West Africa

The?market for natural gas in Europe has, at least thus far, passed the Hormuz test. The U.S. and Iran peace agreement suggests that the worst shock is over, even though flows may only recover gradually. This should calm supply concerns and focus attention on the pressures that will shape the market over the next few decades. As a result of the U.S.-Israeli conflict with Iran, the Strait of Hormuz was closed to nearly all trade in liquefied gas. This pushed gas prices in Asia and Europe sharply higher. Although the Strait of Hormuz is expected to be reopened under 'the...

Physical oil is at the center of the storm, a calm that deceives after the initial panic to deal with the largest oil crisis in human history. The Iran war blow has been softened by the dramatic drop in "China's" purchases and a rise in U.S. Exports. This delicate balance could not last long, as the peak season for demand is approaching. The crude oil market is surprising calm, despite the sudden loss of 20 million barrels of Middle Eastern oil per day, or about a fifth of global supplies, after Iran closed the Strait of Hormuz shortly after the...

Nigeria launched ?a 729 billion naira ($531.93 million) government-guaranteed ?bond on Tuesday aimed at reducing legacy ?debts in the ?power sector ?and ?improving liquidity across the country's electricity value chain. The Nigerian power sector has been struggling for years due to chronic liquidity shortages and tariff shortfalls. Inadequate investment, mounting debts across the electricity supply chain and inadequate investments have all contributed to a reduction in generation and distribution capacity. Taiwo Oyedele, Finance Minister and Coordinating Ministry of the Economy, said that the power sector bonds are part of the Presidential Power Sector Debt Reduction Program, which aims to "address...

According to a Moroccan-Nigerian statement, member states of the Economic Community of West African States signed an intergovernmental agreement in 'Freetown on Sunday backing the 'Nigeria - Morocco Atlantic gas pipeline. According to a joint?statement?by Morocco’s hydrocarbons & mining agency ONHYM & Nigeria’s state oil firm NNPC, the pipeline will transport up to 30 billion cube metres (bcms) of natural gases a year through 13?West African nations to Morocco. The statement stated that 15 bcm of that capacity will be?available for Moroccan and European markets via an?existing pipe that links 'Morocco with Spain. The pipeline was agreed upon a decade...

Data from market sources and LSEG show that Russia's seaborne gasoil and diesel exports plummeted in June. They fell by 39% from the month before to 1.8 million metric tonnes and 46% from 3.35 mtonnes in the same month a year ago, as waves of drone strikes forced unplanned shut downs at key refineries. According to traders' calculations and estimates, the number of ultra-low-sulphur Diesel shipments from Primorsk - Russia's largest outlet for diesel exports - has fallen by over half since May. The Russian authorities haven't made a definite decision yet about banning diesel exports. However, traders believe that...

Oil tankers behave as if the Strait of Hormuz was reopening, even though the waterway is only partially navigable. The signals are clear, from ship tracking data to the freight rates: Owners and charterers have moved early to position their vessels for a possible return to Gulf exports. The gap between expectations and reality is still wide. This leaves the global oil transportation system on a fragile "middle ground" between crisis and recovery. Signs of Recovery Real-time vessel movement is the most obvious?evidence? of adjustment. The number of tanker transits in Hormuz has begun to increase. During the conflict they...

Nigeria's foreign ministry announced that Nigeria and Morocco are expected to sign an Intergovernmental Agreement in the?fourth quarter of 2026, to progress a major Atlantic coast gas pipeline project. The agreement to be signed between the Nigerian president Bola Tinubu, and the Moroccan King Mohammed VI follows preliminary studies of the Nigeria-Morocco Gas Pipeline (also known as the African Atlantic Gas Pipeline). In a Tuesday statement, the Ministry said that this development was discussed during a phone call between Nigerian Foreign Minister Bianca Odumegwu Ojukwu, and her Moroccan counterpart Nasser Borita on Friday. Amina Benkhadra of the?Morocco’s hydrocarbons & mining...

A senior official revealed that the Africa Finance Corporation, the lead developer of the U.S.-backed Lobito mineral transport corridor, is in discussions with at least 10 African and foreign financiers including Citigroup to raise $3-5 billion for this project. The AFC has begun preparing for the construction of a key transport project, which will combine existing and new railway lines to link copper and cobalt mining areas with?Angola’s Atlantic port of Lobito. The project is a part of Washington’s effort to curb Chinese influence and secure access to strategic metals, minerals, and coal in Africa. AFC is currently in discussions...

Lagos is betting that Nigeria’s chronic electricity shortages can be solved outside of the national grid. The state's energy commission said the state would scale up its state-backed power production and distribution once it secured 400 megawatts in new supply. Nigeria's grid is struggling, and the largest city in Africa is pushing ahead with reforms that will allow sub-national governments regulate power. According to the data of?the power regulatory, at least 22 states are also setting up electricity market to reduce dependence on the centralised system Abuja. Biodun Ogunleye, Lagos' Commissioner for Energy and Mineral Resources, said this at a...

Nigerian airlines will cease all flights on April 20 unless the crippling jet fuel price, which they accuse the country's "fuel marketers" of artificially increasing, is reduced. Airline Operators of Nigeria (an industry group consisting of around 12 mainly domestic carriers) complained to the Major Energies Marketers Association of Nigeria in a letter dated April 14 that jet fuel had increased by approximately 270% since February. The price of oil and fuel has risen since the start of the Iran War, because the conflict is preventing shipping through the Strait of Hormuz. In a letter to AON, the company called...

The head of Morocco's hydrocarbons & mining agency (ONHYM), said that an intergovernmental agreement on a $25 billion Nigeria-Morocco pipeline would be signed in this year. Amina Benjamin, an ONHYM representative, told me by email that the project, known as the "African Atlantic Gas Pipeline", was agreed upon a decade earlier. It would run 6,900 km along a hybrid route, offshore and onshore, with a capacity of up to 30 billion cubic meters (bcm). This included 15 bcm for Morocco, to support exports to Europe. The feasibility study of the pipeline has been completed, as has the front-end engineering design...

David Bird, Managing Director of the Dangote Refinery, said that the cost of?crude shipments to the Dangote Refinery from a?Nigerian terminal has risen to $3.5m a day, up from $800k a week ago. He blamed the U.S./Israeli war against Iran. Bird said that the Dangote Refinery is operating at its full capacity of 650,000 barrels per day and will continue to operate as long as Nigerian crude oil can be purchased at international benchmark prices. The crude oil prices were stable in the mid-sixties a week ago. Bird told reporters in Lagos that the price of crude oil was now...

Grid manager revealed on Friday that Nigeria's gas-fired plants receive less than half of the fuel needed, resulting in a worsening of electricity supply across Africa's largest country. Operators claim that the shortage is due to a rising debt in the sector, resulting from government subsidies. This debt has reached 6 trillion naira (US$4.4 billion) for this month. Gas deliveries to power stations have fallen to less than half the required volume. The national generation is now down to 4,300 megawatts. This has forced the grid operator to reduce electricity supply, also known as load-shedding. They have also cut the...

Two industry sources and LSEG data show that the Russian port of Novorossiysk resumed oil loadings Sunday, after a suspension lasting two days due to a Ukrainian drone and missile attack. Novorossiysk suspended oil exports on Friday, a move that equates to 2.2 millions barrels of oil per day or 2% global supply. Oil prices rose by over 2% globally on the back of supply concerns following the attack. According to two anonymous industry sources, loadings have resumed. According to LSEG, two tankers - the Suezmax Arlan and Aframax Rodos - are loading oil on the port's berths. Two oil...