Higher Demand For Gas In Europe Would Trigger Competition With Asia In The Short-run

17th February 2023

…And Dominate LNG Trade In The Long Term – Shell

Dutch oil giant, Shell has said that the significantly higher demand for liquefied natural gas in Europe would intensify competition with Asia in the short term, and dominate LNG trade in the longer term.

In its annual LNG outlook on released yesterday, [Thursday], Shell noted that European countries, including the UK, saw their LNG imports jump by 60% last year, to 121 million tons.

Global LNG trade hit 396 million tons last year, an increase of 16 million tons compared to 2021. The surge in Europe’s imports in 2022 was facilitated by a 15-million-ton, or 19%, decline in China’s imports due to the zero-Covid policy, and a marked drop in South Asia’s LNG imports due to the high prices, Shell said.

Also Read: Russia Turns Its Oil Flows To Asia As New EU Sanctions Kick In

At the same time, Europe’s pipeline gas imports from Russia slumped by 53% in 2022 compared to 2021. “The war in Ukraine has had far-reaching impacts on energy security around the world and caused structural shifts in the market that are likely to impact the global LNG industry over the long term,” Steve Hill, Shell’s executive vice president for energy marketing, said in a statement.

LNG could become a core energy supply for Europe to meet energy security needs, while China could increasingly provide more flexibility to the global LNG market, the supermajor said.

Shell said further that through the mid-2020s, that is over the next two years, the global LNG market will remain tight as Europe and Asia compete for limited new LNG supply.

Also Read: EU, G7 and Australia Agree Price Caps On Russian Petroleum Export

Also new supply – especially from Qatar and the United States – is set to hit the market in 2025-2026. Around 80% of new LNG supply by 2030 will come from those two major LNG exporters, Shell noted.

However, the supermajor warned that another supply-demand gap could be looming in the late 2020s without new investment in additional supply.

By Ken Okafor

Russian Oil Revenue Has Been Effectively Affected By Sanctions, Despite Resilient Exports

Chibisi Ohakah

17th February 2023

The International Energy Agency [IEA] has noted that Russia’s oil revenue has been seriously affected by price caps and sanctions imposed by Western nations, even as Moscow has been able to redirect its product outside of Europe.

The Group 7 and the European Union had imposed a price cap of $60 a barrel on Russian seaborne crude oil in December, banning imports, ramping up sanctions for Russia’s war on Ukraine.

The initial sanctions were closely followed on February 5 by an EU embargo on refined Russian oil products. The sanctions also prevent European firms from providing shipping and related financial services for Russian cargoes worldwide, unless they abide by the price cap.
The idea was to hit Vladimir Putin’s war chest without causing a supply shock, while reducing his national revenue and ability to sustain the war.

“The price cap was put in place to allow for Russian oil to continue to flow to market, but at the same time reducing Russian revenues. Even though Russian production is coming to market, we’re seeing that the revenues that Russia receives from its oil and gas have really come down,” Toril Bosoni, head of the IEA’s oil industry and markets division, said in a CNBC interview on Wednesday.

Also Read: Banks Linked To Russia To Suffer Sanctions

IEA said in a February market report that Russia’s export revenue fell 36% in January from a year ago to $13 billion.
“Russian fiscal receipts from the oil industry is down 48% in the year, so in that sense we can say that the price cap is having its intended effect,” Bosoni said.

He also noted the gap between prices for Russian Urals, the country’s largest crude oil export, and those of Brent crude, the international benchmark.

Russia sold Urals at an average price of $49.48 per barrel in January, the Russian finance ministry recently said, while Brent fetched more than $80 a barrel last month.

Last Thursday, Brent was around $85.45, and the Urals blend was around $56 on Wednesday. But Russia’s 2023 budget is based on a Urals price average of $70.10 a barrel, according to the CNBC report, suggesting the Kremlin will run deficits at current price levels.

Oil exports and production by Russia have held up “much better than expected” in recent months, Bosoni said, pointing out that Russia has been able to reroute crude shipments of crude to Asia and the G-7 price cap appears to be helping sales volume as Russia has had to sell its oil at lower price points to countries complying with the mandate.

Also Read: Sanctions: Russian Oil Price Cap Hitting Target – G7

Output in January was down “only” 160,000 barrels a day from pre-war levels, and Russia shipped 8.2 million barrels a day to markets, said the agency in its report.

It also noted Russian deputy prime minister, Alexander Novak, has said his country would curb output by 500,000 barrels a day in March rather than sell to countries that recognize the G-7 price caps.

Bosoni told CNBC the move was in line with its expectations and that there’s enough supply to meet demand in upcoming months.
The market may tighten around summertime when refinery activity accelerates to meet demand, and China’s expected rebound in activity is likely to jump, she said.

Natural Gas Futures Contracts Suggest Europe’s Energy Crisis Isn’t Over

Orient Energy Review

16th February 2023

Europe’s natural gas futures point to structurally higher prices for the rest of the year, as Europe will soon have to start filling inventories for the 2023/2024 winter.

The TTF price, Europe’s benchmark, slipped on Monday to the lowest level since September 2021, and Europe looks confident that there will not be gas shortages this winter.

However, the race to ensure supply for next winter hasn’t even started in earnest yet. Prices are set to hold higher than before the Russian invasion of Ukraine through the summer as Europe will face stiffer competition from Asia for liquefied natural gas (LNG) supply.
TTF futures for December are priced above €60 per megawatt-hour, notably higher than the €54 per megawatt-hour for March.

Also Read: Renewable Energy Infrastructure Will Take Decades To Develop, Experts Say

Last year, Asia – including China – saw lukewarm demand amid high spot prices and a slowdown in the Chinese economy. With China’s reopening, however, demand for gas and LNG is set to rebound, increasing the competition between Asia and Europe for spot supply, analysts say.

Moreover, the weather in Europe has been milder than usual for prolonged periods so far this winter, allowing for less gas consumption for heating and power generation. It is far from certain that Europe, and the northern hemisphere as a whole, will see mild temperatures next winter, too.

Governments and regulators in the EU say that while a major gas shortage crisis has been averted for this winter, next winter could be more difficult.

Also Read: G7 EU Nations Oppose ‘Radical’ Changes To The Bloc’s Energy Market

“Prices seem likely to remain structurally higher than they were before the Russian invasion,” Henning Gloystein, director for energy, climate and resources at Eurasia Group, said in a recent note carried by Bloomberg.
Europe continues to add new LNG import capacity, especially in Germany and the Netherlands, but if global supply is tighter, prices will spike again.

