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Africa Needs Technological Expertise to Unlock Full Potential of Energy Resources—Ayuk

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Full Potential of Energy Resources Ayuk

By Kestér Kenn Klomegâh

The Russian Energy Week International Forum is a key global platform for discussing current trends in the development of the modern energy sector. This event is traditionally held at the highest level, featuring the participation of leaders from the largest companies in the energy industry. In 2023, the forum attracted over 3,000 participants from more than 80 foreign countries.

On the sidelines of the forum, the Executive Chairman of the South Africa-based African Energy Chamber, Mr NJ Ayuk, acknowledged in an exclusive interview that Africa is developing as the fastest-growing energy market in the world. That, however, substantial investment and infrastructure development are required to realize this market potential.

In this interview, NJ Ayuk further explained the necessary steps African countries are adopting to ensure sustainable energy development, how the activities of Russian companies fit into this context, as well as existing challenges and financial support measures for projects in the energy sector across Africa. Here are the excerpts of the discussion:

After participating in the Russian Energy Week in mid-October, what are your objective views (especially during the special Russia-Africa energy sessions) about exploring business and investment in the energy sector with Russia? 

There lies significant opportunities for both bilateral and multilateral cooperation between Russia and African countries. Russia represents the third largest oil producer worldwide and has effectively utilized its substantial gas reserves for the development of its economy. At the same time, the country is exploring renewable energy solutions and is looking at expanding its footprint in other markets worldwide.

With substantial expertise and resources in various energy domains, lessons learnt by Russia will be highly strategic for emerging oil and gas producers in Africa. And already, there is strong interest by both sides to foster strong ties and partnerships, evident during the Russian Energy Week this October. Russian companies such as Gazprom – which organized an event with the African Energy Chamber this year in South Africa – represent ‘global energy companies’, and as such are eager to play a greater role in investing and developing international markets. Gazprom has vast expertise is all segments of the value chain. The same can be said for Russia’s state-owned Rosatom. Africa represents both a strategic and highly attractive market in this regard. With over 125 billion barrels of proven oil reserves, 620 trillion cubic feet of natural gas and unparalleled solar, wind and hydro potential, the continent has all the ingredients to become a major global player.

What Africa needs to unlock the full potential of its energy resources is investment and technological expertise. Russia offers both. Now, what is left is for Africa to improve its business environment and prioritize engagement with its East European partner.

By the way, how do you estimate Russia’s engagement in the energy sector across Africa? What has been achieved over the past few years in Africa? 

Russia’s engagement with Africa has been gradually growing over the years and we see this predominantly in the energy sector. For years, there have been strong trade and cooperative ties with countries such as South Africa, Morocco, Egypt, Algeria and many more, primarily in the food, machinery and chemical product industries. However, energy cooperation has presented newfound opportunities for both Russia and the African continent. Changes in global supply-demand dynamics, coupled with energy transition impacts, have led to a new focus placed on the strategic Russia-Africa partnership.

In recent years, Russian companies have advanced their engagement with Africa, with several agreements signed across various segments of the value chain. While historical ties have been largely trade-based, these agreements showcase a commitment by the country to expand its technological expertise worldwide. In the nuclear industry, for example, Russia’s Rosatom has signed a wave of agreements with burgeoning nuclear power producers in Africa. These include memoranda of understanding signed with South Africa in 2014 and 2023; Rwanda in 2019; Burkina Faso in October 2023; Burundi in July 2023; and Mali in October 2023. Additional agreements were signed with Zimbabwe and Uganda. And while oil and gas engagement has been minimal to date, going forward, a shift in priorities is expected to see Russia-African cooperation rapidly expand.

Do you think Russia lags in supporting Africa with energy compared to other external players such as China? Can ‘energy mix’ help to drive Africa’s industrialization and economic growth? 

