Sudan Expands Power Production, Prepares for Peaceful Nuclear Energy

A general view shows a section of the plant at the Dar Petroleum Operating Company oil production operated in Palogue oil field within Upper Nile State in South Sudan, September 7, 2016. REUTERS/Jok Solomun REUTERS/Jok Solomun
A general view shows a section of the plant at the Dar Petroleum Operating Company oil production operated in Palogue oil field within Upper Nile State in South Sudan, September 7, 2016. REUTERS/Jok Solomun REUTERS/Jok Solomun
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Sudan Expands Power Production, Prepares for Peaceful Nuclear Energy

A general view shows a section of the plant at the Dar Petroleum Operating Company oil production operated in Palogue oil field within Upper Nile State in South Sudan, September 7, 2016. REUTERS/Jok Solomun REUTERS/Jok Solomun
A general view shows a section of the plant at the Dar Petroleum Operating Company oil production operated in Palogue oil field within Upper Nile State in South Sudan, September 7, 2016. REUTERS/Jok Solomun REUTERS/Jok Solomun

Sudan announced on Wednesday its plans to set up two brand new power plants in the national free zone and Port Sudan just off the Red Sea coast.

Undertook by Germany’s Siemens, both plants are said to produce 850 megawatts and are scheduled to be in service before summer 2018.

Sudan has also announced that the first and second divisions of the three-thousand-megawatts power plant, the Upper Atbara and Setit Dam Complex, are effectively feeding the national grid.

The third unit is currently under construction and the project will be completed by the end of 2017.

Observers predict that the country's power production will double this year with the ongoing expansions.

Sudan is also expected to sign an agreement with the International Atomic Energy Agency (IAEA) in Moscow next month, allowing Khartoum to take full advantage of the peaceful uses of nuclear energy, such as electricity production.

Sudan has completed preliminary surveys to locate the nuclear power plant outside Khartoum.

The increase in power demand in Sudan is 14 percent per year against an annual output of 3,000 MW. The country imports from Ethiopia 250 megawatts to meet the growing demand for electricity in the country.

Sudan is currently implementing a plan for 2031 which is aimed at meeting the African country’s growing demand for power, including the construction of dams, combustion plants with petroleum fuels and renewable energies. It lately peruses employing peaceful nuclear plants to upgrade its energy output.

More so, Sudan has taken many steps towards enabling its peaceful nuclear activity program, especially with regard to nuclear safety and security.

A law has been passed to regulate radiation. Under this law, an independent national control body has been established.

Five years ago, Sudan began to make use of nuclear energy for peaceful aims and agreed earlier this year with Russia's Rosatom, a Russian government nuclear power company, to cooperate in this field.



Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar rose for a second day on Wednesday on higher US bond yields, sending other major currencies to multi-month lows, with a report that Donald Trump was mulling emergency measures to allow for a new tariff program also lending support.

The already-firm dollar climbed higher on Wednesday after CNN reported that President-elect Trump is considering declaring a national economic emergency as legal justification for a large swath of universal tariffs on allies and adversaries.

The dollar index was last up 0.5% at 109.24, not far from the two-year peak of 109.58 it hit last week, Reuters reported.

Its gains were broad-based, with the euro down 0.43% at $1.0293 and Britain's pound under particular pressure, down 1.09% at $1.2342.

Data on Tuesday showed US job openings unexpectedly rose in November and layoffs were low, while a separate survey showed US services sector activity accelerated in December and a measure of input prices hit a two-year high - a possible inflation warning.

Bond markets reacted by sending 10-year Treasury yields up more than eight basis points on Tuesday, with the yield climbing to 4.728% on Wednesday.

"We're getting very strong US numbers... which has rates going up," said Bart Wakabayashi, Tokyo branch manager at State Street, pushing expectations of Fed rate cuts out to the northern summer or beyond.

"There's even the discussion about, will they cut, or may they even hike? The narrative has changed quite significantly."

Markets are now pricing in just 36 basis points of easing from the Fed this year, with a first cut in July.

US private payrolls data due later in the session will be eyed for further clues on the likely path of US rates.

Traders are jittery ahead of key US labor data on Friday and the inauguration of Donald Trump on Jan. 20, with his second US presidency expected to begin with a flurry of policy announcements and executive orders.

The move in the pound drew particular attention, as it came alongside a sharp sell-off in British stocks and government bonds. The 10-year gilt yield is at its highest since 2008.

Higher yields in general are more likely to lead to a stronger currency, but not in this case.

"With a non-data driven rise in yields that is not driven by any positive news - and the trigger seems to be inflation concern in the US, and Treasuries are selling off - the correlation inverts," said Francesco Pesole, currency analyst at ING.

"That doesn't happen for every currency, but the pound remains more sensitive than most other currencies to a rise in yields, likely because there's still this lack of confidence in the sustainability of budget measures."

Markets did not welcome the budget from Britain's new Labor government late last year.

Elsewhere, the yen sagged close to the 160 per dollar level that drew intervention last year, touching 158.55, its weakest on the dollar for nearly six months.

Japan's consumer sentiment deteriorated in December, a government survey showed, casting doubt on the central bank's view that solid household spending will underpin the economy and justify a rise in interest rates.

China's yuan hit 7.3322 per dollar, the lowest level since September 2023.