Ghana reaches deal with ENI to increase gas supply, energy ministry says
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Reuters
a day ago
- Reuters
Senegal unveils recovery plan to rely on domestic funding
DAKAR, Aug 1 (Reuters) - Prime Minister Ousmane Sonko on Friday unveiled a new economic recovery plan for Senegal, pledging to finance 90% of the initiative through domestic resources and avoid additional debt. The plan, aimed at stabilizing the finances of a West African nation that began producing oil and gas last year, comes with Senegal facing financial challenges and scrutiny over debt misreporting. The country is grappling with billions of dollars in hidden debts from the previous administration, which led to the International Monetary Fund (IMF) freezing its loan programme. "We have identified more than 4.6 trillion CFA francs ($8.16 billion) in available resources between 2025 and 2028, without increasing the state's debt," Sonko said during a presentation in the capital Dakar. The plan to cut public spending and boost revenues aims to help narrow the budget deficit to 3% of GDP by 2027 from 12% in 2024. Its measures include merging and downsizing state institutions, which the government estimates could save around 50 billion CFA francs, and scrapping tax exemptions in certain sectors, particularly in the largely untaxed digital economy. He cited online gaming and mobile money as examples. Taxes on tobacco will increase to 100% from 70%, while visa fees will be introduced for visitors from non-African countries and African states that require visas for Senegalese citizens. Visa fees are projected to generate 60 billion CFA. Sonko said the government expects to raise 884 billion CFA francs from the renegotiation of contracts, particularly in the oil and mining sectors, and an additional 200 billion CFA from the renewal of telecom license. To attract investment, the government will ease access to land titles and raise the age limit for imported vehicles – a key demand from Senegal's diaspora. Senegal will also seek external partners to recycle existing assets and continue to mobilise resources on the domestic market in local currency. Foreign currency debt must target sectors such as hydrocarbons, oil, gas and mining, Sonko said. He said the reforms would also enable the government to better target subsidies and social programmes to meet the needs of the population. The IMF has for years called on Senegal to curb what it describes as expensive and inefficient energy subsidies, which in March it estimated as amounting to up to 4% of GDP. "The problem with these subsidies is that it's not the vulnerable households that benefit from them. Most of these subsidies, they go to the wealthiest households," IMF mission chief Edward Gemayel told Reuters in an interview in Dakar in March. He said the subsidies should be gradually phased out with cash compensation given to vulnerable families, adding that it would be important to communicate clearly to Senegalese why the cuts are necessary.
Reuters
a day ago
- Reuters
NextDecade sets September for final investment decision on Rio Grande LNG Train 5
Aug 1 (Reuters) - U.S. liquefied natural gas developer NextDecade Corp (NEXT.O), opens new tab said on Friday it was targeting mid-September for a final investment decision on Train 5 of its Rio Grande LNG project in Texas. The move follows its first long-term offtake deal for the fifth train and the execution of an engineering, procurement and construction contract. NextDecade said it was working to contract an additional 2.5 million tonnes per annum under LNG supply deals to support Train 5. LNG developers typically reach a final investment decision on projects once they have secured enough supply deals to obtain the necessary financing for construction. NextDecade is also aiming final investment decision for Train 4 in the same timeframe, having secured 20-year LNG supply deals with Aramco ( opens new tab, TotalEnergies ( opens new tab and ADNOC. "Phase 1 remains on schedule and on budget, and we are progressing Trains 4 and 5 quickly toward final investment decisions," NextDecade CEO Matt Schatzman said in a statement. As of June, Trains 1 and 2 and common facilities of the Rio Grande LNG facility were 48.3% complete, while Train 3 stood at 22.7%, the company said.
Reuters
a day ago
- Reuters
Enbridge rides on utilities, gas segments strength to top estimates
Aug 1 (Reuters) - Canadian pipeline operator Enbridge ( opens new tab, beat analysts' estimates for second-quarter profit on Friday, boosted by contributions from recently acquired U.S. gas utilities and strong earnings from its gas transmission business. The company said it sanctioned a 40 billion cubic feet expansion of the Aitken Creek gas storage facility in British Columbia, Canada to support growing west coast LNG export demand and a 160 million cubic feet per day expansion of Line 31 in the U.S. Southeast. Pipeline operators are benefiting from an increase in demand for natural gas, primarily driven by LNG exports, as well as rising electricity demand. "We are capitalizing on growing power demand and strong natural gas fundamentals," said CEO Greg Ebel. Calgary-based Enbridge last year bought three Dominion Energy (D.N), opens new tab utilities — East Ohio Gas, Questar Gas and Public Service Co of North Carolina — in a $14 billion deal, including debt. This powered a jump in adjusted core earnings to C$840 million, from C$567 million last year, in its gas distribution and storage unit. Enbridge reported an adjusted core profit of C$1.38 billion ($995.02 million) from its gas transmission unit, up from C$1.08 billion a year earlier. The company is also building out its renewables portfolio and said last month that it had reached a final investment decision to invest $900 million on a 600-megawatt solar power project in Texas, backed by Meta (META.O), opens new tab. Enbridge sanctioned roughly C$2 billion in new projects during the quarter. The company said it does not expect tariffs to have a material impact on its current operations or deployment of capital, though it will continue to monitor the developments. Enbridge posted an adjusted profit of 65 Canadian cents per share for the quarter ended June 30, beating analysts' average expectation of 57 Canadian cents, according to data complied by LSEG. ($1 = 1.3869 Canadian dollars)
