The Buzz: This Week in Africa

At the beginning of the week, Brent Crude is trading at $67.55, WTI at $62.35 and natural gas at 2.68 per million BTU (at 11:43, 9 April 2018, South Africa). Here are AOP’s top five stories from the last seven days.

South Africa: 27 Renewable Energy Deals Signed

After a long delay and last minute legal challenge by labor unions NUMSA and Transform RSA, power purchase agreements for the 27 renewable energy deals in South Africa have been signed.

The signing of the IPP contracts marks the first major investment deal under President Cyril Ramaphosa.

The agreements are part of the government’s Renewable Energy Independent Power Procurement Programme, which has been on hold for three years.

Kenya to Build LPG Facilities

The Kenya Pipeline Company plans to build facilities worth $125 million to handle and store liquefied petroleum gas in order to increase the use of cooking gas in Kenya.

While charcoal, firewood and kerosene are in common use in Kenya, 30 percent of the population living in urban areas uses LPG and as forest cover diminishes from logging for charcoal and firewood, the government is hoping to increase the use of LPG beyond urban areas.

In making LPG more accessible and affordable, the Kenyan government has done away with VAT on cooking gas and subsidized the cost of 6 kg cylinders.

Nigeria to Develop Gas Pipeline Project

On Friday, the Nigeria National Petroleum Corporation announced the signing of contracts for the construction and financing of the 614-km Ajaokuta-Kaduna-Kano Gas Pipeline Project.

The contracts, valued at over $2.8 billion, will include the engineering, procurement, construction, and commissioning of the gas pipeline and stations. The project is scheduled to be completed in two years and this will be the biggest gas pipeline in Nigeria.

Savannah Petroleum Spuds First Well in Niger

UK-based oil and gas company Savannah Petroleum has spudded the first of its three wells in the Agadem Rift Basin in south east Niger.

Bushiya-1 is located on the R3 portion of the R3/R4 PSC Area in the Agadem Rift Basin. Work on the well is expected to take up to 40 days, and will be drilled to a depth of 2,114 meters.

South Africa: World’s Largest Oxygen Production Plant

The world’s largest oxygen production plant built by Sasol and Air Liquide started operating last month in Secunda in the South African province Mpumalanga.

The plant, valued at 2.9 billion rand (approx. $240 million) is the largest air separation unit ever built. For the plant, Air Liquide built and operated a 5,000 ton per day air separation train in order to supply oxygen and nitrogen to Sasol’s proprietary synthetic fuels and chemicals manufacturing process.

As the 17th oxygen train at Secunda, the plant will contribute to economic growth, provide employment opportunities and encourage investment into South Africa.



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