It is not about comparing support but rather about exploring future engagement and partnerships. Russia has been a strong partner for Africa for many years and will be an important part of Africa’s energy future. Russia is looking at playing a much larger role in Africa, going further than operating as a project developer. The country’s efforts to share insights, expertise and technology will represent a key driver of Africa’s future energy mix, which in itself is an important feature for alleviating energy poverty and industrializing the continent. Africa is promoting a diverse, inclusive energy mix, one in which oil, gas and renewable energy play a central role. Russia has been highly successful in this area, with natural gas and nuclear making up a significant portion of its energy matrix. In the same sense, African countries have all the resources needed to implement a diverse energy mix, and Russian support will be strategic in achieving this objective.

Is Russia participating in the formation of the proposed African Energy Bank? And finally what potentials are there to develop this sphere of energy business, especially with the heightening dynamics of the global situation? 

The African Energy Bank is an initiative spearheaded by the African Petroleum Producers Organization and the African Export-Import Bank that aims to significantly improve access to financing for African oil and gas projects. The bank is an Africa-led energy transition strategy that takes into account Africa’s need for oil and gas. Support from major players such as Russia will be critical, strengthening the bank’s capacity to finance a new future of hydrocarbon development in Africa. The changing global energy situation calls for the establishment of an institution of this nature. Africa has long relied on foreign finance to develop large-scale energy projects. From oil to natural gas to power and infrastructure, the continent is faced with navigating the complexities of global market trends. The establishment of the bank aims to counter this reliance, offering an alternative for project developers, countries and companies seeking finance.

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Power Outage in Nigeria as National Grid Collapses

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national grid collapse

By Aduragbemi Omiyale

Nigeria is currently experience a cut in power supply after the national grid collapsed for the 11th time in 2024.

This is the first time in over a month as the last time the nation witnessed a nationwide shut down in electricity supply was on November 7, 2024.

Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.

However, just when Nigerians were thinking they will not witnessed another national grid collapse in the year, it issue reared its ugly head again.

On Wednesday afternoon, most of the energy distribution companies suffered power outage, prompting them to inform their customers of the situation.

One of the DisCos, Ikeja Electric Plc, in a message to electricity consumers under its franchise area, said, “Please be informed that we experienced a system outage today, December 11, 2024, at about 13:32 hours affecting supply within our network.

“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us.”

Recall that on Tuesday, in a report, Google listed national grid as one of the top trending searches by Nigerians this year.

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NLNG to Replace Vessels in Move Towards Decarbonisation, Sustainability

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Nigeria LNG Limited NLNG

By Adedapo Adesanya

The Nigerian LNG Limited (NLNG), which produces Nigeria’s Liquified Natural Gas (LNG) and natural gas liquids (NGLs) for export, is planning to replace all its vessels with modern ships within the next decade.

This was disclosed by Mr Nnamdi Anowi, the General Manager of Production, NLNG, during the World Leaders’ Panel session on Tuesday in Berlin, Germany, as part of the 2024 World LNG Summit and Awards.

Speaking at the event themed “Achieving the Balance Between Energy Security and Decarbonisation,” he said the company which was incorporated in 1989 was making plans to boost its vessels to ensure proper transportation of gas for export.

“We are making significant strides in our shipping operations. Over the next 10 years, we aim to transition from our current steam-powered vessels to modern ships.

“Earlier this year, we took a major step by entering into a long-term chapter of our first modern ship Aktoras, and we are already planning to acquire a second ship next year,” he said.

On the critical issue of net zero emissions, Mr Anowi said that NLNG aspires to achieve net zero emissions by 2040.

According to him, this goal is attainable through implementing a combination of solutions that include operational efficiency, natural sinks/offset projects, carbon capture and storage (CCS), net zero expansion, digital solutions and shipping efficiency.

“Our pathway to net zero aligns with Nigeria’s target of reaching net zero by 2060, while many major players in the industry are aiming for 2050.

“We are actively expanding our initiatives in this area, including several low-carbon projects,” he explained.

Regarding Liquefied Petroleum Gas (LPG), Anowi noted that the company had committed 100 per cent of its LPG production (propane and butane) to the Nigerian market.

He pointed out the urgent need for cleaner energy, citing a report that revealed that not less than 100,000 Nigerians died yearly from smoke inhalation caused by cooking with firewood, predominantly affecting women and children.

