Connect with us

Energy

Seplat Energy Commits To Supplying Right Energy Mix For Nigeria’s Growth

Published

on

Seplat Energy grows 2021 full-year gross profit by 128.9% to N114.2bn

…Seplat Energy at SPE NAICE 2022 delivered a Keynote that gave an insight into the energy transition conversation and Africa’s place

Olushola Okunlade Writes

Leading indigenous energy company, Seplat Energy Plc has said its greatest business opportunity ahead of it is to supply the right mix of energy to support Nigeria’s growth.

In doing so, the company said it remained committed to making positive social impacts and contributing to Nigeria’s achievement of the United Nations’ Sustainable Development Goals (SDGs).

Mr. Effiong Okon, the Director, New Energy at Seplat said this while delivering a keynote at the 45th edition of the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) themed: ‘Operationalising a Clean Energy Transition for Sustainable Development in Africa’ on Wednesday.

Okon, who represented Mr. Roger Brown, CEO of Seplat Energy, said for a successful energy transition in Africa: “We must support the goals of the Paris Agreement and align with society’s objective to get the world to net zero carbon emissions by 2050, if not before.; as lower-emission hydrocarbons, particularly gas, have a role to play during energy transition by replacing diesel generators and biomass.

“Though hydrocarbon export will continue to be a mainstay of the Nigerian economy and will fund Nigeria’s growth as well as its energy transition, the Oil & Gas Industry has a role to play as a responsible steward of Nigeria’s oil and gas assets, including those that might be divested.”

According to him, in the longer term, the reality and threat of climate change require the decarbonisation of energy systems in Nigeria, but sustainability and transparency must be at the heart of business operations and decision-making.

Speaking on ‘just transition’ Okon noted that there is the need to balance decarbonisation with development, adding that: “Global warming and climate volatility are existential threats to humanity and nature. The world needs to accelerate efforts to achieve net-zero and mitigate warming effects. Africa’s climate, agriculture, and people will suffer most in the coming decades. The problem has been caused by emissions from developed-world countries that have enjoyed their ‘carbon privilege’ and built strong economies on fossil fuels.

“However, we need to consider the reality in the continent. Poverty, hunger, unemployment, and population growth abound here. Africa contributes just 3.3% of global emissions. Most Africans (600 million) lack access to reliable energy, which hampers development. The use of inefficient and costly diesel/petrol generators saps financial resources, drains foreign exchange, and creates pollution.

“Biomass use for cooking causes deforestation, health problems, and nearly 0.5 million premature deaths in Sub-Saharan Africa every year. The developed world’s drive to impose decarbonisation on Africa will constrain development.”

Making the case for gas, the Seplat Director said the developed-world pressures to abandon fossil fuels are being pushed back by recognition of the need to drive development with reliable energy.

COP27, he explained, would focus on how best to achieve this balance for the benefit of tomorrow’s 2.5 billion Africans, of whom 500 million will be Nigerian, adding that given current low emission levels, Africa can achieve a disproportionate improvement in living stands through a globally small increase in emissions from cleaner gas for power and cooking.

He called on players in the continent to leverage oil and gas revenues to cash flow transition, but also tap international transition funding where available, hence the need for good corporate governance.

The Seplat Energy executive, therefore, urged industry operators to focus on quick wins first, which are: decarbonising the upstream and focusing on producing ‘advantaged’ low-carbon barrels with low Scope ½; end routine flaring and redeploy gas to power operations and local communities, and deploy renewables to power operations where possible, and share with local communities.

He added: “We need to develop gas as a transition fuel (Gas-to-power to replace diesel, move along value chain into power, e.g. business parks, large buildings; hybrid gas-to-power / solar offerings; and bottled gas products for domestic use. In addition, we can expand into renewables (hydro, wind, geothermal, blue/green hydrogen; and develop and monetize carbon capture and storage.”

Energy

Savannah Energy Signs New Gas Sales Agreement with Notore Chemical Industries PLC

Published

on

Savannah Energy Signs New Gas Sales Agreement with Notore Chemical Industries PLC

By John Meze

Savannah Energy PLC, the British independent energy company focused on the delivery of Projects that Matter in Africa, has announced that the Company’s 80% indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement (“GSA”) with Notore Chemical Industries PLC (“Notore”).

Accugas will supply Notore with up to 10 MMscfpd of gas to augment its current supplies. The contracted supply is on an interruptible and reasonable endeavours basis, based on gas availability and nominations, for an initial term of one year, with the option to extend for a mutually agreed period. Notore’s fertilizer production plant is connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi and no further tie-in or capital expenditure is required by Accugas to deliver gas to Notore.