Europe’s gas prices were up by around 3% at $58 (54 euros) per megawatt-hour (MWh) around noon in Amsterdam on Wednesday.
Prices have held in the $53-64 (50-60 euros) per MWh for weeks amid higher-than-seasonal gas inventories, mild weather, and steady inflows of LNG.

By Tsvetana Paraskova for Oilprice.com

OPEC Ups World Oil Demand Forecast For 2023

Orient Energy Review

16th February 2023

Last Tuesday, OPEC published a demand growth forecast calling for 400,000 bpd in growth from Organization for Economic Cooperation and Development (OECD) countries and 2 million bpd from non-OECD countries.

The world oil body raised its oil demand growth forecast for 2023 by 100,000 bpd, to 2.3 million bpd. The new report is contained in its latest edition of the Monthly Oil Market Report.

However, the organization did not make significant changes to its 2022 overall world oil demand growth forecast, although it made downward OECD demand adjustments, and upward non-OECD demand adjustments, largely on the back of “improvements in economic activity in some countries and a slight recovery in oil demand in China after the lifting of its zero-Covid-19 policy.

OPEC did not make any changes to the 2022 demand for OPEC crude oil either, which remains at 28.6 million bpd—around 500,000 bpd higher than in 2021.

Also Read: OPEC+ May Not Respond To Russia’s Production Cut Plan

But for this year, OPEC revised up its demand outlook for OPEC crude oil by 200,000 from its previous forecast, to 29.4 million bpd—800,000 bpd higher than last year.

Global oil demand for last year is estimated to have grown by 2.5 million bpd, according to the MOMR, on the back of growth from both OECD and non-OECD countries with the exception of China, which saw its oil demand fall as its net zero Covid-19 policies took hold.
For oil products, OPEC sees transportation fuels as the main drivers of oil demand, with gasoline and diesel consumption forecast to increase 1.1 million bpd year over year—well above pre-pandemic levels. Jet fuel demand is also expected to rise 1.1 million bpd year over year as travel recovers.

According to OPEC, the “key” to oil demand growth this year will be the return of China from its Covid-19 economic slumber. OPEC also delicately mentioned “geopolitical tensions” as a 2023 “global economic concern” that could impact the demand for crude oil and crude oil products.

By Bosco Agba

Banks Linked To Russia To Suffer Sanctions

Orient Energy Review

16th February 2023

…As EU Say Russia Must Rebuild Ukraine

The United States is introducing punishments for banks with ties to Russia to ensure that they do not escape ongoing Western sanctions.
Head of the U.S. state department’s office of sanctions coordination, James O’Brien, was quoted by Reuters yesterday saying the Jo Biden administration is looking at additional banks and financial institutions to see how Russia deals with the outside world.
“It is very possible that there will be more action,” O’Brien told Reuters.

Shortly after the Russian invasion of Ukraine last year, the U.S. and the European Union sanctioned some of Russia’s biggest banks, froze billions of dollars worth of assets of the Russian central bank in Western countries, and cut much of Russia’s banking system from the global SWIFT system for payments.

However, Gazprombank, the bank of gas giant Gazprom, was spared from sanctions due to the handling of payments for energy imports into the EU. Some EU states, including Hungary and Italy, still receive Russian gas via pipeline.

The G7 and their EU allies are now considering a tenth package of sanctions, aiming to present it by February 24, the anniversary of the Russian invasion of Ukraine.

Also Read: Russia Turns Its Oil Flows To Asia As New EU Sanctions Kick In

Commenting on possible new measures from the West, the US official said. “We are now looking at how sanctions, including financial sanctions, can be most effective.”

“We are always looking to see which companies and parties could benefit from financial transactions linked to Russia,” he added.
Also yesterday, Bloomberg reported that the EU is looking to force banks to report the Russian assets frozen in the EU. The news agency actually said it saw draft proposals of the tenth package of sanctions it had seen.

The mandatory reporting of frozen Russian assets in the EU could be a step toward considering channeling some of the funds to Ukraine’s reconstruction.

Earlier this month European Commission President Ursula von der Leyen said in Kyiv Russia will be made to pay for the damages it caused in Ukraine, and will have to contribute to the reconstruction of Ukraine.

“Therefore, we are exploring with our partners how to use Russia’s public assets to the benefit of Ukraine,” she said

By Ken Okafor

AfCFTA Presents Collaborative Local Content Strategy For Africa – NCDMB Boss

Orient Energy Review

16th February 2023

Executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Simbi Wabote has said that the African Continental Free Trade Agreement (AfCFTA) contains the window and legal framework that can be leveraged to achieve the collaborative local content strategy in Africa.

Speaking at the ongoing 7th edition of the Sub Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Wabote said industry stakeholders must be ready to explore ways to maximize the opportunities in the African oil and gas industry.

Highlighting on the conference theme, “Sub-Saharan Africa Local Content Collaboration Strategies,” the NCDMB boss explained that the main objectives of the strategy are to explore ways to break down barriers, promote cross-border collaboration amongst governments and businesses, provide peer review mechanisms, and share experiences and ideas on industry sustainability and growth.

Wabote, said for the strategy to work, there is need to address, legal framework, funding, infrastructure, human capacity development, and research and development.

According to him, the advent of AfCFTA created the world’s largest free trade area by integrating 1.3 billion people across 54 African countries, with the objective of tapping into a combined Gross Domestic Product (GDP) of over 3 trillion dollars.

According to him, there is collaboration platform that will present gains to the entire African continent and it is in recognition of the opportunities that AfCFTA presents that Nigeria has started working towards unleashing the collaboration potentials.

He recognised the AfCFTA as the practice of local content on the continental level and commended the foresight of the League of African Leaders who adopted AfCFTA in 2012 at the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia.

Speaking on investment in infrastructure, he said that had a significant impact on the economic growth of any nation.
Wabote cited a study carried out in the year 2020 by GI Hub found that the economic multiplier for public investment, including infrastructure, was one and a half times greater than the initial investment in two to five years.

For instance, he said that the Dangote Integrated Refinery and Petrochemical Company – with an installed capacity of 650,000 barrels per day (bpd) which is expected to come on stream within the year will afford Nigeria and other African countries the partnership opportunities for sourcing petroleum products and fertilizer.

