Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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To meet its needs in 2021, Cameroon is preparing to import 120,000 metric tons of domestic gas
(Business in Cameroon) - The Chairman of the ad hoc Commission in charge of imports of petroleum products (CIPP) of Cameroon Okie Johnson Ndoh, has just published a press release informing the oil companies approved in the field of the launch on November 23, of a tender for the import of 120,000 metric tonnes (MT) of Liquefied Petroleum Gas (LPG), commonly known as domestic gas.
This quantity of LPG being imported is up 5,000 MT compared to the quantity authorized in 2019. That year, Cameroon launched a similar market to buy 115,000 MT. According to the president of the CIPP, the 120,000 MT in the process of being ordered abroad aim to cover the country's consumption needs during fiscal year 2021. The import will be in three batches: 60,000 MT, 35,000 MT and 25,000 MT. Sessions counting and adjudication thereto will be held on Tuesday 1 st December 2020 at the Caisse de stabilization in oil prices (HSPC), in Yaounde.
These imports will fill the gap in the national domestic gas market, because Cameroon itself is a producer. Indeed, thanks to the production of liquefied natural gas (LNG), the National Hydrocarbons Company (SNH) was able to deliver 20,545.05 tonnes of liquefied petroleum gas for the supply of the national market in 2019, i.e. the equivalent of 1,643,604 12.5 kg bottles. This represents a growth of 943,604 bottles since in 2018, SNH delivered nearly 700,000 12.5 kg gas bottles, the most used by households.
https://investiraucameroun.com/economie/2311-15614-pour-couvrir-ses-besoins-en-2021-le-cameroun-se-prepare-a-importer-120-000-tonnes-metriques-de-gaz-domestique
Poor finish. Heading back to normal levels.
I presume 68 waited until the end of the day before topping up so as to keep his average low
Was it four walls and a grill?
https://investmentmonitor.ai/extraction/the-state-of-play-fdi-in-cameroon
Always been kicking around - just had different focuses in recent times.
It could get interesting here again - not before time.
I was doing a bit of research on the West Med location when I came across this.
https://www.upstreamonline.com/exploration/gazprom-targets-exploration-in-region-with-huge-gas-projects/2-1-766554
I can't find anything directly about the Pandinsky block mentioned but since there are major gas fields to the north and east and there is a national park and smaller gas field to the south of medvezhe, it looks probable that it is close by or adjoining West Med in the area between Nadym and Medvezhe. Roy mentioned unsolicited interest and it seems likely this is why. Makes sense to combine the whole lot into a bigger project. With Medvezhe in decline and all the infrastructure in place and nearby it would be a low(er) cost development to replace lost production.
Check out google earth - you can see all the gas field infrastructure for the main fields, medvezhe, yamburg and urengoy and zoom in on the processing plants. Medvezhe runs north from Pangody to the coast. Yamburg is north of that and Urengoy (at one time the largest gas field in the world) is to the east and north east.
I can't see a sale not going through in the light of this. But I can see why there wasn't much interest before. Too many big gas projects in the wider region.
Now we know a placing is in the offing!
Welcome back PB. We've missed your positivity
.....is for wimps ;)
Malbrun - that's my understanding from when I was in this the first time the eneo supply stopped. Not sure if this time is different.
The Gov is a large shareholder in Eneo - 44%
I can't see anyone investing in a large public infrastructure project until the government proves they are willing to play by the rules and pay for what they use.
My feeling is that the SP is too high for my own risk/reward. Been here before with this company...imminent approvals and large contracts. Foo is out of the way but I think he did alright on that front. Just ripped the absolute arsse out of it cash wise...
Hi Pshepp.
Glad to hear from you.
My understanding is that it was governments failure to pay that lead to ENEO defaulting. I would be nervous about relying upon them as a guarantor.
Hi Malbrun
This could be slightly different as it is the government that has commissioned the building of a long term power station compared to the gensets supplied by Altaaqa, I can not see Aksa setting this up with out guarantees from the government in the event of Eneo defaulting on payment.
That is the nub of it unfortunately.
I stood in front of Ahmet when he said that supplying power generators would be the path forward but still couldn't guarantee payment.
Eneo owe GDC $10 million currently and we have cut them off!
I see eneo are also involved in this Aksa deal so that does not inspire much confidence...
ENEO
Have who paid?
