The African Energy Chamber (AEC) is honored to confirm the attendance of Nigeria’s Minister of State for Petroleum H.E. Chief Timipre Sylva at African Energy Week (AEW) 2021. H.E. Minister Sylva will lead a Nigerian delegation that includes executives from the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) to AEW 2021, taking place on November 9-12 in Cape Town, South Africa. The participation of sub-Saharan Africa’s largest oil-producing economy speaks to the caliber and magnitude of the event, and follows a series of VIP confirmations in the past week alone.
Since his appointment in August 2019, H.E. Minister Sylva has played a pivotal role in not only facilitating investments into the Nigerian oil and gas sector, but also positioning natural gas at the forefront of the country’s energy agenda. Most recently, the Federal Government launched its ‘Decade of Gas’ initiative, under the theme ‘Towards a gas-powered economy by 2030,’ in conjunction with its National Gas Expansion Program, aimed at bolstering gas development for domestic use and industrialization.
Nigeria’s ‘Decade of Gas’ initiative succeeds the 2020 ‘Year of Gas’ declaration, which launched a range of projects, including the $2.8 billion, 614Km Ajaokuta-Kaduna-Kano (AKK) pipeline connecting the eastern, western, and northern regions of the country, as well as the construction of $10 billion Nigeria LNG Train 7.
The Federal Government has also reaffirmed its stance on funding for gas and fossil fuel projects in Nigeria and has highlighted that funding for these crucial projects should be sustained during the global transition to net-zero emissions.
Under H.E. Minister Sylva’s leadership, Nigeria is poised to exploit the country’s enormous gas resource potential – which ranks among the 10 largest worldwide and is estimated to be in excess of 600 trillion cubic feet (tcf).
Meanwhile, Nigeria’s Petroleum Industry Bill (PIB) is set to be passed by in July. This important legislation seeks to ensure an increased level of transparency and accountability in the sector and overhaul the Nigerian oil industry, while offering new fiscal incentives to investors and while restructuring the way energy projects in Africa’s largest crude producer are operated and funded.
“Nigeria intends to advocate for an Africa-centric approach to the clean energy transition – one that is able to meet our developmental goals and eliminate energy poverty, while achieving substantial reductions in global carbon emissions,” said NJ Ayuk, Executive Chairman, the AEC. “The monetization of gas resources – of which Nigeria holds 600 trillion cubic feet – will be a critical instrument for diversifying our national economies, generating regional income, boosting electrification rates and curbing gas flaring practices. AEW 2021 is a key platform to exchange best practices on transitional strategies, as well as showcase the contributions that Nigeria has made – and has yet to make – to a more sustainable future.”
Moreover, the government expects additional marginal field production to begin next year, following its second marginal field bid round which was hosted by the DPR in 2020, whereby 591 companies applied to win 57 oil fields located onshore and offshore. The new activity is expected to generate revenue of $600 million.
“Minister Sylva has been a long-time champion of Nigerian energy development, and there can be no discussion of Africa’s energy future without the presence of its leading economic and energy powerhouse. From advancing the Petroleum Industry Bill to its final stages, to successfully launching Nigeria’s first marginal fields bid round in nearly two decades, Minister Sylva has been resolute in his efforts to revitalize the oil and gas industry and unwavering in his support of a pro-African energy narrative,” continued Ayuk.
With key topics including making energy poverty history before 2030 and the future of the African oil and gas industry – the four-day AEW 2021 event will define and promote the African energy agenda through a series of elite networking events, innovative exhibitions, and one-on-one deal-making.
Since its launch two weeks ago, AEW 2021 has gained confirmation of attendance from an impressive line-up of government officials, top executives and industry leaders across the African energy value chain, including two of the top oil producers on the continent – as it pioneers a reputation for promoting Africa as the destination for African-focused events and elevating African voices within the energy transition.
Sunna Design Wins A €40 Million Contract to Deploy Solar Street Lighting in Rural Togo
Sunna Design, leader in connected solar lighting solutions, has signed a 40 million euro contract with the Government of Togo for the supply and installation over 24 months, and then maintenance over 12 years, of 50,000 intelligent street lamps. This contract, funded by the General Directorate of the French Treasury, is part of the larger project CIZO (“switch on the light” in mina language), which aims at electrifying 500,000 rural households, about 1.5 million inhabitants in 1,000 villages.
A pillar of Togo’s NDP (National Development Plan) deployed by the Togolese presidency, CIZO aims to speed up the modernization of the country, including ensuring universal access to electricity by 2030.
Connected lighting, a key step for rural development
Public lighting grids have an impact on rural communities’ life conditions and strengthening of the economy, by facilitating passenger and goods transport, pedestrian traffic, night work, as well as drastically reducing road accident rates and insecurity.