Also, the recently commissioned Lekki Free Zone and facilities like the SHI-MCI FPSO Fabrication/ Integration in Lagos equally presents opportunities for collaboration for the construction of FPSO and other offshore oil and gas facilities.

“These infrastructures and others that exist in various parts of the African continent provide massive opportunities for cross-border energy collaboration among African countries.

“Similarly, infrastructure like the West Africa Gas Pipeline (WAGP) and the ongoing AKK gas transmission infrastructure provides a means for serving regional and African markets.

“The developmental strategies to start from a cluster within a country and grow organically across borders continue to work well in the provision of roads, gas pipelines, fiber-optic cables, railways, and other infrastructure across the continent,” the executive secretary noted.
He told participants at the event that the Board was developing across seven locations in Nigeria adding that “this represents one of the ways it is providing infrastructure for the manufacturing of components to serve local and regional markets in a collaborative way”.

He said, “We are on track to complete major construction works at the sites by end of this year. Let me use this opportunity to invite interested businesses and investors in the area of manufacturing in any of these industrial parks to contact the Board for allocation of plots for development.”

PETAN Set To Launch Regional Local Content e-Portal

Orient Energy Review

16th February 2023

…Advocates for Regional Collaboration to Sustain African Energy Market

Chairman of Petroleum Technology Association of Nigeria (PETAN), Nicolas Odinuwe, has informed that his organization is planning a local content business e-platform to be launched by 3rd quarter of this year

The proposed e-platform will facilitate a one stop collation of available opportunities, capacities and capabilities within the sub-Sahara Africa region, PETAN said.

The Association’s chairman, who spoke at the ongoing 7th edition of the Sub Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, explained that the platform is currently being developed by the local content associations.
The PETAN boss said that with AFCFTA, African Union should consider a unified/ integrated African certification/standard as practiced in America, European Union and Britain.

According to Odinuwe, part of the ways to harness and sustain the sub-Sahara energy market is to continue reaching out to other regions and bodies for partnerships/collaboration and Support.

Also Read: NCDMB Boss Commissions PETAN Ultra Modern Secretariat In Port Harcourt

“Integrated one -skill passport for welding and related practices with TWF, African local content funding (coordinated by NCDMB), PETAN Seal of quality (PSQ) launched few years ago is being expand to be industry inclusive in partnership with NCDMB and relevant stakeholders” he said

According to him, PETAN’s collaborations have also extended to Uganda, Mozambique, Tanzania, Senegal, Ghana, Angola, and Guyana. He said industry players and regulators should aspire to eliminate multiple certifications domiciled outside and are associated with huge foreign exchange impact.

“These institutions outside Africa (supported by their governments) have made our respective standardization agencies confined to just names. The TWF personnel certifications/skill passport is a step in the right direction” he said.

“Human Capacity Development is very fundamental in the growth of any economy and local content. As technology is evolving, it is important to constantly acquire new knowledge and skills through training and retraining.

“The theme for this 7th edition has been deliberately chosen and is relevant as the global energy market is at a critical point and for hydrocarbon rich countries in sub-Sahara Africa to drive home that need for AFCTA / African local content framework full implementation -considering the threat of funding squeeze by non-African donor agencies and the move to confine our hydrocarbon to museum.

Also Read: Guinea Delegation Visits NCDMB To Understudy Local Content Management

“Remember, our efforts to achieve energy security and energy affordability, will continual be undermined if we do nothing. As we look to the future, we face significant challenges in the ways energy is produced and consumed, including the effects of geopolitical instability, poverty and energy poverty, economic uncertainties, and the climate songs.

“As private sector & service companies, we must continually commit to finding collaborative innovative solutions and work with our stakeholders and partners to ensure a sustainable and secure energy solutions & supply.

“SAIPEC continues to place its emphasis on the future of the energy, oil, and gas industry through Sub Saharan Africa with collaboration at the forefront of its objective and local content at its nucleus. Today our requirements for energy are immense and increasing.

“There are new issues and opportunities across the globe especially as it affects the oil and gas industry. We need to chart a way forward on energy availability, energy security, energy sustainability and affordability within the continent,” the PETAN boss said

NNPC Estimates Energy Demand In Africa To Increase By 35% In 20yrs

OrientEnergyReview

16th February 2023

The Nigerian National Petroleum Company [NNPC] Limited has made an estimate that energy demand in Africa would hover between 30 to 35% in the next 20 years.

Speaking at the seventh edition of Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos early this week, NNPC group managing director, Mr. Malam Mele Kyari, said the increase will support the projected increase in population and industrialization.

The conference was organised by the Petroleum Technology Association of Nigeria (PETAN) with the theme, “Harnessing a Sustainable African Energy Industry through Partnerships”.

Kyari, who was represented by execute vice president, NNPC, Upstream, Mr Adokiye Tombomieye, said that the coming of the conference is timely, having come at a time when the Nigerian oil and gas industry was experiencing a significant transformation, following the passage of the Petroleum Industry Act (PIA 2021).

Also Read: NNPC Ends 24-year PSC Contract With Addax Petroleum

Kyari said the need for partnership was more reinforced as more African countries continue to make hydrocarbon discoveries.
”We should collaborate and share knowledge and help each other in critical areas, including technology, exploration and production, research and development, technical expertise and human capacity development to spread the wealth within the continent.
“This would in no small measure assist in achieving energy independence and also aid the transition to cleaner energy sources such as gas to sustain the region.

“This presents an enormous opportunity for us to form partnerships across the continent and build a sustainable future,” he said.
According to him, the Act had provided role clarity in governance, rule-based administration, attractive and flexible fiscal terms and direct benefits for the host communities.

According to him, all these are targeted at creating enablers for investor confidence in the Nigerian oil and gas sector, where ample opportunities exist.

“Ironically, our restructuring is happening at a time when the Energy transition discussion is gaining momentum, and major fund providers for petroleum upstream investment are now activists and anti-fossil fuel.

Also Read: NNPC Issues Timeline For Completion Of 14 Oil Wells in 2023

”As I have always canvassed, decreasing investments in hydrocarbon ventures cannot guarantee global energy security in the near future.
“Rather, an inclusive policy that guarantees access to finance and low-carbon technologies are key to sustaining global energy security and equitable growth,” he added.

