted, worked to an extent in the past, adding that the public and private sector must now work hand-in-hand on future developments.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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