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Algeria forbids Spain from reselling its gas to Morocco

Published

2 years ago

April 28, 2022

Algeria has prohibited Spain from reselling its gas to neighbours Morocco and has threatened to terminate the gas supply contract it entered with the European country after Madrid announced plans to ship gas to Morocco, but stressed that none of that gas would be of Algerian origin, which angered the Algerian government.

A secret report revealed that Morocco wants to import liquefied natural gas (LNG) from Spain by reversing the flow of the pipeline while it moves to develop its own longer-term LNG import terminals.

The Algerian warning came on Wednesday after it emerged that Madrid was planning to resell gas gotten from Algeria to other countries, especially those seen as enemy countries.

Before the warning, Algeria had previously said it will stick to its contract with Spain despite withdrawing its ambassador over a dispute between the two countries relating to the Moroccan-controlled territory of Western Sahara.

Since the invasion of Ukraine by Russia on February 24 and the crisis generated by the conflict, African gas supplies to Europe have grown increasingly important and with no end in sight as the crisis has cast doubt on Russian energy exports, Algeria had entered deals to raise its gas supply to some European countries including Spain and Italy.

Algeria had also decided last year not to extend a deal to export gas through a pipeline running through Morocco to Spain that made up nearly all Morocco’s gas supply and is supplying Spain through a direct subsea pipeline and by vessel.

However, Spain’s energy ministry said that in no case would gas acquired by Morocco come from Algeria and that it had discussed the plan with Algiers in recent months.

“Morocco will be able to purchase LNG on the international markets, unload it at a regasification plant on the Spanish mainland and use the Maghreb gas pipeline to bring it to its territory,” the ministry said on Wednesday.

Related Topics:Algeria Featured gas Morocco Spain

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Egypt reduces 2040 renewable energy target to 40%, prioritises natural gas

Published

2 days ago

October 20, 2024

Ifeoluwa Dada

Petroleum Minister Karim Badawi announced on Sunday that Egypt had reduced its 2040 renewable energy target down from a previous goal of 58% to 40%, highlighting the fact that natural gas will continue to play a significant role in the nation’s energy mix for years to come.

Egypt promised to increase the percentage of renewable energy output in its energy mix to 42% by 2035 before hosting the COP27 climate meeting in 2022.

Later, the aim was advanced to 2030. Mohamed Shaker, the then-minister of electricity, unveiled a bold proposal in June 2024 to increase this to 58% by 2040; however, that goal has since been abandoned.

“This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve discoveries in the region, which holds more wealth, particularly natural gas,” Badawi said in the opening session of the Mediterranean Energy Conference 2024.

Egypt’s persistent dependence on fossil fuels coincides with efforts to regain the confidence of international oil companies, whose domestic activities ceased due to a shortage of hard currency that put the nation in debt to the tune of billions of dollars.

Since entering office in July, Badawi has met with many foreign energy corporations, such as Eni of Italy, which intends to increase production in Egypt’s largest gas field, Zohr, by digging additional wells in early 2025.

At its peak of 3.2 billion cubic feet per day (bcf/d) in 2019, Zohr’s gas output allowed the nation to turn a profit.

However, by early 2024, output had dropped to 1.9 bcf/d, forcing Egypt to import more gas through a pipeline connecting it to Israel and more LNG to avoid a months-long load-shedding program.

Additionally, Egypt imports fuel oil that contains sulphur; in September, imports reached a record-breaking 255,000 barrels per day (bpd), the highest level since at least 2016.

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Nigerian govt imposes 5% tax on telecom, betting services

Published

3 days ago

October 20, 2024

Ifeoluwa Dada

As part of a new plan to restructure the nation’s tax system, the Nigerian government has proposed a 5% excise fee on gaming and betting operations, and telecom services.

The bill was obtained from the National Assembly on October 4, 2024. It was titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.”

The goal of the new legislation, according to an examination of it on Friday, is to impose excise taxes on services like betting, lotteries, gaming, and telecoms that are offered in Nigeria.

According to a portion of the bill, the amount of an excisable transaction is the amount that the service provider charges for the service, expressed in both money and money’s worth.

“Services, including telecommunications, gaming, gambling, betting, and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.”

Telecom services, including postpaid and prepaid services governed by the Nigerian Communications Commission, will be subject to a 5% charge, according to a breakdown of the excise duty structure in the law.

Lottery services, gaming, gambling, and betting will all be charged at the same rate.

The bill also establishes criteria for currency transactions, stating that excise duty will apply to any discrepancy between the actual transaction rate and the current Central Bank of Nigeria exchange rate.

Part of the government’s plan to increase non-oil revenue in the face of budgetary challenges is the new tax structure.

Authorities are trying to increase their revenue base because to the telecom and gambling industries’ explosive growth.

Additionally, the measure seeks to guarantee that currency trades match official CBN rates, with any discrepancy subject to excise duty under a model of self-assessment.