APA-Johannesburg (South Africa) As the political turmoil between Russia and Ukraine continues, a silent revolution is taking place across Africa as countries tactfully position themselves to plug the anticipated void as Europe tries to reduce reliance on Russian gas.
Africa’s abundant natural gas reserves have the potential to meet global needs and provide a viable alternative to Russia.
According to the Oil and Gas Journal, Africa holds approximately 7.5 percent of the world’s proven natural gas reserves, with significant deposits located in countries such as Nigeria, Mozambique, Tanzania and Egypt.
These reserves have the potential to become a major source of natural gas for Europe and beyond.
Industry experts believe that the development of Africa’s natural gas industry would be a game-changer for the global energy sector.
Many international companies and investors are already taking notice of Africa’s potential as a significant gas supplier and are investing in the development of the necessary infrastructure and technology.
According to the African Energy Chamber (AEC), the Republic of Congo is the latest country to enter the fray, having launched its first liquefied natural gas (LNG) project last month in partnership with Italian energy major Eni.
The US$5 billion project, which would use natural gas from Eni’s Marine XII project off the coast of Congo, is expected to achieve a production capacity of three million tonnes per annum (mmtpa) in 2025.
The operation would comprise two floating LNG (FLNG) plants that would process gas from the Nenè and Litchendjili fields, which are already producing. The FLNG vessels are expected to commence production by 2023 and 2025, respectively.
“This significant move positions Congo as a key player in the global LNG market and serves as a valuable example for other African countries,” said AEC executive chairman NJ Ayuk.
He said LNG represented a critical pathway for harnessing Africa’s gas resources, minimising energy poverty, creating value-added industries, and contributing to the continent’s energy transition.
AEC’s recently released “State of African Energy 2023 Q1 Report” forecasted that the continent’s LNG production would achieve “significant growth in the years to come.”
“As our report notes, the Congo LNG project is one of many moving forward on our continent, contributing to what is expected to be a significant increase in the total LNG export infrastructure capacity, from 80 mmtpa to about 110 mmtpa by 2030, and to more than 175 mmtpa by the end of the next decade,” Ayuk explained.
Other countries contributing to the excitement about an African gas boom include Gabon, Tanzania, South Africa, Nigeria, Angola, Mozambique, Senegal and Mauritania, he said.
Earlier this year, Anglo-French independent Perenco announced plans to construct a US$1 billion LNG project near its Cap Lopez oil terminal in Gabon, which the company acquired from France’s TotalEnergies in 2021.
“After a three-year construction period, capacity at the plant is expected to reach about 700,000 tonnes of LNG annually.”
Tanzania recently completed negotiations with Norway’s Equinor and Britain’s Shell to construct a US$30 billion LNG terminal in East African country’s southeast Lindi region.
This is a highly anticipated project that comes after years of delays since Tanzania first announced the discovery of vast offshore natural gas reserves estimated at 57.54 trillion cubic feet (tcf) in the early 2000s.
South African helium and natural gas producer Renergen launched the first phase of the Virginia Gas Project in Free State province in September 2022, becoming the country’s first commercial LNG plant.
The facility is expected to have a capacity of 50 tonnes of LNG daily, increasing to about 680 tonnes in the second phase.
In Guinea, the government is developing a US$300 million LNG project in partnership with West Africa LNG.
The project would see the construction of an LNG receiving terminal, a liquefaction plant, and an export terminal at the Port of Kamsar on the country’s northern coast.
In Angola, Eni and its New Gas Consortium partners – Cabinda Gulf Oil Company Limited (Chevron’s affiliate in Angola), state-owned Sonangol, BP, and TotalEnergies – have agreed to develop the Quiluma and Maboqueiro gas fields.
The flurry of activities in Africa’s gas exploration and development comes as Europe is looking for alternative sources of energy following the imposition of sanctions against Russia after its invasion of Ukraine in 2022.
JN/APA