Buyers crash Nigeria’s multi-million dollars liquefied gas demand - NEW TELEGRAPH
BY Adejumo kabir
Buyers at the weekend deferred deliveries of multi- million dollars Liquefied Natural Gas (LNG) from Nigeria, one of Europe’s key LNG suppliers. This cause by crater in the coronavirus pandemic has seen demand for Nigeria’s cargoes in Europe crash, which has created a fleet of tankers carrying LNG that are now just floating storage, according to commodity tracking firm Kpler, cited by an online news portal, Bloomberg.
Over the past two months, Nigeria continued to send LNG cargoes to one of its main markets, Europe, but with many major European economies in lockdown, demand has plunged, and customers with options to defer have been postponing the offloading of the cargoes.
LNG prices at their lowest in years have forced traders to keep LNG on the tankers, waiting for demand to improve. But prices are not set to improve in the summer, according to Manas Satapathy, managing director for energy at Accenture. “The worst is yet to come, we will likely see super low prices in late June, July, August,” Satapathy told Bloomberg.
The crash in LNG demand in Europe during the pandemic and the high storage levels will likely mean that the continent will struggle to act as a sponge to absorb excess LNG supply this year as it did in 2019, Rystad Energy said in an analysis last week. Last year, Europe became the “de facto global LNG sink,” when milder winter in Northeast Asia slowed down LNG demand growth there, the energy research firm said.
In 2019, Europe’s total LNG imports surged by 80 per cent compared to 2018, while in January and February 2020 – before the European lockdowns and when the coronavirus hit Asia – Europe’s LNG imports jumped 35 per cent, thanks to the UK, Spain, and Belgium.
“We still don’t have an end date for when Europe will completely re-emerge from lockdown, and the impact will probably be deeper coming into the summer months. “With gas storage tanks already almost filled to the brim, Europe’s capacity to import and actually use the same amount of LNG as in 2019 seems like a tall order, especially if we see another mild winter,” Rystad Energy said.
Diplomatic intrigues stall evacuation of Nigerians from Canada - THE GUARD
By Wole Oyebade, Bridget Chiedu Onochie and Joke Falaju, Abuja
• May Arrive Monday
• Evacuees From Thailand To Pay N162.3million For Hotel Accommodation, Feeding
• ‘Govt. Does Not Have Capacity To Foot The Bill’
Diplomatic intrigues and conflict of interest over the choice of operating carrier might explain why the scheduled evacuation of 200 Nigerians from Canada was stalled last Wednesday. While the Nigerian government-designated local carrier, Air Peace, for the special operation, the Canadian government preferred Ethiopian Airlines, though at more expensive fares for the travellers.
Meanwhile, Nigerian evacuees from Thailand are expected to pay about N162.3million for hotel accommodation and feeding. The Guardian learnt that each of the evacuees was expected to pay N240, 000 as hotel accommodation for the period of 16 days and N57, 600 for feeding for the same period, making a total of N297, 600.
The federal government, after the arrival of the evacuees at the Nnamdi Azikiwe International Airport in Abuja, had handed them over to the Nigeria Centre for Disease Control (NCDC) to properly quarantine for 14 days period to ensure they are COVID-19 free.
Although the government did not disclose where the evacuees were being quarantined, The Guardian learnt that the federal government had negotiated with some hotels in the Federal Capital Territory (FCT) to accommodate them, including Bolingo Hotel (300 rooms); Apo Apartments (61 rooms); Chida International Hotel (200 rooms); Belvior Hotel (30 rooms) and Barcelona Hotels (300 rooms).
The evacuees had been concerned about who was to pay their hotel bills, but a letter by the Nigerian Embassy in Bangkok, Thailand, dated May 14, this year and signed by the Head of Chancery, Nicholas Uhomoibi, read: “I am directed to bring to your attention that due to the measure that are beyond control of the COVID-19 local organising team in Nigeria, all evacuees going to Nigeria henceforth are to now pay for the quarantine, isolation, accommodation centre or hotel before departure and arrival in Nigeria.
“In this regard, all prospective evacuees are to take note of the negotiated rate- accommodation, N15, 000 for 16 days, equals N240, 000; feeding is N3, 600 multiplied by 16 days, making N57, 600, making a total of N297, 600.”
The letter urged the evacuees to be informed that the embassy had been instructed not to airlift any evacuees who did not pay the fees. The Ministry of Foreign Affairs, which confirmed the government position yesterday in Abuja, stated that the decision was due to its inability to foot the bill. “The explanation for that is that the government does not have the capacity to foot the bill,” stated a ministry source, who confirmed the amount.The ministry, however, said the government was still negotiating to see how the amount could be reduced, as it was seeking cheaper hotels for the prospective evacuees.
