- NNPC Announces Commitment to Grow Domestic Gas Utilization to 5bcfd by 2022
The Nigerian National Petroleum Corporation (NNPC), has announced its commitment to grow domestic gas utilization in-country to 5billion cubic feet of gas per day from the current 1.7 billion cubic feet of gas per day by 2022.
The NNPC also expressed optimism that by 2027, the growth will extend to 7.4billion cubic feet of gas per day.
The Chief Operating Officer, Gas and Power, NNPC, Yusuf Usman, disclosed this in his presentation delivered at the Nigeria International Pipeline Technology and Security Conference in Abuja on Thursday.
In a statement released by NNPC Usman was quoted saying, “Based on all current known domestic gas supply projects, domestic gas supply is forecast to close the demand by 2021 as we have identified Seven Critical Gas Development Projects (7CGDP) currently being fast tracked to bridge the foreseen supply gap by 2021.”
He also said that the completion of the three main domestic gas transmission systems would add 6.8billion cubic feet of gas per day capacity while another 2.2billion cubic feet per day capacity is expected from the 36- inch Escravos to Lagos Pipelines (ELPS) 1 and 2 upon completion.
He further said that by first quarter of 2020, the ongoing East to West connection via the 48-inch Obiafu Obrikom to Oben pipeline (OB3) with 2.4 billion cubic feet per day capacity would be completed. He added that 2.2billion cubic feet per day capacity is expected from the 40-inch Ajaokuta to Abuja to Kaduna to Kano (AKK) gas pipeline which would be completed by the fourth quarter of 2022.
Usman said that aside, its 2.2billion cubic feet per day capacity, the AKK would increase the national grid by 3,600 megawatts of power, in addition to supporting the production of methanol, petrochemical fertilizers, amongst others.
He also said that to develop gas infrastructures, the Corporation had adopted the project financing scheme for AKK and other gas projects.
Barclays Tell High Net Worth Investors to Shun Africa and Other Emerging Economies
Barclays to High Net Worth Clients, Stay Off Africa and Other Emerging Economies
Barclays, one of the world’s largest investment banks, has started advising high net worth clients to stay off Africa and other emerging economies.
According to Barclays, despite the recent recovery noticed in emerging-market stocks, investors are better off avoiding the risks that still abound in emerging nations. Barclays Plc, however, advised high net worth clients to focus on U.S equities despite the S&P’s breakneck rally.
The investment bank said emerging economies do not have enough fiscal buffers to spend their way out of the COVID-19 pandemic and will likely continue to struggle in the near-time compared to the US with 12 percent of gross domestic product fiscal-support.
It said the huge US stimulus may halt rebound in emerging-markets stocks as more money is expected to flow into the world’s largest economy and its European counterparts.
“Compared to the U.S., emerging-market economies appear more vulnerable,” said Haider, the London-based managing director and head of global growth markets. “Their central banks have less room to maneuver, their governments may not be able to provide unlimited support and equity markets, given their sector mix, can be more challenged by an economic slowdown.”
Barclays added that even after 33 percent rebound in stocks of emerging markets since the panic selloff subsided in March, stocks are still down by 9 percent from year-to-date while the US S&P 500 stocks are up by 45 percent. Presently, their stocks trading at a 36 percent discount to US stocks, up from 25 percent three months ago.
Crude Oil Rises to $43.1 Per Barrel on Production Cuts Extension
Crude Oil Hits $43.1 Per Barrel Following OPEC’s Production Cuts Extension
Brent crude oil, against which Nigerian oil price is measured, rose by 1.25 percent on Monday during the Asian trading session following OPEC and allies’ agreement to extend crude oil cuts to the end of July.
OPEC and allies, known as OPEC plus, agreed to extend production cuts of 9.7 million barrels per day reached in April to July on Saturday.
In the virtual conference, delegates agreed that members, including Nigeria and Iraq presently struggling to attain a 100 percent compliance level must keep to the agreement or be forced to do so in subsequent months.
Nigeria, Iraq and others failed to keep to the cartel’s agreement in May after reports show that Nigeria only managed to attain a 19 percent compliance level during the month while Iraq struggled to attain just 38 percent in the same month.
Russia and Saudi Arabia, the two largest producers of the group, warned members to stick to the agreed quota if they want to rebalance the global oil market.
“While the errant producers such as Iraq and Nigeria have vowed to reach 100% conformity and compensate for prior underperformance, we still think they will likely continue to have some commitment issues over the course of the summer,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.
“The potential return of Libyan output could also cause considerable challenges for the OPEC leadership.”
Earlier on Monday, Brent crude oil hits $43.1 per barrel, more than a month record-high, before pulling back slightly to $42.83 per barrel.
Gold Dips by 2 Percent on Better Than Expected Job Report
- Gold Dips by 2 Percent on Better Than Expected Job Report
Gold prices declined by 2 percent on Friday following a better than expected US non-farm payroll report.
The report showed an increase of 2.5 million payroll numbers against a decline of 7.5 million predicted by many experts.
The surprise number boosted investors’ confidence in US recovery as many dumped their haven investment (gold) for the stock market.
“We had significantly stronger-than-expected U.S. payroll numbers – an increase of 2.5 million versus an expectation of a decline of 7.5 million – that 10-million swing has brought forward expectations of the economic recovery in the United States,” said Bart Melek, head of commodity strategies at TD Securities.
Spot gold immediately declined by 1.9 percent per ounce to $1,678.81 while the U.S. gold futures slid 2.6 percent to settle at $1,683.
Gold was also being pressured by stronger yields and a slightly firmer dollar, “meaning the opportunity cost to hold gold in the portfolio has gone up,” Melek added.
The surprise didn’t stop there, US Dow Jones was up 614 points despite the protest going on the US and US-China tension.
Also, NASDAQ rose by 29 points while the S&P index added 50 points increase.
Note: Investors generally increase their investments in gold and other haven assets during a crisis to avert risk exposure and do the opposite once they sense a better economy.
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