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Quantum Power on 4 March signed an engineering, procurement and construction (EPC) contract with Micoperi, part of Protan Group, for the Tema liquefied natural gas (LNG) import, storage, regasification and delivery scheme. The project has the ambitious aim of being operational by year-end, providing enough gas to generate 2,000MW. Quantum Power signed heads of terms for the construction and operation of the project with Ghana National Petroleum Corporation (GNPC) in February. The LNG project is the latest to announce progress, with Ghana 1000 and the West African Gas Ltd (WAGL) Tema schemes also taking shape.

Ghana
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The Ukraine crisis has, once more, thrown the European Union’s dependency on Russian gas into question – creating a political context in which, a senior EU official says, “we have no options but Algeria” to secure steady supply. Major international oil companies (IOCs) see the development of conventional gas fields and Algerian shales – which are recognised as some of the most promising outside North America – as a key to supplying European and wider markets over coming decades.

Algeria
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The most abundant element on earth, hydrogen, already has industrial uses, but it could do much more to transform the global energy mix as industrialised economies and the global south decarbonise. Judged by the welter of governmental and corporate statements, hydrogen is featuring large in the thoughts of planners and project promoters. These range from Chinese hydrocarbons giant Sinopec’s plans to reallocate some of its Rmb87bn ($13bn) cash pile to projects “all along the hydrogen chain” to Australian junior miner AVZ Minerals’ green lithium mine project at Manono in Democratic Republic of Congo.

DR Congo | South Africa
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Vivo Energy and Engen are to combine their two African downstream businesses, creating a giant with 3,900 service stations and 2bn ltrs of storage capacity.

South Africa
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With drilling under way at the Kingfisher development, plus new production sharing agreements and a third bid round mooted for May, Uganda expects considerable progress this year in its upstream and in building its much-anticipated pipeline and refinery infrastructure – although experts warn that potentially daunting challenges remain, writes James Gavin.

Uganda
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Adding to the welter of joint schemes discussed during Italian head of government Giorgia Meloni’s 23 January visit to Algiers was the potential revival of the Galsi pipeline. The ‘Gazoduc Algérie-Sardaigne-Italie’ project was first proposed in 2000 to carry 8 bcm/yr from Koudiet Draouche to Sardinia and on to Piombo and the mainland.

Algeria
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What will be Africa’s longest oil pipeline is now 30% complete and forecast to increase landlocked Niger’s oil exports tenfold in a ‘transformative’ Chinese-owned project that forms part of Beijing’s long-term play in the region. Other actors are looking to ramp up production using the infrastructure, with Niger – on the frontline of battle against jihadism in the Sahel – also being courted by the West.

Benin | Niger
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The reshuffle and apparent downgrade of oil minister Gabriel Obiang Lima has brought a close aide of President Teodoro Obiang, former national company GEPetrol head Antonio Oburu Ondo, into the Ministry of Mines and Hydrocarbons. The controversial new minister is also close to Obiang’s favoured son Teodorin, who is ever more strongly placed to eventually replace the octogenarian president in Equatorial Guinea’s most critical succession battle.

Equatorial Guinea
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The Greater Tortue Ahmeyim (GTA) LNG project’s phase one remains on track for first exports by end-2023, with a Phase II development decision expected in Q3 22 for first gas from end-2026. Kosmos Energy says that in a booming global market, it is looking to sell its share of gas into spot markets, even if that means paying penalties to partner BP, writes Marc Howard.

Mauritania | Senegal
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A tender issued by national ports agency ANP to update its Mohammedia facility to accommodate Morocco’s first liquified natural gas terminal and FSRU generated considerable excitement in an industry expecting the kingdom to import LNG to help cover its power industry needs after Algeria stopped sending gas through the Maghreb-Europe Gas pipeline. ANP’s tender may fit into Morocco’s LNG plans, but does not yet mean the energy ministry’s out-to-tender gas import plan is a done deal, with key stakeholders still appraising the direction Morocco will eventually take, write Our Casablanca Correspondent and Jon Marks

Morocco
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Nothing is what it seems in a political environment dominated by insincerity and double-dealing – not even the apparent victory of hydrocarbons sector bastion Mustafa Sanalla in his bitter show-down with oil and gas minister Mohammed Aoun.

Libya
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In a widely expected development, given their plunging bilateral relations, Algeria has withdrawn Sonatrach’s exports via the GME pipeline, which delivers natural gas to Morocco and Spain – posing a range of geopolitical and energy supply questions, write Dominic Dudley and Jon Marks.

Algeria | Morocco
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Sonangol announced on 16 March that San Jose, California-based Quanten LLC’s Quanten Consortium Angola subsidiary had been awarded a contract to finance, build, own and operate the Soyo refinery in Zaire province. As it seeks to raise funds by divesting non-core assets, Sonangol also announced its intention to sell Angola’s 20% stake in Abidjan refiner Société Ivoirienne de Raffinage.

Angola
Issue 430 - 14 January 2021

Zambia: VAT on fuel suspended

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Zambia has suspended value-added tax (VAT) on diesel and petrol in an effort to avert an expected price increase as the country prepares for elections in August. Finance minister Bwalya Ng’andu signed a statutory instrument zero-rating petrol and diesel with effect from 1 January. The government had previously charged VAT of 16% on petroleum products. Fuel prices were last raised in December 2019 when the kwacha had depreciated to 14 to the dollar while crude oil prices were at $70/bbl.

Zambia
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Seplat Petroleum Development Company Plc announced on 1 February that it had raised $260m of debt to fund completion of the Assa North-Ohaji South (ANOH) gas processing plant project in Imo State. Seplat is building the plant alongside Nigerian National Petroleum Corporation (NNPC) subsidiary Nigerian Gas Company through their 50:50 joint venture company ANOH Gas Processing Company (AGPC).

Nigeria