The Guardian yesterday reported that Air Peace was denied landing right permits; hence had to delay the evacuation exercise till Nigerian and Canadian governments resolved the grey areas. But sources from the Ministry of Foreign Affairs yesterday disclosed that the Canadian High Commission had opened talks with Ethiopian Airlines for the evacuation of Nigerians. Ethiopian Airlines (ET) has been airlifting Canadian citizens from different parts of Africa lately. The federal government, through the ministries of Aviation and Foreign Affairs, has, however, waded into the matter, insisting that the Nigerian carrier has to operate the flight, in tandem with its new position that all evacuation flights must be conducted by Nigerian carriers. It was learnt that ET is charging $2, 500 per voluntary returnee for the flight already planned for Monday, May 18, while Air Peace charged $1,134 for the same trip. To date, 319 passengers have paid to the Nigerian airline, which has concluded plans to operate full flight to the North American country.
Some of the Nigerians, who had booked and paid Air Peace for the flight, were already complaining about the insistence of the Canadian High Commission to choose a foreign airline over a Nigerian carrier.
Shocked by the decision of the Canadian High Commission, an official of the Nigerian carrier said Air Peace had successfully flown to 40 countries, including Canada, the United States (US) and the United Kingdom (UK), noting that it was the airline that evacuated Israeli citizens from Nigeria in March. 2
The official added: “We have done many international flights, including landing in Canada. We have made 19 flights to the US since 2014. We have flown to Tel-Aviv several times and in March, we evacuated over 200 Israelis from Nigeria back during this COVID-19 lockdown. We have scheduled flight operations to United Arab Emirates (UAE), UK, Ireland, China, Turkey, Germany, Iceland, Switzerland and other countries.
“We have IATA Operational Safety Audit (IOSA) certification and we are a member of IATA. We have also evacuated Nigerians from South Africa during the xenophobic attack of Africans there.”
Reacting to the incident, former director general of the Nigerian Civil Aviation Authority (NCAA), Benedict Adeyileka, described the action of the Canada High Commission as political, urging the federal government to stand firmly on its position that a Nigerian carrier should conduct the airlift.
“I am a nationalist to the core. Anything Nigerian is good enough as long as it is qualified to carry out the operation, and Air Peace has international operation experience.
“I insist that the Nigerian government should put its foot down on this. Nigerian carriers should not be stopped from conducting international operations,” he said
Private Creditors Form Group to Negotiate Africa Debt Relief - BLOOMBERG
By Alonso Soto
- Creditors warn against blanket approach to relief on continent
- Group represents $9 trillion of assets under management
Private creditors representing more than $9 trillion of assets under management formed a group to negotiate debt relief for African nations, warning of the risks of a blanket approach to the process.
The so-called Africa Private Creditor Working Group will assist African countries and other debt providers to cushion the economic impact of the coronavirus pandemic on the continent, it said in a statement Friday. The group represents 25 asset managers and institutions that financed countries and corporates via Eurobond, syndicated loans and trade finance.
African countries are asking official and private creditors to temporarily suspend $44 billion in debt payments this year in order to channel scarce resources to contain the spread of the coronavirus. Some investors are concerned that countries could unilaterally halt payments, locking them out of debt markets and hurting creditors as well, said Lars Bane, director of Farallon Capital Europe LLP and a member of the group.
“There is a bit of concern in terms of a growing narrative pushing for this blanket standstill and even more concerning, debt forgiveness in Africa,” Bane said in a phone interview. “There is genuine consensus that you do have to have a case-by-case approach to have the best outcome for both the borrowers and lenders.”
The group’s members include Aberdeen Asset Management Plc, Amia Capital LLP, Ninety One U.K. Ltd., Pharo Management LLC and Greylock Capital Management LLC.
An understanding with investors that clarifies debtors’ positions on future payments could reduce sovereign-bond yields and help governments return to international capital markets soon. “Until this issue is clarified, none or very few African issuers will have market access in the near future,” Bane said.
Specter of Default
The pandemic has raised the specter of a slew of debt defaults in developing countries that had to shut down their economies to try and stop the spread of the virus. Demand for the raw materials many of the nations produce has plummeted.
For debt-relief advocacy group Jubilee Debt Campaign, private creditors will have to take losses as poor countries ramp up spending on health and social protection measures.
“Private creditors lent at high interest rates to poor countries because they claimed loans were high-risk,” said Tim Jones, head of policy at the campaign. “The risk has come home to roost and lenders need to accept they cannot make large profits from these loans.”