He said that Nigeria needs to capitalize on the advancements made in the industry to meet its energy demand, being geographically situated in the sub-African region and as a leader in the oil and gas industry in sub-Saharan Africa.
Kyari said the country also needs to guarantee energy supply, expand its economies and overall, build a sustainable future for millions of people beyond its shores.

“At NNPC Limited, we understand the importance of partnerships in achieving a sustainable energy industry in Africa.
“This is why we have been working closely with countries, companies and other stakeholders to develop innovative solutions that meet the energy needs of the continent.

“We must acknowledge that this new era of automation and artificial intelligence is focused on the application of cutting-edge technologies.
“Such as the use of robotic drilling systems for unmanned operations, the deployment of cognitive computing in upstream operations, super specialized sensors for real-time monitoring and maximization of reservoir yields,” the GCEO explained.

Drilling Superintendent at Hobark International Limited (HIL)

Orient Energy Review

14th February 2023

Hobark International Limited is the parent company of the Hobark group operating in the oil and gas industry. The company was incorporated in 1998, starting as a staffing agency based in Port Harcourt. Currently we have offices in 4 countries with our head office in Lagos.

Job Type: Full Time
Experience: 15 years
Location: Delta
Application Deadline: Not Specified

Description

Coordinate all day-to-day onsite drilling operations including management of drilling contractor, asset scheduling, oversee cost estimates and project timelines and ensuring daily reports are collated according to established reporting timelines.
Supervise and provide leadership to the drilling team and focus on optimizing drilling operations and resources while ensuring adherence to safety procedures throughout the program.

Requirements

15 years drilling experience in managing drilling operations in both land and offshore drilling locations with strong commitment to QHSE.
Must have broad knowledge of directional drilling techniques and equipment with hands-on experience drilling directional wells.

Method of Application

Interested and qualified? Go to Hobark International Limited (HIL) on www.hobarkintl.com to apply

Renewable Energy Infrastructure Will Take Decades To Develop, Experts Say

Orient Energy Review

14th February 2023

Oil and gas companies should be part of the discussion on climate change, according to panelists at the World Government Summit
The world needs “short-term” solutions as the infrastructure for renewable energy will take decades to develop, industry experts have said.
“We don’t have the infrastructure that really makes it possible for renewables to grow at the speed and scale that is needed,” Francesco La Camera, director general of the Abu Dhabi-based International Renewable Energy Agency (Irena), said during a panel discussion at the World Government Summit.

“We are talking about physical infrastructure, the legal and policy infrastructure [as well as] the professional skills.”
The war in Ukraine has triggered a global energy crisis, marked by a shortage of fuel supplies and volatile prices.
Countries in Europe and elsewhere are now racing to develop renewable and natural gas projects as they seek to reduce their reliance on Russian fossil fuel exports.

“We’re talking about the biggest investment programme ever in the energy industry, which is used to developing projects over decades,” Siemens Energy chief executive Christian Bruch told the panel.

Investment in low-carbon projects is expected to increase by $60 billion this year, 10 per cent higher than 2022, led by developments in the wind sector, as well as a “significant” rise in funding for hydrogen and carbon capture, according to Rystad Energy, a Norway-based energy consultancy.

Also Read: African Countries Should Embrace Renewable Energy – Experts

About $131 trillion will have to be spent by 2050 to achieve a low-carbon energy transition that will limit global temperature rises to manageable levels, Irena said.

Mohamed Al Ramahi, chief executive of Abu Dhabi clean energy company Masdar, said the Ukraine war, which disrupted energy markets and global trade flows, had created new opportunities in the renewables sector.

The current crisis has “accelerated” the rate at which renewable energy permits are being issued in Europe, he said.
“Before the war, this was literally impossible … I see these challenges creating humongous opportunities,” Mr Al Ramahi said.
Last year, EU energy ministers agreed to outline a temporary framework to hasten the granting of permits and the development of renewable energy projects.Masdar, which has Adnoc, Taqa and M

ubadala Investment Company as its stakeholders, aims to grow its renewable energy capacity to at least 100 gigawatts by 2030 while boosting its green hydrogen production to one million tonnes over the next decade.

“Is it sufficient enough? And the simple answer to that is definitely not. We need 10 times our target capacity on an annual basis for the next decade [to meet global net-zero goals]” said Mr Al Ramahi.

Also Read: Europe Deploys €792bn To Protect Citizens Against Energy Crisis

However, the global energy transition is a “long and bumpy journey”, he said.
Oil and gas companies, which reported record profits last year on the back of higher energy prices, should be a part of the discussion on climate change, panelists said.

The global oil and gas industry’s income jumped to about $4 trillion in 2022, from its recent average of $1.5 trillion, according to the International Energy Agency.

“Without that money, there won’t be a transition because where’s the money going to come from?” said Marco Dunand, chief executive of commodities trader Mercuria.

He also highlighted the need for more investment in new oil and gas projects after spending in the sector fell to historic lows during the Covid-19 pandemic.

“If you want to be in line with the Paris Agreement, you should be producing worldwide about 70 million barrels per day, but the demand [is expected] to be closer to 100 million bpd,” said Mr Dunand.

Also Read: G7 EU Nations Oppose ‘Radical’ Changes To The Bloc’s Energy Market

“There is no investment because there’s so much uncertainty about the transition.”
The Cop28 summit — set to be held in the UAE this year — will offer a chance to take stock of the enforcement of the Paris Agreement.
“There will be differences between countries during the stock-take [and] Cop28 should say how we can close the gap,” said Mr La Camera.

The National

G7 EU Nations Oppose ‘Radical’ Changes To The Bloc’s Energy Market

Orient Energy Review

14th February 2023

A group of seven EU member states have called on the European Commission [EU] to apply breaks in the proposed major overhaul in the EU energy and power market systems.

The group of countries, Denmark, Germany, the Netherlands, Estonia, Finland, Luxembourg, and Latvia have cited concerns that “crisis mode” changes could weaken the single market and deter investments in renewable in the region.

“Any reform going beyond targeted adjustments to the existing framework should be underpinned by an in-depth impact assessment and should not be adopted in crisis mode,” the countries wrote in a letter to the European Commission.

Also Read: Europe Deploys €792bn To Protect Citizens Against Energy Crisis

Last month, the EU launched a public consultation on the reform of the region’s electricity market design with the aim “to better protect consumers from excessive price volatility, support their access to secure energy from clean sources, and make the market more resilient.”
The seven EU member states opposing “crisis mode” legislation for the long term argue that the system and the EU market need to continue to incentivize investment in renewables, which the bloc considers crucial for reducing dependence on imported fossil fuels and their impact on energy bills.

