Oil & Energy
Iran Embargos Oil Supply To Greece
Iran’s oil supply to Greece have stopped this month, depriving the Islamic Republic of one of its most loyal European customers and leaving Greece with its financing troubles struggling to buy crude elsewhere.
The European Union will impose a full embargo on Iranian oil imports from July 1, as part of an international stand-off over Tehran’s nuclear programme.
Consequently, refiners in Europe and Asia, scrambling for alternate suppliers, citing the banking difficulties in paying Iran for its oil.
Greece is considered more vulnerable than most buyers as it is suffering a major economic crisis and has relied heavily on Iran, supplier of more than half its oil imports some months last year.
Such imports rose as the EU country’s woes prompted traders and oil majors to pull plug on supplies and banks refused to provide financing for fear that Athens would default on its debt.
On Thursday, Iranian state television Press TV reported that the Iran had blocked oil sales to Greek companies Hellenic Petroleum and Motor Oil Hellas, accusing them of defaulting on payments.
A senior source at top Greek refiner Hellenic told Reuters on Tuesday it had suspended Iranian purchases because sanctions imposed made it impossible to pay.
U.S. and EU sanctions are designed to force Tehran to abandon uranium enrichment activities which they suspect are part of a programme to develop nuclear weapons.
Iran has repeatedly denied this, saying its nuclear know-how is for peaceful purposes only.
The United States has exempted Japan and 10 EU nations, including Greece, from financial sanctions because they have significantly cut their purchases.
But the exemption has little meaning because banks have grown reluctant to deal with Iranian oil-related transactions altogether.
“Payment is the problem, EU banks don’t do the payments,” a source at refiner Motor Oil Hellas said.
The refiner stopped buying Iranian crude after the EU announced an embargo of Iran in January but was able until recently to take a monthly contractual cargo.
As part of Greece’s efforts to find new oil supply, Hellenic secured a cargo of Russian Urals crude in a rare tender last month.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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