Nigeria, others leading gas investors in Africa
Nigeria, Egypt, Mauritania, Mozambique, South Africa (SA) and Senegal have been identified as leading in investments in Africa’s liquefied natural gas (LNG).
According to representatives of the Africa Oil & Power Conference, a high profile affair for the continent’s energy industry, Africa is an exciting frontier in the global natural gas sector.
Their research indicates that the continent holds 7.1% of proven global gas reserves and is expected to contribute nearly 10% of global production growth through to 2024.
On the demand side, Africa’s large, urbanized and industrialized societies of the future will require reliable and sustainable power generation.
With greenfield investments in Nigeria, Egypt, Mozambique and elsewhere reaching nearly $103 billion this year, it is clear that liquefaction is viewed as the most profitable strategy for realizing Africa’s gas potential.
A greenfield investment (GI) refers to a type of foreign direct investment (FDI) where a company establishes operations in a foreign country.
Nigeria accounts for over 50% of current LNG production capacity on the continent. With October 2019 seeing 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. 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 the first half of 2018.
In June, international mining company, Anadarko gave its final approval for a $20 billion gas liquefaction and export terminal in Mozambique.
Meanwhile, it has emerged that in terms of African demand for LNG, South Africa, the most industrialized economy on the continent, could be an influential market.
Investors are also paying attention to smaller projects in countries like Mauritania, Senegal and Cameroon.
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