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Government to Commission More Power Projects This Year

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electricity
  • Government to Commission More Power Projects This Year

The Minister of Power, Works and Housing, Babatunde Fashola has unveiled plans to commission some electricity projects this year.

Fashola, who made this revelation in Lagos during the 11th Monthly Stakeholders meeting, said some of the projects to be commissioned in the course of the year include the completion of the Kaduna 215 megawatt power plant; the Gurara project and the Gardin Kowa plant. Others are switching of the Gudenda substation, as well as the conclusion of the Katsina wind and the Abuja solar farms.

The second phase of the Abuja solar project, he noted would run-up from 800watts to 1.2 megawatt and possibility of partnerships in the area of development of hydro dams.

He also disclosed that there are 14 projects for transmission in Lagos State and Ikeja West, which is the largest in terms of transformer capacity, is currently undergoing expansion to respond to the growing needs of population. “This tells you clearly that the transmission system is not static, it is dynamic and expanding.”

According to him, the evacuation of power at the Ikot Ekpene switching station is what has kept the grid to almost 4,000 megawatts. “We still have 3,000 megawatt out from the damage of the excado and vocado, so if that comes back, we are almost at 7,000 megawatts, so the target is incremental power.”

Fashola, who acknowledged the challenges operators are facing, expressed worries over consumer service as the focus of the power sector, saying “it remains the top burner issue because our staff must understand that without the customers, they do not have jobs and if they lack the skill and patients to serve, then they should leave.”

“Various distribution areas should improve the quality of service and recognize the customer as king, if we cannot solve the problem, we owe them some explanation. The issues around metering and billing should be addressed with trust,” he added.

On behalf of the operator, the Chief Executive Officer, Ikeja Electric, Mr Anthony Youdeiwoe stated that though the expectations of the Nigerian public have not been fully met, operators are working hard in the midst of the volatility of the operating grounds to meet up.

“We are not just in the business of providing power; we are in the business of providing hope, and so on behalf of the operators, we are committed to attain success.”

Meanwhile on the problem of liquidity, the power minister noted that government was working with both local and international development partners to ascertain the role they can play in the market. “We are trying to see what we can do together in order to bring the liquidity issues under some control and from there eventually solve it.”

“As pioneers you would carry some burdens, but am optimistic that together we can win,” he added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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Crude Oil

OPEC Says Uncertainties Remain High in 2021

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Nigeria's economic Productivity

OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

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Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

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Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

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