Nigeria, Egypt, South Africa, Mozambique, Senegal, and Mauritania have been identified as African countries that will spur investment in Liquefied Natural Gas (LNG) on the continent to about $103 billion this year.
Holding about 7.1 per cent of proven global gas reserves, a report yesterday, from the 5th Gas Summit in Malabo, Equatorial Guinea, said the continent will contribute nearly 10 per cent of global LNG production growth through to 2024.
It added that on the demand side, Africa’s large, urbanised and industrialised societies of the future would require reliable and sustainable power generation.Citing greenfield investments in Nigeria, Egypt, Mozambique, and other locations on the continent reaching nearly $103 billion this year, Africa was urged to focus on liquefaction as the most profitable strategy for realising its gas potential.
According to the report, Nigeria alone accounts for over 50 per cent of current LNG production capacity on the continent as the country awaits a final investment decision on the $12 billion expansion of the country’s liquefaction plant at Bonny Island in Rivers State.
In North Africa, Egypt has successfully re-established itself as an important investment destination following the downturn in the gas sector in 2014, it added.
The report said: “In the first half of 2019, the behemoth Zohr offshore gas field produced 11.3 billion cubic meters – 3.6 times more than it did in 1H2018. The success is set to continue with reports earlier this year of a new Eni discovery in the Nour North Sinai Concession/
“Evaluation is ongoing but there are hopes that the new field could rival the Zohr, which would open significant opportunities for investment in new liquefaction plants. In February, the Egyptian Natural Gas Holding Corporation awarded five new gas exploration concessions to Shell, ExxonMobil, Petronas, DEA and Eni in which it expects to see 20 wells drilled.
“In June, Anadarko gave its final approval for a $20 billion gas liquefaction and export terminal in Mozambique. The Area 1 project is the single largest LNG project ever approved in Africa. And, it could be closely followed by Exxon’s $14.7 billion Area 4 development – FID is expected before the end of the year.”
It added that Political stability and access to East Asian markets could see Mozambique become a major global gas market over the next decade.