Until now, some gas projects in Africa have struggled with a lack of willingness to invest. The risk has often been too high for investors, and there are various reasons for this: Unstable regime Corruption Slow bureaucracy Need for large investments due to lack of infrastructure But now things have changed. Europe’s need for gas, which is not Russian, can make African gas so sought after that the willingness to take risks is greater. Several companies have started signing agreements. The analysis company Rystad Energy believes that gas production in sub-Saharan Africa may double by 2030. It is in Mozambique that production will be by far the largest. The flames come from an oil rig off Angola. The picture was taken in 2003, and Angola has long been our major producer of oil and gas. Equinor has had several projects in the country. Photo: MARTIN BUREAU / AFP Equinor assesses large-scale investment One of the companies is Italian Eni, which signed a cooperation agreement with Congo-Brazzaville and Angola only shortly after the war in Ukraine started. – If large gas producers such as Russia or countries in the Middle East have production problems, then what is the alternative? Qatar is already producing at full capacity, Norway does not have large enough production, Japan is too far away, America has its own market. So maybe the solution can come from Africa. This is what Jean-Richard Itoua says to the German TV channel Deutche Welle. He is the so-called hydrocarbon minister in Congo-Brazzaville. This means that he is responsible for, among other things, the production of natural gas in the Central African country, which is about seven times smaller than the better-known neighboring country Congo-Kinshasa. Norwegian Equinor is also a player in the African gas market, with an agreement recently signed in Tanzania. To Bistandsaktuelt, Equinor emphasizes that, for example, it is only a matter of planning further. This agreement is a successor to previous agreements in support of much bureaucratic curl in Tanzania. But with a new Tanzanian president, there has been a new impetus in the work. – At the same time, it is clear that the EU’s ambition to become less dependent on Russia makes it clear that there is a need for other countries to come on board. There is a need for reliable gas suppliers outside Russia. In such a situation, it may also be more attractive to make new investments, says spokesman for Equinor, Ola Morten Aanestad, to Bistandsaktuelt. A gas plant under construction in Virginia, South Africa. This project will soon be ready, and liquid helium will have to be extracted, among other things. Photo: LUCA SOLA / AFP IEA: May take time to get started Other African countries that have discovered gas reserves are Mozambique, Cameroon, Nigeria, Senegal and Mauritania. Nigeria, Algeria and Egypt are already major producers of natural gas. Two gas supply lines are being planned. Both start in Nigeria. One is planned through the Sahara desert, while the other is planned around the coast of West Africa. The International Energy Agency (IEA) issued a report this week on the outlook for Africa’s energy sector. The report, which has been prepared with support from Norad, shows that the potential for liquefied natural gas is great. Large stocks of natural gas have been identified in Africa with which nothing has been done. But the head of the International Energy Agency, Dr. Fatih Birol, believes that it will take time before this is gas that will solve European problems. – Some of the projects in Africa will take some time. There are some simple solutions, such as exports from Algeria, and maybe a little from Egypt. But the other projects in question may take some time, says Birol to news. Need for gas in industry There may be more reefs in the sea for the African countries that want to start with gas extraction. Because the report from the IEA also refers to the EU’s plan to become less dependent on gas, and that there will thus be less need for imports of gas to Europe after 2030. But there will still be a need for African gas, says the head of the energy agency. He emphasizes that electricity should, as far as possible, come from renewable sources, but that gas will in any case be important in the production of various types of goods. – I really hope that parts of the African gas production are used to meet African needs. Such as for food production, disinfection of water and production of cement and steel, says Birol, who believes that in any case more must be done to get investments in energy projects in Africa. A large oil and gas plant on Bonny Island outside Nigeria. The plant is owned by Shell, which has been criticized for oil spills, and which has also experienced extensive sabotage on oil pipelines. Photo: PIUS UTOMI EKPEI / Afp – Investors see that there is great potential, but the risk of investing is quite high. Therefore, the multilateral banks must step in, so that they reduce the risk and secure financing for African countries. It can again free up private capital, says Birol. He does not believe that African countries will be able to solve their lack of energy if no measures are taken to reduce the risk. – If we just let the market forces control, and do nothing to break in, then I do not think we will see any change in the lack of energy in Africa. In the next few years, the start-up of several gas projects in Africa is planned. Even more are under planning. An overview prepared by Norwegian Rystad Energy shows that the project covers large parts of the continent. In these African countries, a project for the extraction of natural gas has either been launched, or there are concrete plans for this.
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Can Africa have the answer to Europe’s gas shortage? – news Urix – Foreign news and documentaries
