Ndubuisi, in your article of June 28 titled: Europe returns to coal and lessons for Africa, you said: “I wrote here that Africa must not allow Europe to write our policy energy. When Europe says get rid of coal, be very careful, it’s very convenient for Europe to get rid of coal. Simply, its political framework that it exports all over the world is based on the thesis of its comparative advantages.
It’s a good. It tells us in the third world, in particular, African countries that the so-called energy transition is an imperialism designed to keep Africa and the rest of the poor countries in perpetual economic slavery. Your article points out the duplicity of the so-called advanced world. But this contrasts with your annual analyzes of the Dangote refinery. Perhaps, because of your steadfast belief in energy transition, you didn’t think Nigeria’s first private refinery had a future.
Here are some of the points you raised about the Dangote refinery in one of your reviews:
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“Dangote Group is building a refinery. But I think it takes at least ten years to extract the maximum value from that investment. Although Nigeria continues to import petroleum products, distorting our balance of payments and crushing the Naira, my model is that the refining business will do well, marginally. Yes, the refinery will solve market frictions, but it would be skewed over the years. As I drive across America, a popular scene now is of closed gas stations, picking up where the malls left off…”
“Looking at all the trajectories, Aliko Dangote is getting poorer despite doing more! It is a paradox because technically Dangote has improved the quality of its assets over the past seven years as the Dangote Group evolves into an industrialized conglomerate.
“Simply, once Ford, GM, Toyota, etc. will have stopped making fossil fuel cars, Nigerians will no longer be able to benefit from special treatments. Because we don’t make cars, we have to adapt! The refineries of the future are refueling stations and not crude oil refineries. In the United States, most refineries are going bankrupt because in the next few years the cost of buying an electric car will be at par with fossil fuel cars.
“Don’t put so much power into the refining business as a company for decades. The useful life of this sector is measured in years, not decades. We expect Tesla to produce electric cars that would be as affordable as Toyota, Honda, etc. in the years to come. But Ford, GM and Toyota could get there before.
In conclusion, you wrote, “So my thesis is: the best refining company of the future in Nigeria, from 2030 is charging stations because the world will not go back on the march to EVs because Nigeria loves their hydrocarbon-based cars.”
This article is a true de-marketing of Dangote Refinery. Whether you know it or not, the Dangote Refinery is the best thing that has happened to Nigeria and Africa in general.
The Dangote Oil Refinery is a 650,000 barrel per day (BPD) integrated refinery project being constructed in the Lekki Free Zone near Lagos, Nigeria. It is expected to be the largest oil refinery in Africa and the largest single-train facility in the world.
The Dangote Oil Refinery pipeline infrastructure is the largest in the world, with 1,100 kilometers to process 3 billion standard cubic feet of gas per day. The refinery alone has a 435 MW power plant capable of meeting the total energy needs of Ibadan DisCo.
The refinery will supply 100% of Nigeria’s needs for all refined products and will also have a surplus of each of these products for export. Dangote Petroleum Refinery is a multi-billion dollar project that will create a $21 billion a year market for Nigerian crude. It is designed to process Nigerian crude with the ability to process other crudes as well.
This is what advanced countries want to scuttle with their so-called energy transition, which can be likened to imperialism. As Hamza Hamouchene points out, “Any discourse on green transition and sustainability must not become a front for neocolonial schemes of plunder and domination.”
Energy transitions are not just about economics, engineering or science. Rather, the question is why the use of specific science or techniques makes sense at any given time and leads to specific energetic results. The transitions could be linked to imperialist projects such as the partition of Africa or the Nazi expansion into Eastern Europe; to a specific political party coming to power on a grassroots wave of mega-developmentalism; or the belief that certain forms of energy have adverse effects on the environment and should not be pursued.
To read: NOVEMBER 3, 2021, 5:56 p.m. FP: oreignpolicy.com/2021/11/03/cop26-climate-colonialism-africa-norway-world-bank-oil-gas/
With natural gas prices at record highs in Europe, Norway is gaining ground. The country is Europe’s second-largest gas supplier after Russia and has just agreed to increase natural gas exports by 2 billion cubic meters to ease the continent’s severe energy shortage. Its neighbours, like Britain, are grateful for every spoonful of gasoline as winter approaches.
Yet even as wealthy Norwegians count their crowns thanks to rising prices and booming exports, their government is working hard to prevent some of the world’s poorest countries from producing their own natural gas. Along with seven other Nordic and Baltic countries, Norway has lobbied the World Bank to end all funding for natural gas projects in Africa and elsewhere as early as 2025 – and until then only in “exceptional circumstances”, according to a report. unpublished statement from the group. , seen by Foreign Policy, details. At COP26, 20 countries went even further, pledging to stop all funding for fossil fuel projects abroad from next year. Instead, the Nordic and Baltic countries suggest the World Bank should fund clean energy solutions in the developing world “such as green hydrogen and smart microgrid networks”.
The idea that some of the poorest people on the planet will use green hydrogen – probably the most complex and expensive energy technology in existence – and build “smart microgrid networks” in just a few years on the scale required is absurd. . Even solar power or wind power – if it could be built fast enough – could not fuel development in the Global South without backup power using fossil fuels, of which gas is by far the cleanest. In sub-Saharan Africa, which has vast offshore gas deposits and includes many of the world’s poorest countries, a ban on financing gas projects would virtually end support for critical energy infrastructure needed to sustain economic development and raise the standard of living, including electricity for homes. , schools and factories; process heat for the production of cement and steel; carbon dioxide which is an essential component of synthetic fertilizers; and liquefied gas for transportation and cooking fuel.
This last example perfectly illustrates what Norway’s fight against natural gas means for the world’s poor. About 3.8 million people die prematurely each year from the effects of indoor air pollution, according to the World Health Organization. The vast majority of these deaths occur among the 2.6 billion people in poor countries who still burn wood, coal, charcoal or animal dung indoors for cooking. Women and children performing household chores are particularly exposed to this toxic smoke, which penetrates deep into the lungs. The switch to bottled cooking gas, widely promoted by India, China and the United Nations, is saving countless lives in the developing world. This is one of the reasons why the UN, where developing countries have a stronger voice than in Oslo, Washington or Berlin, classifies natural gas as a clean energy source and encourages the switch to gas as part of the Sustainable Development Goals, which call for global access to clean and affordable energy.
In the conclusion of your analysis on coal, you said, “This is the market: Africa needs to define its future according to its positioning and improve so that these countries and regions do not push it around. Across Africa, many coal-fired factories have been encouraged to close to save the world from the blaze. But here, instead of Europe following, they’ve ignored their books and are making coal friends again.
This is exactly what African countries are doing. The climate problems the world is witnessing today do not come from Africa, so the continent should not be blamed. A recent EU-AU Summit declaration calls for a “fair, just and equitable” energy transition, taking into account “the specific and diverse orientations of African countries in terms of access to electricity”.