The listed countries argue further that the idea of extending a temporary windfall tax on non-gas generators could undermine investments in renewable.

Electricity industry group Eurelectric has also voiced concerns over rushed crisis interventions that could have long-term implications on the EU market.

Also Read: US Vulnerable Energy Infrastructure Threat To National Security

“Radical design changes in the midst of a crisis would be detrimental in the long run. Potentially for security of supply, and most definitely for investor confidence, a poorly designed reform could cause a multi-year slump at a time where investments are needed more than ever.
“Therefore, we suggest to make targeted additions to the current market design,” Eurelectric said in December in a letter to the European Council on energy supply and prices in Europe.

“It is of paramount importance to distinguish between emergency measures and a structural reform of the market.”

By Ken Okoye

Europe Deploys €792bn To Protect Citizens Against Energy Crisis

Chibisi Ohakah

14th February 2023

Reports said yesterday that European countries many have deployed over £700billion (€792billion) to shield businesses and households in the region from soaring gas prices since the start of the energy crisis.

According to the latest research from Bruegel think tank since September 2021, it is calculated that the EU has now earmarked or spent €681billion in energy crisis spending, while the UK has allocated €103billion and Norway just over €8billion.

The report said Germany is by far the biggest spender, splashing out nearly €270billion within the period in review.
The figures mark a sharp increase since the last report three months ago when Bruegel calculated a €706billion total, as countries grappled with a challenging winter with Russia cutting off gas supplies to Europe last year.

Also Read: Europe Deploys €792bn To Protect Citizens Against Energy Crisis

Russia reduced flows significantly from the Nord Stream 1 pipeline and halted flows into multiple countries. Bruegel urged governments to shift towards more targeted support, prioritizing lower income levels as countries start running out of fiscal space to maintain such broad funding.

Funding has chiefly focused on non-targeted measures such as VAT cuts on petrol or retail power price caps. However, the think-tank argued that dynamic needed to change over the coming months.

Bruegel is the European think tank that specializes in economics. Its mission is to improve the quality of economic policy with open and fact-based research, analysis and debate.

Also Read: African Countries Should Embrace Renewable Energy – Experts

Bruegel’s membership includes EU Member State governments, international corporations and institutions. Through publications, events, social media, podcast, and a lively blog, Bruegel has carved a unique discussion space for everyone interested in improving the quality of economic policy, and features highly in several Think Tank awards and rankings.

Through a dual focus on analysis and impact, and dynamic relationships with policymakers at every governance level, it has also established itself as a vibrant laboratory for economic policies.

Control Field Specialist -Turbo Machinery and Process Solutions at Baker Hughes

Orient Energy Review

13th February 2023

Baker Hughes is one of the world’s largest oilfield services companies. It operates in over 90 countries, providing the oil and gas industry with products and services for drilling, formation evaluation, completion, production and reservoir consulting.

Job Type: Full Time
Qualification: BA/BSc/HND
Experience: 5 years
Location: Rivers
City: Port Harcourt
Application Deadline: Not Specified

As a Control Field Specialist -Turbo Machinery and Process Solutions, you will be responsible for:

Providing direction and assistance to work groups to meet assigned objectives
Coordinating and overseeing work at the field site, providing quality service to the customer.
Collaborating with others crew members to the Installation and/or Maintenance activities of Customer Equipment in the Field at Customer Sites.
Executing all required responsibilities safely and as instructed by direct supervisors and following all TPS Service applicable processes and procedures.
Providing all required records of all activities accomplished at Customer Site to the Baker Hughes TPS Supervisor and promotes and maintains good team relations.
Making recommendations on findings, reviewing effectiveness of maintenance actions to identify future needs
Overseeing, overhaul, troubleshooting, commissioning, and start-up of rotating equipment (BH TPS portfolio products) at customer sites
Coordinating the cleanup, repair, and preparation of equipment for the next job.
Conducting all business activities in accordance with Baker Hughes Core Values (HSE, Quality and Compliance).

Fuel your passion

To be successful in this role you must:

Have a bachelor’s degree in electrical engineering, Electronics Engineering, Computer Engineering, or related field is preferred.
Have a minimum of 5 years’ experience in Turbomachinery Controls system and field instrumentation.
Have experience working on Turbomachinery equipment – Heavy Duty Gas Turbine, Aeroderivative Gas Turbines, Centrifugal compressors, etc
Be capable of working independently as a Field Instrumentation specialist – self-starter.
Have working experience on at least two of the following BH control systems – MKV, MKVI, MKVIe, Rx3i, GE Fanuc.
Be willing to travel for work up to 70% of the time.
Specialized in Instrumentation and Control Panels.
Have good Functional / Technical, Customer Focus, Communication, Interpersonal, and Team working skills.

Work in a way that works for you.

We recognize that everyone is different and that the way in which people want to work and deliver at their best is different for everyone too. In this role, we can offer the following flexible working patterns:

Standard working schedule supporting the client’s needs.

Method of Application

Interested and qualified? Go to Baker Hughes on careers.bakerhughes.com to apply

African Countries Should Embrace Renewable Energy – Experts

Orient Energy Review

13th February 2023

Experts have advocated that African countries should embrace the abundant renewable energy resources which are described among the best in the world.

They noted that generating renewable energy creates far lower emissions than burning fossil fuels, as such there is urgent need to accelerate transition from fossil fuels, which currently account for the lion’s share of emissions, to renewable energy as key to addressing the climate crisis.

IREANA in a write up noted that Africa has vast resource potential in wind, solar, hydro, and geothermal energy and falling costs are increasingly bringing renewables within reach. Central and Southern Africa have abundant mineral resources essential to the production of electric batteries, wind turbines, and other low-carbon technologies

According to IRENA, decisions made today will shape the continent’s energy sector for decades.
The experts call comes against background of the report by energy think tank Ember’s European Electricity Review which stated that Wind and solar produced a record fifth (22%) of EU electricity in 2022, overtaking for the first time fossil gas (20%).
The key findings in the European Electricity Review said Europe’s use of coal is now falling – and it’s not coming back and that countries remain as committed to phasing out coal as they were before the crisis.