Solar street lights are autonomous and resilient energy sources, and the only relevant technical-economic solution to bring appropriate public lighting and connection services to off-grid areas. In Togo – where only 8% of the 8.3 million residents are connected to the grid – access to energy is a key factor for economical development. The challenge is also to promote geographical balance, in response to an unbridled urbanization phenomenon in Sub-Saharan Africa, through a planned deployment of sustainable, decentralized and smart infrastructures.
Mila Aziable, Minister Delegate to the President for Energy and Mines, says: “This partnership is the result of a shared ambition and is right in line with the Head of State’s will to achieve accessibility for all in terms of energy. We want to give a new dynamic to rural areas, make them more attractive through our contribution in all priority sectors and those of the local economy, while betting on innovative technologies adapted to our context, our time and our environment. This partnership clearly projects our country in a new dynamic, in the direction of a universal access to energy.”
Franck Riester, Minister Delegate attached to the Minister for Europe and Foreign Affairs, in charge of Foreign Trade and Economic Attractiveness: “We are proud to support Sunna Design’s sustainable public lighting project in Togo, for the benefit of more than 1.5 million inhabitants in rural areas. Under the initiative of the President of the Republic, we made Africa a priority of our international action. Central to our strategy is the will to accompany the development of infrastructures and technologies in a sustainable city. In these fields, our SMEs such as Sunna Design have an internationally recognized expertise. It is together, with our African partners, with the support of the private sector, that we must accompany the continent’s economic development.”
“The trust granted by the Togo Government – a visionary, pioneer and highly demanding partner in the fields of electrification and digitization in rural environment – acknowledges the solidity of Sunna Design’s know-how, as well as our capacity to innovate and accompany our clients over time” says Ignace de Prest, Sunna Design CEO. “That also represents a new step in our company’s transformation, now an essential partner for both urban and rural applications. The impact of the project on populations strengthens the teams’ commitment and our company’s project.”
A sustainable technological solution with a 12-year guarantee
Consisting of 50,000 connected street lights, Sunna Design’s project notably plans for:
- Solar lighting roll out in priority areas, identified and investigated beforehand via an unprecedented census study of rural infrastructures, ensuring a measurable economic and social impact of each lighting point on people
- The use of iSSL+ solutions, all-in-one connected street lights with batteries designed to resist high temperatures, produced by Sunna Design at its “Factory of the Future” labeled industrial site, in the Bordeaux region
- Operation and maintenance services during 12 years, including participation and strengthening of an ecosystem of local operators, promoting local employment
- Provision of a transparent platform for monitoring implementation and detailed performance of the solar solutions, accessible to public authorities, private and financial partners
The Togolese Agency for Rural Electrification and Renewable Energies (AT2ER), promoter of the project, was able to validate Sunna Design’s technical lead, robust equipment and track record in Sub-Saharan Africa rural areas, and finalize a unique project including performance and guarantee commitments over time.
Solar lighting related (connected) services
Sunna Design’s know-how extends beyond lighting: its solutions can integrate an ecosystem of IoT applications (connected objects), powered by the clean energy provided by Sunna Design’s intelligent solar batteries.
Autonomous and connected, these applications answer several needs in terms of connectivity, telecommunications and safety. They represent a development focus of the digital economy, another pillar of Togo’s NDP.
This innovative application has already been successfully implemented and tested by Sunna Design in Togo, in the frame of a pilot project operational since 2020, financed by the FASEP fund of the General Directorate of the Treasury. This project will allow the continuation of these experiments in some targeted areas, as well as skill improvement on the “WiFi Grid”, to offer Internet access to villages through the solar street lamps.
“This project will combine decentralized energy and broadband connectivity to provide both public lighting and Internet access to the populations. Thus, it complements our vision towards accelerating the convergence between energy and digital technology, which we will initiate by deploying optical fiber on the electric network” says Cina Lawson, Togolese Minister of Digital Economy and Technological Innovation.
A turnkey project with financing at the heart of Sunna Design’s strategy
This exemplary contract is at the core of Sunna Design’s strategy, aiming at bringing answers to its customers’ long-term issues, in the form of services. Three years after being the first company to offer Solar Lighting as a Service (SLaaS) in the United States, Sunna Design replicates the offer in Africa, and works to replicate it again. This project, carried out in Togo and financed by a direct loan from the General Directorate of the Treasury, proves that the company now has the most advanced range of technical solutions on the market, as well as the most comprehensive portfolio of services (installation, maintenance, operations, financing). This contract also marks the achievement, on a large-scale project, of the vision of solar lighting as a lever of economic and social development in rural environments, inspired by Thomas Samuel, Sunna Design’s founder, who also developed the project.
Developing African Petroleum Value Chains
Despite the global shift towards cleaner sources of fuel, the African continent – representing the highest number of people without access to energy globally – still requires fossil fuel development, if it is to meet its developmental goals. Accordingly, oil and gas-producing nations across the continent are ramping up efforts to develop a sustainable, viable and high reward petroleum sector in Africa.
