| Work Detail |
Stakeholders express views on Africa having the the opportunity to become a major player in the global gas market.
West Africa is endowed with vast yet undeveloped gas resources that could support its industrialisation and the expansion of its power infrastructure.
Expert panels at Africa Oil Week (AOW) explored to what extent gas can anchor new energy corridors in the region and throughout Africa.
Panellists across two different sessions looked at the potential of virtual and physical gas pipelines, small- and large-scale LNG projects, and cross-border gas trade amongst Africa’s fastest-growing economies.??
Professor Emmanuel Ibe Kachikwu, Nigeria’s former Minister of State for Petroleum Resources and former Group Managing Director of the Nigerian National Petroleum Corporation, said governments in West Africa need to establish how much they can spend on infrastructure energy.
He said African governments will need to put together wealth funds instead of continuing to go cap in hand to wealthier nations.
“Governments need to look at their policies… the competition for money is going to be intense… especially with more and more African countries discovering oil and gas.”
Michelle Burkett, Managing Director of the West African Gas Pipeline Company (Wapco), said international project agreements must be in place as it provides a level of fiscal and regulatory consistency.
The company transports gas from Nigeria to Benin, Togo and Ghana through 678 pipelines.
Gas crucial to growth of countries in Africa
Joe Dadzie, CEO of the Ghana National Petroleum Corporation (GNPC), said the country would not have reached the energy access levels without gas.
“The need for gas then becomes critical. Gas procurement is expensive… but you need to have extraction processes that will help you build economies of scale and which makes the process more affordable.
“Without gas, most African countries would struggle .”
Baboucarr Njie, Managing Director of Gambia National Petroleum Corporation, said the country has an opportunity to develop its gas resources.
He said The Gambia has significant gas reserves and that authorities are conducting soil sampling.
“We have joined the Nigerian gas pipeline project… we have a team in Nigeria looking at modalities. To harness gas-to-power… will be instrumental in helping us join the regional electricity market.”
“We have MoUs and bilateral agreements with neighbours [in place] who are helping with training technicians in the gas sector.”
Ibrahima Noba, Technical Advisor-Project Manager Yakaar-Teranga in Senegal, said the country will by end of year/beginning of 2025, be “among the countries to start exporting LNG.”
Noba said it is hoped this will trigger more projects focused on exploration.
“We believe we need to create a regional market as Senegal has vast gas reserves. It is important that we develop an energy market in the region – first to power the energy sector, but also to create some kind of synergy between neighbouring countries to drive lower gas prices, which is key for the region.”
Energy access anchored by natural gas
In a separate session at AOW, panelists agreed that the pipeline of gas projects being developed in Africa has never been stronger.
However, if the continent is to be competitive in an extremely dynamic international gas market, it must ensure that it offers value. This means shaping an offer that meets the financial and environmental sustainability needs of stakeholders.
Africa’s gas investment proposition must be relevant and future-proof, if it is to continue to attract global capital, panelists agreed.
“Natural gas is at the centre of what we are doing in Africa,” said Mario Bello, Head of sub-Saharan Africa Region at Eni.
“It’s the cleanest fossil fuel, producing fewer emissions than coal, so it plays an important role as we transition to renewables.”
Eni enables this through its Floating Liquified Natural Gas (FLNG) projects, particularly in Mozambique and the Republic of Congo.
Bello emphasised the technology’s ability to unlock stranded offshore gas resources, accelerate project timelines, and contribute to both domestic energy security and export revenue.
“Floating LNG is the key to unlocking the region’s gas potential, making it easier and faster to develop offshore resources,” Bello explained.
Financing challenges, opportunities in the gas market in Africa
However, financing these ambitious projects remains a significant hurdle. Paul Eardley-Taylor, Head of Oil & Gas, Southern Africa, at Standard Bank, emphasised the need for bankable projects that address investor concerns, particularly around sovereign risk.
He highlighted the transformative potential of both large-scale LNG projects and smaller, domestically focused gas ventures.
“The impact of these projects in African markets is incalculable,” Eardley-Taylor said, citing the potential for job creation, economic growth, and improved energy access.
He further emphasised the importance of small-scale LNG and helium projects, particularly in markets like South Africa and Namibia.
Equinor’s Senior Vice President for Africa, Nina Birgitte Koch, stressed the importance of a stable investment climate to attract international capital.
She highlighted the need for competitive projects with strong environmental credentials, particularly in reducing carbon emissions. “CO2 is the key criteria,” Koch said. “It’s not just a ‘nice to have’ any more. I don’t think it’s possible to get capital to a big LNG project unless it’s highly competitive when it comes to CO2.”
Cross-border cooperation
The panel also discussed the critical role of technology and regional cooperation in maximising the benefits of Africa’s gas resources.
Gianluca Ciricugno, Africa Director, Enterprise Customer Solution at Baker Hughes, emphasised the need for a long-term vision and collaboration between governments, investors, and technology providers.
“It requires a broader vision, probably government and all the people around the table, with a long-term approach… and not just four-year terms,” Ciricugno urged, highlighting the need for stable regulatory frameworks and a commitment to infrastructure development.
Dr Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), echoed the call for government intervention to address market failures and unlock investment.
He outlined the CEF’s role in enabling critical gas infrastructure projects, such as the Romp pipeline and LNG import terminals.
“We need to solve the market failure,” Dr Mokoka said, highlighting the need for government-backed gas offtake agreements and risk-sharing mechanisms to attract private capital.
Gas development pipeline needs a holistic approach
ExxonMobil’s Executive Director Global, LNG Marketing, Deri Irawan, emphasised the importance of a holistic approach to project development, considering not just the technical and economic aspects but also the social and political landscape.
He highlighted the need for strong partnerships and stakeholder engagement to ensure long-term project success. “It is insufficient to just bring a commodity to the doorstep,” Irawan explained. “You also need to unlock that value chain.”
With Africa on the cusp of a gas revolution, the panel’s message was clear: the continent has the resources, the ambition, and the opportunity to become a major player in the global gas market.
However, success hinges on creating a stable and attractive investment climate, embracing technological innovation, and fostering regional collaboration to ensure that Africa’s gas resources benefit both its people and the planet. ESI |
