Africa, a Field for Gas Players
The African LNG market currently holds 7.1% of proven global gas reserves and is expected to contribute nearly 10% of global production growth through to 2024.
African countries are increasing their efforts to secure stable gas supply and enhance power generation capacity through the development of pipelines, floating liquefied natural gas (LNG) platforms and major gas field projects.
This is evident in recent major gas developments in Mozambique, Ghana and Tanzania, while the emergence of shale gas exploration and the strategic environmental assessment commissioned by the South African government leads the way for exploration.
Earlier this year, Total discovered a potential 1 billion barrels of oil equivalent offshore South Africa’s Brulpadda field. Total owns 45% of the Brulpadda licensing rights, Qatar Petroleum (25%), Canadian Natural Resources (20%), and Main Street (10%). In October, the Department of Mineral Resources announced that it is investigating the shale gas potential in the Karoo. Three companies have been granted exploration permits for shale gas in terms of the Mineral and Petroleum Resources Development Act.
In Mozambique, Total is aiming to expand its Mozambique LNG project with two additional trains, where gas is processed for ease of transportation. Mozambique’s liquefaction and export terminal project is expected to have a major domestic gas component for the country’s consumption to help fuel future economic development. The LNG project will lead to the creation of thousands of jobs for Mozambicans, significant economic growth and gives Mozambique the potential to be one of the world’s largest providers of cleaner energy.
BP and Kosmos Energy announced a successful discovery in the Yakaar-2 appraisal well, located offshore of Senegal, in September. The results are significant enough to consider a second LNG export plant in Senegal, with the Yakaar-2 appraisal well having the potential to support an LNG project that provides large volumes of natural gas. Following the discovery is a licensing round for 12 blocks in Senegal. The licensing round was launched was launched in November by Senegalese Minister of Petroleum and Energy H.E. Mouhamadou Makhtar Cisse, who further stated that there are two objectives for the licensing round; to make new discoveries and to improve the lives of the Senegalese people.
Meanwhile, Tanzania and Ghana have shown success in exploring their natural gas resources for the generation and supply of clean energy to support economic growth and promote regional electricity trade.
In Namibia, government is developing the 442.5 MW Kudu gas-to-power project, the first combined-cycle gas turbine power station of its size in sub-Saharan Africa. The project will facilitate the monetization of the offshore Kudu gas discovery with estimated proven reserves of 3.3 trillion cubic feet. Tlou Energy is making progress in Botswana, with its plan to generate gas-powered electricity at its Lesedi coalbed methane project. The company estimates that the Lesedi project has approximately 3.2 trillion cubic feet of certified contingent gas resources.
Africa’s potential to produce gas has made a significant contribution to the global gas market. Gas Exporting Countries Forum (GECF) member countries’ engagement and collaboration has inspired non-GECF countries to take steps in developing their gas sectors.
Globally, gas production is led by GECF member countries in the Middle East and the U.S., which together account for almost 50% of the growth in gas production and are followed by strong increases in output in both Russia and China.
The 5th GECF Summit will take place in Malabo, Equatorial Guinea on 26-29 November 2019. Gathering at the Summit will be Minister of Petroleum Resources of Nigeria, H.E. Timipre Sylva; Minister of Petroleum and Mineral Resources of Egypt, H.E. Tarek El Molla and Minister of Hydrocarbons of Bolivia, Luis Alberto Sanchez Fernandez, amongs many delegates.
Many of the world’s leading gas production and exploration companies including majors ExxonMobil, Noble Energy and Sonagas, will attend the event. The 2nd International Gas Seminar will also take place in parallel to the summit and includes sessions and presentations from public and private sector gas sector leaders from across the spectrum of natural gas operations, and from across the globe.