The Buzz: This Week in Africa
At the beginning of this week Brent Crude is trading at $52.42 per barrel, WTI at $47.40 per barrel and natural gas at $2.89 per million BTU (beginning of day 28 August 2017). Here are AOP’s top five stories from the last seven days.
Eq. Guinea, Ghana To Sign LNG Deal
Ghana’s president, Nana Akufo-Addo, is expected to sign a LNG import agreement with Equatorial Guinea when he visits the country this week, according to Reuters.
Equatorial Guinea, the third-largest oil and gas producer in Sub-Saharan Africa, already produces LNG from the Punta Europa gas processing facility, and is expected to begin LNG production from the Fortuna FLNG project in 2020. Ghana, though also an oil and gas producer, requires additional gas supplies to boost power generation capabilities.
“The execution of this agreement is intended to augment domestic supply over the period, and improve further the power situation in the country, both for local consumers and industry,” according to a statement from Akufo-Addo’s administration.
Nigerian Navy Seizes 1.1m liters of Stolen Fuel
The Nigerian Navy has seized 1.1 million liters of stolen diesel in the Niger Delta, which had been siphoned from pipelines and belonged to international oil companies, according to Vangaurd.
The seizure and arrest of 13 suspects for the thefts come as Nigeria is attempting to boost oil and gas output, and after the government promised increased security in the region. Authorities are attempting to eliminate oil theft and illegal refining, which has long-plagued the region.
Zambia Wind Plant Lands $1.05m Grant
The first planned wind farm in Zambia, being developed by Access Power, has received a grant from the US Trade and Development Agency of $1.05 million to conduct feasibility studies and other groundwork, according to ESI Africa.
Access Power, along with its strategic partner, EREN Renewable Energy, plans to build one of the largest renewable projects in Sub-Saharan Africa, with the $275 million project expected to produce 500GWh of electricity.
Tanzania Needs Natural Gas Master Plan
The Tanzania Petroleum Development Corporation plans to create a master plan for the use of domestic gas, as well as the infrastructure needed in order to take advantage of domestic supply. Tanzania, which has recently made mega discoveries in the Rovuma Basin, already produces gas at the Mtwara and Songo Songo fields, but only about 10 percent of the current gas supplies are used for power generation or other domestic purposes, according to a report by ESI Africa.
The country aims to create gas-fed industrial and power sectors, and build the infrastructure needed to utilize domestic supply.
Angola’s Ruling Party Maintains Power
Though Angola’s president of 38-years, José Eduardo dos Santos, is stepping down, elections last week have confirmed that the country’s ruling party will continue to run the country. João Lourenço will take over as president of Africa’s second largest oil and gas producer, winning with 61 percent of the vote after 98 percent of ballots were counted, according to the Financial Times.