I think Government provided some funds earlier in year, and another tranche this October (you'll need to check this out, I could be wrong). Bank funding I think was due on 5th October. I don't know whether it went through. Eneo issues quarterly reports, so the next one should have details, I hope.
Sorry, have they paid?
Malbrun- Yes, but there has been massive re-financing of Eneo in October ($236m if I recall) with various 5 and 10 year plans. Some is coming directly from the government; some from banks.
Check through my posts in September for more on this.
That's what hurt ENEO.
It wasn't that they didn't want to pay us, it was that they weren't being paid. I fear that the same will be true for Altaaqa because the ultimate payee is the same.
mrc - good post from forest pretty much explains it - the DIK interview quickly answers your questions.
Also look at all the VOG RNS's.
Then there is the Etinde project and Limbe-Bekoko pipeline. This is separate to the aksa power station; but somewhat dependent on it (though export solution, or Limbe/ferrostaal builds, provide alternatives).
Go to the Bowleven.co site and check out the recent Conference call, and both VOG and BLVN RNS's.
Also check out the Aksa.Energii website.
If Aksa gets built, then both projects will come in at the same time imo.
Thanks Forrest! Looks interesting. Close to the pipeline but investment needed in a new processing plant could be significant. Probably more bloody presidential approvals needed to build all this as well...
Malbrun - yes this would be a concern. Government don't seem to be much interested in paying for their leccy.
Some research to get on with, thanks all.
The question is, will they be able to pay for the gas they consume?
Term Sheet signed with Aksa Enerji Uretim A.S.
to supply up to 25mmscfd of gas to 150MW Douala Power Station
Victoria Oil & Gas Plc, whose wholly-owned subsidiary, Gaz du Cameroun S.A. ("GDC"), is the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to announce that it has signed a non-binding term sheet with Aksa Enerji Uretim A.S. ("Aksa Energy") ("Term Sheet") to supply Aksa Energy with up to 25mmsfd of gas to Aksa Energy's planned 150MW power station, to be located in Bekoko, Douala, Cameroon.
The Term Sheet is subject to various conditions precedent, including government approvals and the signing of a Power Purchase Agreement by Aksa Energy with Eneo Cameroon S.A. ("ENEO") or "Sonatrel" (the Cameroon Government owned manager of the national electricity network). The key commercial terms between Aksa Energy and GdC include:
·; Gas Price: US$6.75 per mmbtu;
·; Term: 25 years, plus option to extend for an additional 5 years; and
·; 70% Take or pay component.
Aksa Energy is one of the largest independent power producers in Turkey, selling 14 TWh/year of energy globally.
On 2 July 2019, the Minister of Water Resources and Energy of Cameroon ("Minister"), on behalf of the Government of the Republic of Cameroon, and Aksa Energy, entered into a Memorandum of Understanding to develop a 150MW of power plant project in Douala, subject to receipt of the requisite approvals and licenses
The location of the proposed power plant is expected to be near the Bekoko substation, near to GDC's existing gas pipeline
GDC's management has been working closely with Aksa Energy and ENEO to develop this exciting gas-to-power project, and GDC, Aksa Energy and ENEO gratefully acknowledge the support and guidance they have received from the Minister.
The Term Sheet, which the Company expects to lead to a long term grid power contract requiring natural gas from GDC gives support to the long term field development plans of GDC in Cameroon for both the Logbaba Field and Matanda Block in order to deliver the contracted gas for this project.
https://www.lse.co.uk/rns/VOG/term-sheet-signed-with-aksa-energy-5duv7qzlij93eod.html
https://www.youtube.com/watch?v=veHsS2FlGd4
RF, Happy,
Sorry I'm not up to speed with this Aksa. Is there any announcement or press that you could point me towards?
What sort of volume would they need, and how far are they from the pipeline?
I'm guessing a fundraiser will be needed if there are infrastructure upgrades (process plant capacity, pipeline).
Thanks
Altaaqa - the other party suing Eneo.
RF68 mentioned that last week they had removed the Gensets from Logbaba power station.
Is this because negotiations have broken down entirely with Eneo, and thus the legal battle for compensation is now the only game in town?
Or is this a move to pressure Eneo to settle (and to sign a new contract)?
Or, is this a prelude to getting Eneo to switch from the rental model to a new BOOT model?
And could such a BOOT model be used for Limbe power station?
http://altaaqaglobal.com/insights-on-the-suitability-and-effectiveness-of-boot-solutions-in-latin-america/
https://www.zahid.com/businesses/energy-utilities/