The report noted that record growth in renewables is only just starting: For the first time, wind and solar reached a fifth of EU electricity in 2022 . It said Solar generation rose the fastest, growing by a record 39 TWh (+24 per cent) in 2022—almost twice its previous record—which helped to avoid €10 billion in gas costs.

Also Read: US Vulnerable Energy Infrastructure Threat To National Security

A cheering news from the Ember report estimates that fossil generation could plummet by 20% in 2023, double the previous record from 2020. Coal generation will fall, and gas generation, which is expected to remain more expensive than coal until at least 2025, will fall the fastest.

Wangari Muchiri, Global Wind Energy Council – Africa Director reacting to the Ember news said one of the lessons African countries can learn from this is to embrace our abundant renewable energy resources which are some of the best in the world.
Similarly, James Mwangi, Chief Executive Officer of Africa Climate Ventures, and Founder of the Climate Action Platform – Africa described the report on Europe as both encouraging and a warning for Africa.

He said Its data underlines the risk that Africa faces of ending up with stranded assets in terms of large investments in fossil fuels energy infrastructure, at a time when Africa also has a huge abundance of untapped renewable energy potential.

“It makes little to no sense for Africa to spend large amounts of its limited investment capital on a fading technology that will inevitably need to be written off in the near future and is already losing ground to renewables even in Europe. Renewables have a much-extended lifespan and more attractive long-term economics. The $133 billion every year needed by Africa in clean energy investment is what this continent needs.”

Also Read: Optimization Of National Grid Critical To Energy Sustainability

Expressing mixed feelings over the report, Nnimmo Bassey, Director, Health of Mother Earth Foundation (HOMEF). He said the authors are enthusiastic that the attainment of net zero in the 2030s by Europe will make the 1.5C targets attainable. He noted that reality is that many contributory factors to the rise of greenhouse gases in the atmosphere are still not seriously tackled and there is no real resolve to keep fossils in the ground.

“Moreover the 1.5C target already spells trouble for Africa and Small Island States,” Bassey added.

Leadership

OPEC Targets $12.1trln Investment Until 2045 – Sec General

Chibisi Ohakah

13th February 2023

…expects global oil demand to cross pre-pandemic levels in 2023

Secretary-general of OPEC, Mr. Haitham Al Ghais, has said that the global oil body is looking at an investment of $12.1 trillion to be made until 2045 to ensure stability in global energy markets.

Speaking yesterday at the Egypt Petroleum Show, in Cairo, the OPEC scribe said the cartel expects global oil demand to exceed pre-pandemic levels in 2023, amid an improving economic outlook in top crude importer China.

Mr Ghais forecast that oil demand is expected to reach record levels this year after China, the world’s second-largest economy, lifted pandemic curbs following strict adherence to a zero-Covid policy for nearly three years.

China is forecast to expand 5.2% this year after beating expectations with a 3% acceleration in 2022, according to the International Monetary Fund.

Also Read: OPEC+ May Not Respond To Russia’s Production Cut Plan

Brent, the benchmark for two thirds of the world’s oil, surged to $90 a barrel last month on hopes of a swift fuel demand rebound in China.
However, rising oil stocks in the US and expectations of further interest rate increases have weighed on crude futures in recent weeks.
Brent, which soared to nearly $140 a barrel following Russia’s invasion of Ukraine last year, closed trading on Friday at $86.39.

The International Energy Agency has said China will account for nearly half of its 2023 oil demand growth forecast of 1.9 million barrels per day.

China’s recovery and sanctions on Russian oil exports are expected to tighten global crude supplies in the second half of the year, analysts said.

At its meeting this month, the OPEC+ alliance of 23 oil-producing countries agreed to roll over existing output cuts of 2 million bpd.
A 1.1 million bpd rise in China demand this year could push oil markets back into a supply deficit in June and lead OPEC+ to reverse its production cuts, Goldman Sachs said in a research note last week.

Also Read: Putin, Saudi Prince Discuss Strategy Ahead Of Wednesday OPEC+ Meeting

“If Russia production were to stay flat, then Brent would likely only rise to $95 per barrel by December because steady OPEC production would only partly undo the bearish effects from higher supply and less elevated long-term costs,” Goldman Sachs said.

OPEC+ May Not Respond To Russia’s Production Cut Plan

Orient Energy Review

13th February 2023

OPEC+ has said that it is not willing to respond and change its oil production targets after Russia announced a cut in its output for March, two delegates from the OPEC+ alliance told Reuters last weekend

Russian deputy prime minister, Alexander Novak, had said that Russia, a member of OPEC+, would cut its oil production by 500,000 barrels per day (bpd) in March, as a result of the Western sanctions and the price cap on Russian crude oil.

Reports say the announcement from Russia had sent oil prices up by 2% early on Friday and on course for what observers say will turn out to a significant gain for the week.

“As of today, we are fully selling the entire volume of oil produced, however, as stated earlier, we will not sell oil to those who directly or indirectly adhere to the principles of the ‘price cap’,” Novak said, as carried by Reuters.

Also Read: Russia Turns Its Oil Flows To Asia As New EU Sanctions Kick In

The Russian official added that Russia would “voluntarily reduce production by 500,000 barrels per day in March.”
It is suggested that Russia may have discussed its plan to cut production with some members of the OPEC+ alliance, in which Russia is a key member leading the group of non-OPEC producers.

Russia, however, had not formally consulted with OPEC+ on its plans before announcing the decision, a Russian government source has told Reuters.

Last week, OPEC+ kept its production targets unchanged in a widely expected ‘wait-and-see’ approach to supply just ahead of the EU ban on Russian diesel and other petroleum products.

Also Read: EU Embargoes Russian Oil Products As New Sanctions Set In

Supply from Russia, demand in China, the state of the economies in the coming months, and the trend in interest rate hikes in the U.S. and other major mature economies will be the key decision drivers for OPEC+ this year.

As will be the price of oil on the markets—the group led by Saudi Arabia and Russia is unlikely to leave oil trading below $80 per barrel.

By Ken Okoye

US Vulnerable Energy Infrastructure Threat To National Security

Chibisi Ohakah

13th February 2023

A report has said that the U.S. must consider improving its cybersecurity to ensure it is resilient to being hacked, as threats against the grid continue to rise.

Cyber security and energy infrastructure robustness in the US are being called into question, given recent news reports that attacks on U.S. power grids rose to an all-time high last year.

A Government Accountability Office (GAO) review conducted in 2019 revealed some of the main challenges to grid security. It also spoke of strengthening energy infrastructure in line with green transition developments and the increased connectivity of renewable energy operations.

