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Review Power Sector Reform Law, Stakeholders Tell FG

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  • Review Power Sector Reform Law, Stakeholders Tell FG

Industry stakeholders have urged the Federal Government to review the Electric Power Sector Reform Act, 2005 to restore investor confidence in the sector.

The stakeholders stated this in a communiqué issued at the end of the 2nd Nigeria Energy Forum held in Lagos, where participants from government, development partners, industry, academia and the private sector explored opportunities in the nation’s energy supply industry.

The forum’s Chair and Technical Lead, Dr. Oluwole Adeuyi, said the programme was organised by a team of young energy researchers and academics in the United Kingdom, in collaboration with the Nigerian Institution of Electrical and Electronics Engineers.

The communiqué said the EPSR Act should be reviewed to create a gas regulator, introduce retail competition, smart metering and accurate billing in electricity distribution, and implement cost-reflective gas and electricity tariffs.

It said the proposed independent gas regulator should implement the gas-to-power master plan, guarantee payments to gas suppliers, introduce policies to attract private investments for development of gas infrastructure, and engage host communities to reduce vandalism of assets.

The communiqué read in part, “Renewable (solar) technologies could improve energy access for households and unlock economic growth for businesses; hence, government subsidies on tax and duty waivers should be implemented to overcome barriers to market entry and regulations should be introduced to allow efficient mobile banking sector that allows telecoms companies to process small payments for pay-as-you-go solar schemes.

“The domestic renewable energy manufacturing industry should be developed by the private sector with support from the Bank of Industry and Renewable Energy Agency, as importation of equipment would not guarantee long-term sustainability of the renewable energy sector.”

It was also recommended that an Energy Innovation Fund should be established by the public and private sector to support early-stage business ideas, build a pipeline for energy access using different renewable technologies, and demonstrate the effectiveness of innovative technologies in energy networks.

The communiqué said collaborative international research and training opportunities on renewable off-grid technologies, electric power systems and energy networks should be provided to professionals in the public and private sector to foster knowledge-exchange and transfer practical skill sets.

It said, “Technical and economic benefits of electricity supply from generation companies to large consumers connected to the 132 kV or 330 kV transmission network should be analysed by the Nigerian Electricity Regulatory Commission and included in the proposed regulation on eligible customers.

“Regulations on private investments into energy networks should be widely disseminated to businesses, communities and individuals by utilities and the National Orientation Agency, together with guidelines on consumer complaints procedures and investor protection rights.”

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

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

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The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

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Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

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Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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