{"id":34831,"date":"2022-07-30T10:27:12","date_gmt":"2022-07-30T10:27:12","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis"},"modified":"2022-07-30T11:06:28","modified_gmt":"2022-07-30T11:06:28","slug":"no-immediate-solutions-to-current-energy-crisis","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis","title":{"rendered":"No immediate solutions to current energy crisis"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Seen purely through the lens of the current energy crisis, the recent visit of Russia\u2019s Foreign minister did not produce something fungible\u2014at least in the short term\u2014as Robert Madoi writes in this explainer.<\/b>
\nWill the visit of Russia\u2019s Foreign Minister impact on the oil shock Uganda is grappling with?<\/b><\/p>\n

It was inevitable that some degree of attention would be devoted to the tonnes of oil from Russia that were expected to remain unsold after the invasion of Ukraine yielded an oil embargo. The volume of Russian seaborne oil exports has not cratered despite\u2014or in fact because of\u2014tightening Western sanctions on Moscow. Preliminary data from Kpler\u2014a shipping analytics firm\u2014indicates that Russia\u2019s shipped crude exports averaged nearly 3.88 million barrels per day (bpd) last month. This represents a startling growth of more than one million bpd on pre-war levels. Trade flows from June 1-15\u2014as per Kpler\u2014put the biggest destinations for Russia\u2019s seaborne crude exports as China and India. Other key importers were Turkey, Poland, the Netherlands and Italy. During last week\u2019s visit to Uganda, Mr Sergei Lavrov\u2014Russia\u2019s Foreign minister\u2014said thus: \u201cWe are selling oil to any country interested in it\u2026if any country so desires, there are no obstacles to that\u2014be it India, China or any African state.\u201d<\/p>\n

So why doesn\u2019t Uganda position itself to get cut-price Russian fuel?<\/b><\/p>\n

Despite facing steep price increases, recent datasets from Kpler and International Energy Agency indicate that Africa does not import Russia\u2019s crude oil and condensate exports. Most of Africa\u2019s imports come from the Middle East, thanks to the Gulf providing a much cheaper shipping route. Since 2011, Uganda has received the vast bulk of its petroleum products via the Kenya route using the open tender system. The capacity sharing ratio for transit was this year whittled down to 55:45 from 60:45. An expert in the oil and gas sector told Saturday Monitor that while \u201cprivate oil companies buy oil from anywhere\u201d in the open tender system, the black gold \u201cmost likely comes from the Gulf and India.\u201d The cut-price Russian fuel\u2014with a discount of about $30(about Shs116,000) per barrel\u2014does not, the expert added, suffice because of the distance between the East African coast and Russia. What\u2019s more, the expert further revealed: \u201cYou would have to refine the oil, which increases the cost [at the pump].\u201d<\/p>\n

Does this mean Uganda has entirely ruled out buying cheap Russian crude?<\/b><\/p>\n

Not entirely. Dr Joseph Muvawala, the executive director of the National Planning Authority (NPA), has proffered a plan to address the cost overruns that have recently plagued consumers at the forecourts. Dr Muvawala believes the recent sledgehammer blow can be cushioned substantially if crude oil is imported from the producing countries and \u201crefined in Mombasa.\u201d The refinery in Kenya has, however, faced strong headwinds, twice changing ownership in the past six years. While the Kenya Pipeline Company-controlled refinery has a crude storage capacity of 230 litres, it has been in stasis since 2013.<\/p>\n

So were the bilateral discussions alive to the fact that energy solutions are of the essence?<\/b><\/p>\n

From the looks of it, yes. Mr Lavrov talked about an undertaking in which both Russia and Uganda \u201csearch for new areas for new ways of cooperation in the energy [sector].\u201d While the Russian Foreign Minister\u2019s comment was nuanced, his country has in recent times held out nuclear technology as a plausible antidote to Africa\u2019s chronic energy poverty. The footprint of Rosatom\u2014a Russian state corporation that specialises in nuclear energy\u2014has grown incrementally in Africa. The company has a working agreement with the government of Uganda. President Museveni recently said plans to embark on building the first-ever Atomic Energy plant in Uganda have been put in gear. There are 19 milestones to be cleared, with pre-feasibility studies on nuclear power programmes already ticked. Focus has since been turned to erecting specialised nuclear institutions.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Seen purely through the lens of the current energy crisis, the recent visit of Russia\u2019s Foreign minister did not produce something fungible\u2014at least in the short term\u2014as Robert Madoi writes in this explainer. Will the visit of Russia\u2019s Foreign Minister impact on the oil shock Uganda is grappling with? It was inevitable […]<\/p>\n","protected":false},"author":84,"featured_media":34830,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-34831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nNo immediate solutions to current energy crisis - Uganda<\/title>\n<meta name=\"description\" content=\"Seen purely through the lens of the current energy crisis, the recent visit of Russia\u2019s Foreign minister did not prod ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No immediate solutions to current energy crisis\" \/>\n<meta property=\"og:description\" content=\"Seen purely through the lens of the current energy crisis, the recent visit of Russia\u2019s Foreign minister did not prod ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-30T10:27:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-30T11:06:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/07\/postQueueImg_1-62e51089d9c53.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"No immediate solutions to current energy crisis\",\"datePublished\":\"2022-07-30T10:27:12+00:00\",\"dateModified\":\"2022-07-30T11:06:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\"},\"wordCount\":673,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/07\/postQueueImg_1-62e51089d9c53.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-immediate-solutions-to-current-energy-crisis\",\"name\":\"No immediate solutions to current energy crisis - 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