These included the need to hire a skilled workforce to manage cybersecurity, limiting the sharing of classified information between the public and private sectors, resource limitations, reliance on other critical infrastructure that requires cybersecurity strengthening, and uncertainty about how to best implement cybersecurity standards.

Further, the report suggested that although the Department of Energy (DoE) had developed plans “to implement the national cybersecurity strategy for the grid”, these plans “do not fully address risks to the grid’s distribution systems.”
For example, the supply chain-related vulnerabilities of distribution are largely overlooked as the DoE focuses on resolving threats to the grid’s production and transmission systems.

Greater digitalization in recent years has put the grid at higher risk of attack by criminals, terrorists, hacktivists, and foreign governments. The electric grid relies on industrial control systems, which manage electrical processes and physical functions like opening and closing circuit breakers.

Also Read: Two Neo-Nazis Charged With Plan To Attack U.S. Energy Grid

Since many systems are now using technologies that connect to the internet – to improve remote monitoring, thereby reducing cost and boosting efficiency – this makes them more vulnerable to hacking.

The GAO believes the DoE can enhance cybersecurity by focusing on three key tasks: the adoption of a cybersecurity framework, the establishment of risk management programmes, and the implementation of the Federal cybersecurity strategy for the electric grid, which includes the comprehensive assessment of the grid’s cybersecurity risks.

The U.S. Secretary of Energy, Jennifer Granholm, warned last year that despite mandatory security requirements being followed and high levels of redundancy being built into the country’s power system, it was still possible for a sophisticated hacker to crash the grid.
Experts see that hackers are getting smarter, and the range of threats broader. While some are threatening the system to gather data and make money from intellectual property, others are approaching it from the standpoint of sabotage.

While some attacks are internal, hacking groups in Russia, China, Iran, and North Korea all have high levels of sophistication and pose a threat to U.S. power.

But the U.S. has been preparing for such an attack. The Pentagon’s Defense Advanced Research Projects Agency (Darpa) has played out a scenario five times in the last three years where they hack the system as cybersecurity experts and utility operators fight to bring it back online. This has helped utilities to understand some of the cyber threats and how best to respond.

These types of drills have been being led by Darpa since 2015, under the $118 million project Rapid Attack Detection, Isolation and Characterisation Systems (Radics).

Last year, the DoE announced $45 million in funding to test technology to “protect our electric grid from cyber-attacks.” And the 2021 bipartisan infrastructure bill provides billions of dollars in financing for cybersecurity, including the $100 million Cyber Response and Recovery Fund.

However, hacking groups suggest that taking down the grid is still too easy and poses a major threat to national security. A group of white hat hackers – aka ethical security hackers that run hypothetical scenarios – won $40,000 for cracking a system that is widely used by industrial companies, including those that run the U.S. power grid.

Also Read: UK Extends New Energy Saving Incentives

This revealed continued weaknesses in the system which could lead to hackers threatening the system for ransoms or political motivations. Jen Easterly, director of the U.S. Cybersecurity and Infrastructure Security Agency stated, “As the destruction or corruption of these control systems could cause grave harm, ensuring their security and resilience must be a collective effort that taps into the innovation, expertise, and ingenuity of the [industrial control systems] community.”

But the winning hackers warned that the grid is highly vulnerable, with the team requiring “just a couple of days” to hack the industrial control system. Dutch researchers from the team, Daan Keuper and Thijs Alkemade, explained “In industrial control systems, there is still so much low-hanging fruit,” adding “The security is lagging behind badly.”

The U.S. will keep running these types of competitions to reveal weaknesses in the system and address them before external hackers have the chance to attack. But this does not comprehensively address the issue of poor cybersecurity in U.S. energy infrastructure, offering a reactive rather than a preventative approach to the challenge.

As cyber threats to the U.S. electric grid continue to rise, the government must do more to strengthen its energy infrastructure to threats as it undergoes greater digitalization. Despite providing large amounts of funding to fix this challenge, significant weaknesses remain, suggesting the need for a comprehensive cybersecurity strategy to be implemented at the national level, as well as the establishment of a cybersecurity standards agency to oversee the implementation of national guidelines across the sector.

Sanctions: Russian Oil Price Cap Hitting Target – G7

Orient Energy Review

13th February 2023

The G7 price cap coalition against Russia has announced authoritatively that the mechanism is still meeting the objectives over which it was put together.

An unnamed official of the Coalition told Reuters last weekend that any Russian production cuts that may be forthcoming will disproportionately hurt developing countries.

Russia had jolted the global oil circuit with the announcement earlier in the day of a 500,000 bpd crude oil production cut – crude oil production, not crude oil and condensate production.

The announcement was preceded with a warning from Russia’s Deputy Prime Minister, Alexander Novak, that, there was a risk of reduced crude oil production yet this year directly as a result of the EU import bans and the G7 price caps on its crude oil and crude oil products.
The G7 official cautioned, however, against the veracity of Russia’s reports of oil production cuts.

Also Read: The Price Of Russia’s Flagship Oil Will Now Be Set By Asia

Up until this week, it had been widely reported that Russia’s crude oil production and exports were holding fast in the fact of the bans and price caps, with the Russian Ministry reporting 9.8-9.9 million bpd last month – a close match to November and December figures despite the new measures designed to punish Russia for its military operations in Ukraine.

The discount for Russian Urals crude oil has dropped to $30 per barrel below the international Brent crude oil benchmark, with Russia’s budget sinking into a deficit in January. An oil production cut on behalf of Russia could boost the Brent benchmark, inadvertently boosting Urals pricing too.

Russia said that it had held discussions with some OPEC+ members regarding its decision to cut oil production, but two OPEC+ delegates told Reuters that OPEC+ had no plans to cut production.

So far, Russia has been able to find willing buyers in the Asian market for its crude oil, largely in defiance of Western sanctions.

By Kene Okafor

Putin Has Lost The Energy War

Orient Energy Review

13th February 2023

A frontline, global energy trader, Pierre Andurand, has said that Russia is losing the gas war as Europe seems to have moved past the worst of the power crisis.

Andurand told the Financial Times [FT] that that Russian President Vladimir Putin failed to achieve his objectives – whereas Europe has indeed found alternate natural gas supplies, with European benchmark natural gas prices now high, but well below the 300 euro per MW hour price that it achieved in August.