Notore Chemical Industries PLC, formerly Notore Chemical Industries Ltd, is a Nigeria-based integrated agro-allied, chemicals and infrastructure company located in the Onne Oil and Gas Free Zone area of Rivers state in southern Nigeria. Notore’s primary business is the production of urea, ammonia, and NPK blend fertilisers and sale to the Nigerian and international markets. Notore’s facility has a production capacity of 1,500 metric tons (MT) per day of urea and 1,000 MT/day of ammonia.

Andrew Knott, CEO of Savannah Energy, said: “I am pleased to welcome Notore as a new gas customer to Accugas, representing our tenth customer site in total (versus three at the time of our acquisition of the Accugas business in 2019). We look forward to developing our working relationship with Notore over the course of the coming months and years.

Savannah Energy PLC is an AIM-quoted British independent energy company focused on the delivery of Projects that Matter in Africa and is active in Cameroon, Chad, Niger, and Nigeria.

Continue Reading

Energy

Bonny Light Energy Offshore Set To Supply 60m Litres Aviation Turbine Kerosene

Published

on

Bonny Light Energy Offshore Set To Supply 60m Litres Aviation Turbine Kerosene

By John Meze

In an effort to ameliorate the aviation fuel supply disruption to the aviation industry, Nigeria’s emerging indigenous oil and gas major, Bonny Light Energy  Offshore Limited, has agreed to the supply of 60,000,00 0 litres of Aviation Turbine Kerosene (ATK) in the next six months.

This projected supply aligns with the pressing need for an increased supply of the much-needed fuel to sustain flight operations for millions of travelers in the country.

Speaking on this commitment, Mr. Toyin Banjo, Chief Executive Officer, Bonny Light Energy, and Offshore Limited, stated that the company’s response aligns with the company’s desire to salvage the Nigerian aviation sector from the daunting effects of the fuel shortage that is ravaging the global airline industry.

“The aviation industry is one of the most energy-intense sectors in the global economy regarding its consumption metrics. Unfortunately, as the industry began recovering from the COVID-19 pandemic-inspired slump in the global aviation sector, external pressures such as the Russia-Ukraine war have driven a sudden hike in fuel prices worldwide, which has resulted in a shortage of aviation fuels, thereby leading to this national aviation crisis.

“This is where our contributions come in. We are aware that Nigeria must build on its reputation of having a stable aviation industry, especially as it is the economic hub of Africa. However, as we have seen in recent times, global constraints can plunge our local aviation sector into a supply crisis despite Nigeria’s oil-rich status.

“As a responsible organisation with an understanding of the intricacies of international energy supply dynamics underpinned by our local knowledge of the Nigerian aviation space, we are committing a total of 60,000,000 litres of aviation turbine kerosene (ATK) monthly over the next six months.

“All things being equal, we are envisaging a supply of 60,000,000 litres of ATK, by the end of the year. We strongly believe that this corporate action will positively affect the supply crisis in Nigeria’s aviation industry and provide much-needed relief in the already strained sector.

“We, however, understand the complexities of the global aviation industry, as well as the existence of numerous factors which may impede the fulfillment of our projection. Some of these constraints include the paucity of foreign exchange, poor competitive currency lines by banks to support importers and marketing companies, and high logistics costs for transshipment or trans-loading of time-critical products.

“Despite these factors, we will continue in our strides, having supplied the market with similar volumes in the last quarter, ensuring that the projected volumes are achieved as an enduring solution to this supply gap in our aviation industry, especially in the imminent Ember Months and the electioneering season,” he further stated.

Bonny Light Energy and Offshore Ltd is an emerging corporation in Nigeria’s indigenous exploration, production, pipeline transportation, strategic storage, and marketing of petroleum products.

Over the years, the company has built expertise in the upstream, downstream, and midstream sectors of the oil and gas industry in Nigeria. It trades in both crude and refined petroleum products, which include Motor Fuels (Gasoline), Industrial Oils (AGO/Gasoil, Baseoil LPG) Aviation Fuels (ATK), Lubricants, and other various specialist oils (Bitumen).
 As a leading integrated Nigerian oil and gas exploration and production company, Bonny Light Energy augments a wide range of energy needs in the economy’s upstream, midstream, and downstream sectors – markets refined petroleum products and provides jetty services.

Continue Reading

Energy

Seplat Energy’s MPNU Ministerial Approval Stands, No Withdrawal

Published

on

Seplat Energy grows 2021 full-year gross profit by 128.9% to N114.2bn

Olushola Okunlade Writes

Seplat Energy has officially responded to some false reports that the Ministerial Approval of the Company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has been withdrawn.

The company deemed it fit to state categorically that the ministerial appointment stands and there was no withdrawal of any kind at all.

Seplat Energy Plc become aware of a news report claiming that Ministerial Approval of the Company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has been withdrawn on Thursday 11 August 2022.

Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities.

“We will continue to work with all parties to achieve a successful outcome for the proposed acquisition and will provide an update in due course” the company assured.

This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).

Continue Reading

Trending