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Barclays slashes oil price forecast to $103pb

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Barclays slashes oil price forecast to $103pThe Barclays of the United Kingdom has slashed Brent oil price forecast to 103 per barrel from its earlier $111 previously projected considering the Russian oil supply and an expected surplus on the market.

The bank also cut its outlook on near-term WTI Crude prices by $8 a barrel, expecting the U.S. benchmark to average $99 per barrel in both 2022 and 2023.

Early on Tuesday, WTI Crude prices were trading at below $90, at $89 per barrel, and Brent was at $94 a barrel after a slump on Monday following dismal economic data out of China, stoking fears of demand in the world’s top crude oil importer.

Two months ago, Barclays raised its oil price forecast to $111 a barrel Brent, citing the effects of the announced EU embargo on Russian seaborne imports and delays in the renewal of the Iran nuclear deal.

The recent sell-off in oil was the result of still resilient Russian oil supply and elevated market concerns that an economic slowdown, or a recession, is coming, Barclays said in a note carried by Reuters.

Once the EU embargo enters in full force in early 2023, Russian oil supply is expected to drop by 1.5 million barrels per day (bpd) compared to the levels before the Russian invasion of Ukraine, the UK bank said.

Still, the downside to oil prices could be limited because the OPEC+ group could decide next year to withhold some supply from the market if global oil demand slows down in a mild recession, according to Barclays. Several banks have recently downgraded their oil price forecasts in view of still resilient Russian supply and an expected downturn in economies and potentially weaker oil demand.

Earlier this month, Goldman Sachs also revised its Brent price forecast for this quarter to $110 a barrel, down from a previous projection of $140 per barrel, but the investment bank still believes the case for higher oil prices remains strong. Goldman Sachs also revised its fourth-quarter Brent price forecast to $125 a barrel, down from $130 per barrel previously expected. The 2023 projection, however, was left unchanged at $125 per barrel.

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Energy

TCN blames fire incident for national grid collapse

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The Transmission Company of Nigeria, TCN, says a fire incident caused the collapse of the national grid on Monday.

The General Manager of Public Affairs, Ndidi Mbah, disclosed this in a statement.

Recall that Nigerians were thrown into darkness after the national grid collapsed around 2:40 am for the second time in two months.

However, TCN said the grid has been restored.

“The Transmission Company of Nigeria (TCN) announces the full restoration of the national grid following a fire incident at the Afam power generating station, which caused a partial disturbance of the national grid.

“At 02:41Hrs today, 15th April 2024, a fire erupted at the Afam V 330kV bus bar coupler, leading to units tripping at Afam III and Afam VI. This resulted in a sudden generation loss of 25MW and 305MW, respectively, destabilizing the grid and causing a partial collapse.

“During the incident, the Ibom Power plant was isolated from the grid and was supplying parts of the Port Harcourt Region. This further minimized the effect of the system disturbance. TCN confirms that the affected section of the grid has been fully restored and stabilized,” the statement reads.

However, parts of Nigeria have remained in darkness since midnight.

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Energy

NIPCO completes four CNG stations in Lagos

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NIPCO Plc says it has completed four Compressed Natural Gas (CNG) stations in Lagos, set for inauguration by May.

The Managing Director of NIPCO Gas Ltd., Mr Nagendra Verma disclosed this during an interaction with newsmen on Sunday in Lagos.

Verma, who highlighted the significance of CNG as a viable alternative fuel, commended the Federal Government’s initiative in promoting gas as an alternative fuel.

He affirmed NIPCO’s commitment to supporting the initiative while emphasising the company’s extensive involvement in AutoCNG development since 2009.

He also spoke on the company’s partnership with the Nigerian National Petroleum Company Ltd. (NNPCL) to construct 35 AutoCNG stations in phases.

“The completion of these CNG stations in Lagos marks a significant milestone, offering motorists an alternative to petrol amidst long queues at filling stations.

“The facilities would be opened for commercial operations within April and May to become the first of its kind in the state which is now contending with long queues at filling stations,” Verma stated.

He further outlined pricing details, noting the competitive rates of AutoCNG compared to traditional fuels.

The NIPCO boss expressed confidence in AutoCNG being the preferred fuel, especially with government support and media advocacy.

According to him, the company has identified 19 CNG station locations and had received stage-wise approval from the Nigerian National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other statutory authorities.

Verma, who assured sustainability of supply after commissioning, said that currently, for cars, taxis and Keke’s; AutoCNG is sold at N200 per standard cubic feet scm against the petrol price of N610 per litre, in Lagos and N230 per scm against the PMS price of N670 per litre in Abuja.

The Managing Director further informed that similarly for heavy commercial vehicles; AutoCNG is being sold at N260 per scm against the AGO price of N1,250 per litre in Lagos and N290 per scm against the AGO price of N1300 per litre in Abuja.

“NIPCO Gas is sure that with the continuous focus and push by the current government, AutoCNG will become the choice fuel for Nigeria, which has the potential to reduce the pressure on importation as well as on forex.

“AutoCNG is a project for masses and of national cause and importance,” adding, “We are sure once expanded across Nigeria; it will surely and definitely relieve the masses and motorists from high fuel cost.

“We continuously seek blessing and support of the government and media to make AutoCNG a reliever, cleaner and greener fuel of Nigeria,” he added.

Speaking on the company’s strategy, Verma said, initially, the company started with Benin City and expanded the AutoCNG network to Ibafo in Ogun State and later-on in Kogi State.

He stressed further that with the initiatives and clear mandate by the current government, the AutoCNG network also expanded to Abuja FCT, Ibadan in Oyo State and Oron in Akwa Ibom State.

He said that NIPCO gas presently operates 15 AutoCNG stations across Nigeria and CNG vehicles from Lagos can travel up to Abuja and Kaduna by taking CNG from the in-between NIPCO Gas AutoCNG stations

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Ikeja Electric adds 34 new Band A feeders to boost power supply

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The Ikeja Electricity Distribution Company has announced an addition of 34 new Band A feeders to its network with a view to increasing power supply to customers.

This development took place after a meticulous monitoring and evaluation of power supply capacity by the Nigerian Electricity Regulatory Commission (NERC).

The Disco, in a X (formerly Twitter) post said, “Premised on our demonstrated ability to provide a minimum of 20 hours daily and an evaluation period monitored by the Regulator, we are pleased to announce approval to add 34 additional Band A feeders to our network.”

The areas added to Band A in the Disco’s network fall under the 32KV and 133KV Band A location and include places in Ikorodu, Magodo, Maryland, Magodo, Ilupeju, Ejigbo, among others.

Following the hike in electricity tariffs for Band A customers who enjoy at least 20 hours of electricity daily, the NERC mandated Discos to ensure those in the category receive 20 hours of electricity supply daily.

The regulator also stated that when Discos fail to provide such, it should publish the reason for the failure on its platforms the next day.

The NERC also mandated Discos to open a portal where customers can check their locations and band feeders to prevent inappropriate billing.

The Federal Government increased the tariff for Disco earlier this month from about N68/KWh to N225/KWh as a measure of attracting investment to the power sector and reduce the electricity subsidy burden on its books.

The increase in Band A location means more electricity customers paying the new tariff of N225/KWh for the Disco, which means more revenue.

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