Speaking at an African energy producers’ forum at African Energy Week (AEW) 2021, African oil and gas ministers provided insight into Africa’s oil potential, strategies to expand the energy value chain and opportunities for regional and international cooperation.
Opening the African energy producers’ talk, Irene Etiobhio, Senior Petroleum Industry Analyst at the Organization of Petroleum Exporting Countries (OPEC), emphasized the role of oil in Africa’s energy future. Presenting OPEC’s World Oil Outlook 2021, launched earlier this year, Etiobhio offered key insights into both Africa’s and the world’s oil outlook.
“The OPEC outlook provides an in-depth view and analysis of global oil issues. It is important to restate that the outlook is not about projections, but should be viewed as a helpful and insightful guide. Our data is based on key assumptions,” stated Etiobhio.
Alongside the presentation, African energy ministers elaborated on the role of oil in Africa. Panel participants included H.E Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea and Hon. Dr. Mohammed Amin Adam, Deputy Minister of Energy of Ghana.
Africa’s oil and gas industry is facing a dual challenge: to satisfy growing demand for petroleum products and to outpace the deployment of alternative, non-fossil sources of energy. Taking these two challenges into consideration, the panel participants provided insight into how the sector, and oil and gas companies in particular, plan to increase production while decarbonizing industry activities.
“Oil will play a significant role in the African energy mix and will take the highest share over all forms in the future mix. However, with the demand of over 600 million without access to electricity, Africa must do this in a modern way. We must not solve one problem while creating another. Africa needs to also take care of the environment,” continued Etiobhio. “We must have a clear mandate and one voice on how we are going to meet our emissions targets. China has said that by 2060, it will achieve carbon neutrality. Europe has set its target for 2025. Africa needs to do this, as well.”
Many African countries are looking to significantly enhance production, and are therefore looking to attract investment, as well capacity enhancement, across the entire energy sector value chain. During the panel, speakers discussed how Africa can fast-track the creation of an investor friendly environment, while still increasing local capacity.
“At this stage in Africa, we have come to the realization that someone has to be responsible, and for the first time, we have to take responsibility for the sector,” stated H.E. Minister Lima. “When the lockdown started, flights and movements stopped, and many expats could not fly or work. Could we actually continue operations with just national companies? The answer was yes, and for five months, Equatorial Guinea was operating almost 90% domestically. Our installations were operated by our own people, and so it was thanks to COVID-19 that we realized this.”
“Ghanaians took over the Liquefied Natural Gas processing facility. We have built reasonable local capacity to operate this facility. I am so hopeful that there is potential for Africa to develop, but we have to start doing it. If we make the effort to develop our capacity, then we will be able to do that,” added H.E. Deputy Minister Dr Adam.
Nigerians Abandon Gas Due to Surging Prices, Resort to Firewood and Charcoal
The surge in the price of gas prices has caused many Nigerians to resort to firewood and charcoal to cook, according to an open letter written to the government by retailers of the product.
LPG imports make up about 65% of the entire market, and they are being discouraged by several factors. One of the reasons for the decrease in imports is the lack of foreign exchange. This lack of imports had then led to a large reliance on domestic supplies, according to the Nigerian Association of Liquefied Petroleum Gas Marketers on Monday November 8, 2021.
As at today, Nigerians are now paying up to triple the amounts they paid for gas in January 2021. A 12.5-kilogram cylinder could now cost up to N10,200 ($25) according to the NALPGAM. These fast-rising prices mean that Nigerians are now abandoning LPG to go back to firewood, charcoal and kerosene regardless of the dangerous implications on the environment and one’s health. NALPGAM said this in an open letter to the Minister of State for Petroleum Resources, Timipre Sylva.
Nigeria is Africa’s largest crude oil producer, yet has refused to tap into the huge gas reserves which it possesses. Most of the country’s gas output is wasted due to inadequate infrastructure to properly exploit the resource. According to Nigeria’s official statistics agency in a 2020 report, only about 17% of the entire population make use of gas to cook; the rest make use of firewood or charcoal-fueled stoves.
The Nigerian President, Muhammadu Buhari pleaded for international financing for what he referred to as transition fuels like gas, which will help Nigeria take more steps toward renewable energy in the future. The President said at the COP26 conference in Glasgow on November 2, that gas will be highly important in addressing the clean cooking challenge and also help to reduce deforestation. He also touted that gas will help solve the country’s long-standing problems with electricity.
NALPGAM called on the government to maintain a steady supply of the dollar to LPG importers, urging the government to suspend the planned reintroduction of VAT and Customs duties.
If the gas prices continue to rise at this rate, more Nigerians will continue to abandon gas in favour of the more harmful alternatives, until the dangerous options are recognized as the norm. The government is encouraged to take necessary action in order to prevent possible casualties to human life where possible.
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