“I think Putin lost the energy war,” Andurand told the FT, adding that there was “no more fear of an energy crisis.”
“Now that Europe is getting used to living without Russian gas, why would they ever go back?” He described Putin’s decision to cut off gas supply to Europe as costly mistake. The singular move made Russia’s former customers to look elsewhere, he stressed.

Also Read: The Price Of Russia’s Flagship Oil Will Now Be Set By Asia

According to FT, Andurand Capital’s Commodities Discretionary Enhanced fund gained 650% from the start of 2020 to the end of 2022. For 2023, it is down 3% so far, with Andruand calling the end to the power crisis.

Now, Andurand sees the possibility for big moves in crude oil. The prices for crude oil, Andurand explains, have fallen too far in recent months, and could rally when China’s economy rebounds as it backs away from its zero-covid policies. Crude prices could even hit $140 per barrel later this year, Andurand said.

“The reopening of China is going to lead to a lot more oil demand growth than expected,” Andurand said, adding that it could take a couple of months for the market “to recognize the scale of the demand increase we’re seeing.”

By Bosco Agba

Nigeria Could Become Africa’s Biggest Oil Refiner By 2025 – Report

Orient Energy Review

13th February 2023

Nigeria is the market to watch this year not only because of the opening of the Dangote refinery but because of its upcoming change of administration, an expert said.

Nigeria has the potential to become Africa’s biggest oil-refining hub by 2025, a report has said.
Hawilti, a Pan-African investment research firm, disclosed this in its recent report titled “Refineries watch Q4 2022” released on Monday.
The report said Africa is poised to witness significant transformations in its fuel supply security in 2023, adding that West Africa houses the largest refining capacity on the sub-continent, but only 23 per cent of it is currently operational.

For Nigeria, the report said that the prospect of a new private refinery becoming operational could help redefine the nation’s local refining capacity.

“Both the opening of the Dangote refinery and the rehabilitation of state-owned refineries have the potential to make Nigeria Africa’s biggest refining hub by 2025,” it said.

The report added that the market is also driven by private oil producers and asset developers who are building modular refineries next to oilfields in the Niger Delta.

Historically, it said crude theft throughout 2022 has provided additional incentives for field owners to develop refining facilities and monetize their oil themselves instead of injecting it into third-party export pipelines.

“2023 could see movement on several of them, including expansion plans at existing facilities,” it said.
According to the report, the long-awaited Dangote Refinery, a 650,000 bpd single-train crude refining facility that has been a decade in the making, is finally expected to start production this year. It added that its commissioning is already sending hopes that it could finally start rebalancing Nigeria’s trade deficit.

Also Read: Fuel Subsidy Removal In Nigeria Is A Big Opportunity To Switch To Solar Inverters In 2023 – Bome Ojoboh

“With all state-run refineries undergoing rehabilitation, Nigeria imports all its petroleum products, and heavily subsidizes gasoline. It needs the Dangote Refinery to decrease imports, generate currency savings, fight inflation, and ultimately improve its macroeconomic outlook.
“Africa’s biggest oil producer has also embarked on the rehabilitation of its three state-owned refineries in Port Harcourt, Warri, and Kaduna totaling some 445,000 bpd of refining capacity.

“Tecnimont continues to make progress on bringing Port Harcourt’s complex back to 90 per cent of its capacity while Daewoo E&C was selected in 2022 to execute two “quick fix” projects at both Warri and Kaduna,” it said.

Regional Outlook
Like many other African countries, the report said Ghana is currently faced with a worsening fiscal crisis as global oil prices put pressure on its finances.

It said Ghana is a net importer of petroleum products, just like most African markets, despite producing crude oil and housing refineries.
“With the prices of petroleum products reaching historic highs this year, the country is faced with an increasing import bill that puts pressure on its ability to meet budget requirements,” the report said.

It added that Ghana will also play its role in shaping the region’s outlook this year as it expects to finally re-open its 45,000 bpd Tema Oil Refinery.
“A Chinese developer is also commissioning a 40,000 bpd refinery this year, which will be the first phase of a much larger complex expected to reach 100,000 bpd by 2025 at a cost of $3bn,” it said.

Meanwhile, it said Southern Africa is also expected to see supply constraints easing this year.
“This will especially be the case in South Africa, where Astron Energy is in the process of re-opening the 100,000 bpd CALTEX Refinery after it was shut down in July 2020 following a deadly explosion,” the report noted.

However, most South African refineries are closed (Engen, Sapref, Mossel Bay) and the country’s refining outlook remains heavily uncertain, it said, adding that by 2025, Angola could have overtaken South Africa as the region’s biggest refiner based on existing and upcoming projects.

“Angola intends to leverage its future refining capacity to position itself as a regional supply hub, with several pipelines in discussions with its neighbours, including Zambia. Further north, a strategic investment decision is expected in Uganda where the 60,000 bpd Albert Graben Refinery needs to reach FID if it is to be commissioned on time to process domestic oil in 2025,” it said.

Speaking on the report, Mickael Vogel, director & head of research at Hawilti, said “Nigeria is the market to watch this year not only because of the opening of the Dangote refinery but because of its upcoming change of administration and the strategic decision that must be made on ending fuel subsidies.

Also Read: NUPRC to End Inaccurate Accounting for Nigeria’s Oil, Gas Production

“A politically courageous move to lift gasoline subsidies would have a profound impact on Nigeria’s economy and fuel supplies across the whole sub-region.”

Sustainability
However, the report said Africa must also put its downstream industry on the path of sustainability and ensure that existing and new facilities can meet increasingly stringent clean fuels requirements.

According to the report, this cannot be done without costly upgrades, many of which are deemed uneconomical by refiners.
It explained that the ability of African refineries to restructure their debt and raise fresh capital will dictate their future and their role in the African energy transition.

“Modular technology solutions are on the rise in Africa, and especially in Nigeria because they offer producers the opportunity to set up a refinery in approximately 13+ months from inception to start of refining.
Buhari inaugurates Nigeria’s ‘largest’ modular refinery

“Modular refineries also have a quick return on investment of approximately 2 years, enabling developers and their investors the ability to recoup their invested capital in a short period of time.

“In Nigeria, modular refineries also mitigate the risk of pipeline sabotage as these refineries become an evacuation system that is completely independent of pipelines,” Souheil Abboud, managing director of modular process equipment manufacturer VFuels LLC, said.

Premium Times