TNPA luring private oil-services investors to Saldanha using "flexible" terminal concessions

Freight logistics group Transnet is optimistic of receiving positive responses to a tender for the development of an offshore supply base (OSSB) for the oil and gas industry in Saldanha Bay, reporting that around 120 people attended a tender site briefing this week.

A request for proposals (RFP) was released in April, with bids expected during October for the public-private partnership (PPP) project, which falls under the oceans economy component of government’s Operation Phakisa initiative.

Engineering News, 29 June 2016

South Africa's Strategic Fuel Fund bids for Chevron refinery

South Africa's state-owned Strategic Fuel Fund (SFF) said on Wednesday it had offered to buy Chevron's majority stake in the country's oil refinery in Cape Town and other downstream assets as well as those in neighbouring countries.

"SFF has forwarded a commercial offer to Chevron and its financial advisers, in relation to the purchase of the 75% interest on offer," the company said in a statement.

The SFF said it would purchase 75% of the refinery and assets such as retail stations and depots for an undisclosed amount.

Engineering News, 29 June 2016

Microgrid technologies can help unlock electrification

Large-scale centralised generation will increase with the development of grid solutions, which will include an increase in focus on microgrid and standalone home systems, as well as off-the-grid, distributed generation solutions, says advisory firm PwC power, capital projects and infrastructure Africa partner John Gibbs.

“PwC sees a role for minigrid, also called microgrid development in small and medium-sized communities, particularly where there are strong point loads that can anchor a system, such as a hospital, a mine or a small industrial park,” Gibbs says, highlighting the PwC report Electricity beyond the grid: accelerating access to sustainable power for all.

Engineering News, 24 June 2016

Nigeria's Dangote shifts focus from cement to oil and gas

Africa's richest man, Aliko Dangote, plans to launch Nigeria's first private crude oil refinery by 2019 while almost doubling his cement production on the continent by adding plants in eight countries as he shrugs off a regional economic downturn.

Dangote told Reuters the US$12 billion refinery would have a capacity of 650 000 barrels a day, cornering the market in Africa's most populous country, where fuel shortages are a perennial problem.

Until recently, Nigeria was Africa's biggest crude oil producer but it imports 80% of its fuel because poor maintenance means its four refineries never reach full output. Its current daily consumption is 260 000 barrels, according to the International Energy Agency.

Engineering News, 24 June 2016

Mainstream Renewable Power to further drive Lekela Power platform

On Thursday, global renewable energy developer Mainstream Renewable Power revealed that it has signed US$117.5 million equity investment from investors including the IFC.

The deal between Mainstream Renewable Power and the International Finance Corporation (IFC), which is subject to shareholder approval, will provide equity funding for the Lekela Power platform – a joint venture with the global pan-emerging market private equity firm Actis, the company highlighted in a statement.

The firm further underlined that the funding package will help Lekela Power meet its goal of constructing over 1300 MW of new power capacity needed in Africa by 2018, while also addressing the challenge of climate change.

ESI Africa, 24 June 2016

Tanzania’s rural electrification expansion programme gets US$200m through World Bank

According to the World Bank the rural electrification expansion programme seeks to build on the recent achievements accomplished in 2014 of expanding nationwide access to 36% in the east African country.

The national rural electrification programme (2013–2022) under which the new programme is to be implemented, includes both on-grid and off-grid solutions and has four priorities. These priorities are centred around the connection of new customers to the grid in already electrified settlements, new connections to the grid, electrification through off-grid investments and the development of distributed technologies, particularly off-grid solar and other renewable technologies.

ESI Africa, 24 June 2016

Uganda’s UEGCL applies for power exporting licence

According to local media, the Monitor, UEGCL is applying for a power generation licence to export surplus power from the Karuma Hydro Power Plant, without specifying to which countries the power will be exported.

It is reported that the information was obtained from the power generation company’s May 2016 application.

"The power generated will be taken through a 400 kilovolt switchyard to the nearest proposed pooling station for onward transmission to energy deficient regions [in Uganda]," reads the application.

ESI Africa, 27 June 2016

The above reflects a summary of certain news articles published during the preceding week. It is not an expression of opinion in respect of each matter, nor may it be considered as a disclosure of advice by any employee of Hogan Lovells.