- Power Generation Drops by 207.1MW
The Transmission Company of Nigeria (TCN) said that that the nation’s power generation capacity dropped slightly from 3,959 megawatts from Jan. 4, to 3,751.90 megawatts on Jan. 12, due to dearth of gas.
The Nigerian Electricity System Operator (SO) website, a sub agency of TCN, disclosed the figure on its daily forecast website on power generation data in Lagos on Thursday.
TCN put the total output of all the generation companies at 3,751.90 megawatts, which it said had been transferred to the 11 distribution companies across the country.
The website showed that the country’s power generation also recorded lowest peak at 2,876.80 megawatts.
According to the Nigerian Electricity Supply Industry (NESI) operational report for Jan. 4, the power sector hit a peak generation of 4,959 megawatts as against 3,321 megawatts recorded in Dec. 2.
NESI said that the sector recorded highest system frequency of 51.27Hz; lowest system frequency of 48.22 Hz; highest voltage recorded was 372KV, while lowest voltage recorded on the same day was 300KV.
An official of TCN, who preferred anonymity, said that electricity generation had been dwindling due to challenges of accessing gas by generation companies.
The official said that many power projects that could boost the country’s generation were still pending due to lack of fund and gas shortage to test run the turbines.
Similarly, a top management official of Egbin Power Station, who also pleaded anonymity, said that the power plant which usually generates over 1,000 megawatts had dropped to 375 megawatts due to gas constraint.
According to him, the plant, located in Lagos, generates and distributes between 250 megawatts and 300 megawatts due to shortage of gas.
The official said that Egbin, with an installed capacity of 1,320 megawatts, had the capacity to wheel over 1,000 megawatts daily.
He said that the plant had been limited to less than 400 megawatts due to shortage of gas.
Meanwhile, the Minister of Power Works and Housing, Babatunde Fashola, during the 11th Monthly Stakeholders meeting in Lagos on Jan. 9, unveiled plans to inaugurate some electricity projects this year.
Fashola said that some of the projects to be inaugurated 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 said would run-up from 800 megawatts to 1.2 megawatts and raised the hope of possibility of partnerships in the area of development of hydro dams.
He also disclosed that there were 14 projects for transmission in Lagos State and Ikeja West, the largest in terms of transformer capacity, was 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 the minister, 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 Escravos and Forcados, so if that comes back, we are almost at 7,000 megawatts, so the target is incremental power.’’
Crude Oil Rises to $72 a Barrel on Strong Demand Recovery
Oil prices rose on Friday to fresh multi-year highs and were set for their third weekly jump on expectations of a recovery in fuel demand in the United States, Europe and China as rising vaccination rates lead to an easing of pandemic curbs.
Brent crude futures edged up 13 cents to $72.65 a barrel to 1145 GMT, a day after closing at their highest since May 2019.
U.S. West Texas Intermediate (WTI) crude futures were up 14 cents to $70.43 a barrel, a day after their highest close since October 2018.
U.S. investment bank Goldman Sachs expects Brent crude prices to reach $80 per barrel this summer as vaccination rollouts boost global economic activity.
The International Energy Agency said in its monthly report that OPEC+ oil producers would need to boost output to meet demand set to recover to pre-pandemic levels by the end of 2022.
“OPEC+ needs to open the taps to keep the world oil markets adequately supplied,” the Paris-based energy watchdog said.
It said that rising demand and countries’ short-term policies were at odds with the IEA’s call to end new oil, gas and coal funding.
“In 2022 there is scope for the 24-member OPEC+ group, led by Saudi Arabia and Russia, to ramp up crude supply by 1.4 million barrels per day (bpd) above its July 2021-March 2022 target,” the IEA said.
Data showing road traffic returning to pre-COVID-19 levels in North America and most of Europe was encouraging, ANZ Research analysts said in a note.
“Even the jet fuel market is showing signs of improvement, with flights in Europe rising 17% over the past two weeks, according to Eurocontrol,” ANZ analysts said.
Africa Oil Week Remains Force of Good for Africa
Hyve Group Plc, organisers of Africa Oil Week have confirmed that business opportunities and discussions at the 2021 edition will remain focused on driving investment into Africa for its sustainable socio-economic development, as it has done for the past 27 years.
The event which will temporarily move to Dubai for 2021 due to COVID-19 restrictions in South Africa will take place on 8-11 November 2021 and has support from key African stakeholders.
Atty. Saifuah-Mai Gray, CEO of National Oil Company of Liberia said “As an oil and gas hub, Dubai represents a huge opportunity for Governments to meet a high concentration of investors with the financial and technical capability to partner in our national upstream”
Africa Oil Week is known for driving deals and transaction across the African oil and gas sector, and after being forced to host the 2020 edition virtually, confirmation that a live event will take place in 2021 has delighted clients.
Miriam Seleoane, Assistant Director at the Department of Trade and Industry and Competition said
“The DTIC has supported the Africa Oil Week for many years. For 2021 we will be taking a delegation of 20+ companies to the Oil Week to advance partnership and investment dialogue between our South African businesses and international partners. Africa Oil Week remains a huge platform for the DTIC and our South African private sector”.
The event will run under the theme “succeeding in a changed market”, and it will be the only large-scale oil and gas event focused solely on Africa to run in person in 2021.
In a previous statement, the organiser cited Dubai as the “next best location” after Cape Town due to the exceptional progress made in the UAE’s vaccination programme. Dubai is also the leading financial centre in the Middle East, Africa and South Asia and presents an opportunity for attendees to meet with new capital holders, further driving investment into Africa.
The 2022 event will return to Cape Town, where organises have said it is the event’s “natural home” and to which they are strongly committed for the long-term.
Crude Oil Rebounds on Thursday After Slipping on U.S Weak Demand
Oil prices rose on Thursday a day after slipping on data indicating weak U.S. driving season fuel demand as investors eyed upcoming U.S. economic data.
Brent crude oil futures were up 18 cents, or 0.25%, at $72.40 a barrel, holding just shy of a high not seen since May 2019.
U.S. West Texas Intermediate oil futures rose 11 cents, or 0.16%, to $70.07 a barrel, staying near its highest since Oct. 2018.
“The market is recovering impressively from yesterday’s dismal weekly EIA report, the drop in weekly gasoline demand was particularly disappointing,” said Tamas Varga, analyst at PVM Oil Associates.
“It will interesting to see whether the monthly OPEC report due out later will confirm last month’s upbeat demand assessment for the second half the year. If it does, as expected, it should support oil prices.”
Varga added that U.S. inflation data and jobless claims would provide more direction on the health of world’s biggest economy and clues as to whether the Federal Reserve might start tapering stimulus.
U.S. crude oil stockpiles that include the Strategic Petroleum Reserve (SPR) fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration (EIA) said on Wednesday.
Crude inventories that exclude the SPR fell by 5.2 million barrels in the week to June 4 to 474 million barrels, the third consecutive weekly drop. But fuel stocks were up sharply, with product supplied falling to 17.7 million barrels per day (bpd) versus 19.1 million the week before.
Implied gasoline demand fell to 8.48 million bpd in the week to June 4, down from 9.15 million bpd from the week before, but up from 7.9 million bpd a year ago, EIA data showed.
Weighing on prices, India’s fuel demand slumped in May to its lowest since August last year, with a second COVID-19 wave stalling mobility and muting economic activity in the world’s third largest oil consumer.
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