“This underscores our commitment to sustainability. It’s important to recognise that about 80 per cent of Africans lack access to cleaner energy.

“When discussing sustainability, we can not overlook the necessity of providing energy to these communities,” he added.

He further elaborated on NLNG’s strategy, stating, “Our objective at Nigeria LNG is to maintain safety, enhance capacity, foster growth, and future-proof our business.

“The recent transformation programme includes a rebranding initiative, evidenced by the unveiling of a new logo and the company’s renewed purpose: providing energy for life’s sustainability.

Mr Anowi also noted that NLNG was working diligently to improve its production capacity from 23 million tons to 30 million tons through its Train 7 Project.

“We are actively engaging with stakeholders and the government to ensure our LNG trains are filled by the end of next year,” he said.

On sustainability, Mr Anowi explained that 75 per cent of NLNG’s emissions result from its operations, with the remaining 25 per cent coming from its shipping activities.

He emphasised the importance of measurement, reduction, avoidance and mitigation strategies in their sustainability efforts.

He said that the company was also exploring CCS opportunities through partnerships with the government and other international oil companies.

“We are in the early stages of CCS implementation, assessing potential reservoirs for this purpose,” he said.

In terms of renewable energy, Anowi said that NLNG was investigating solar power projects at its offices in Abuja and Port Harcourt as part of its broader sustainability initiatives.

“We are committed to abatement efforts and are collaborating with experienced private companies to explore carbon credit opportunities.

“We must balance sustainability with affordability and reliability in energy supply.

“The African region must progress at its own pace, prioritising immediate energy needs before addressing long-term sustainability goals,” he explained.

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National Grid, Mr Ibu Among Top Trending Searches by Nigerians in 2024

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By Dipo Olowookere

Many events happened in 2024 in Nigeria but a few shook the nation because of their impact on residents of the country.

According to a report released by Google, the incessant collapse of the national grip, which plunged the nation into darkness, was among trending searches on its platform.

In the report made available to Business Post on Tuesday, the tech giant said this year’s results show a continued interest in the political and economic landscape, with searches related to the US elections, the new national anthem.

“The 2024 Year in Search offers a unique lens into the questions, interests, and conversations that shaped the lives of Nigerians this year.

“From cultural milestones to pressing concerns, these insights reflect how Search continues to be a valuable tool for users to navigate and better understand their world,” the Communications and Public Affairs Manager for Google West Africa, Taiwo Kola-Ogunlade, stated.

Google’s 2024 Year in Search for Nigeria showcased the most popular searches, notable individuals, actors, musicians, topics, questions, and other subjects that captured Nigerians’ attention in the year.

Google’s Year in Search is an annual analysis that reveals the top trending lists and also spotlights what the world searches to see, learn, and do.

The music scene in 2024 was marked by a surge in popularity for artists like Shallipopi and Khaid, who also featured prominently in the overall personalities list. The top trending song was “”I Don’t Care” by Boy Spyce”, followed closely by “Ozeba” and “Commas” by Ayra”. Nigerians also showed a keen interest in understanding the lyrics of various songs, with “Ogechi lyrics”, “Ozeba lyrics”, and “Omemma by Chandler Moore lyrics” leading the searches in the lyrics category.

This year, Nigerians continued to demonstrate a strong interest in entertainment with movies like “A Tribe Called Judah”, “Treasure In The Sky”, and “Damsel” topping the movie charts. The top TV series that captured the interest of Nigerian netizens included “Supacell”, “My Demon”, and “Queen of Tears”. In the culinary world, Nigerians explored diverse recipes with “Pornstar Martini recipe” leading the searches.

Concerns about personal well-being and global events were also reflected in search trends. Questions like “How much is dollar to naira today?”, “How to get perfectly defined curls for African hair?”, and “Who won the US presidential election?” topped the list of queries. Nigerians were curious about the meaning of words like “demure,” “steeze,” and “pet peeves,” turning to Search for answers.

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