NIGERIA, Algeria and Egypt, have been tipped to drive Africa’s Liquefied Natural Gas, LNG, export in the short term.
In its latest report – The State of African Energy 2023 – obtained by Energy Vanguard, African Energy Chamber, AEC, disclosed that the three nations would drive the continent’s export volumes.
It maintained that the development, which would be enhanced by the existing and planned pipelines and other infrastructure, stands to impact Nigeria and other nations.
Specifically, the report, stated: “Africa is in a prime position to increase its natural gas output and benefit from an undersupplied LNG market and demand from Europe. In the near term, however, not many large volumes are expected to come online and overall Africa’s natural gas output is expected to experience a marginal decline from 2022 through 2025.
“Ramp up is expected through the second half of this decade as Mozambique ramps up its LNG output and new gas startups across the continent come online and take the output on an increasing trend.
“But an increased focus on LNG exports is apparent with an expected uptick in near-term LNG flows from the continent. Nigeria and Algeria are expected to drive the majority of these export volumes with additional flows coming from Egypt, Equatorial Guinea, Mozambique and waters off Senegal – Mauritania.”
However, providing an update on Train 7, expected to enhance the LNG export, NLNG Limited, stated: “We are fully committed to our expansion programme: NLNG Train 7 Project which will increase our production capacity by 35 percent from the current 22 million Tonnes Per Annum (mtpa) to 30mtpa.
“This expansion will ensure that Nigeria, with its significant gas reserves (202 tcf of proven gas reserves, the 9th largest in the world) remains a top, reliable and preferred supplier of LNG in the ever-expanding energy world.
“On 27th December 2019, NLNG’s Shareholders took Final Investment Decision (FID) for the Project and on 13th May 2020 awarded the Engineering, Procurement and Construction (EPC) Contracts for the Project to SCD JV Consortium, comprising affiliates of Saipem, Chiyoda and Daewoo.
“On 15th June 2021, the President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR, flagged off the construction of Nigeria LNG Limited’s (NLNG) Train 7 project during the groundbreaking ceremony at the Company’s plant site on Bonny Island, Rivers State.
“The foundation stone was laid on behalf of President Buhari, who flagged the project virtually, by the Minister of State for Petroleum Resources, Chief Timipre Sylva, supported by the Executive Governor of Rivers State, Barr. Nyesom Wike CON, represented by Deputy Governor, Dr. (Mrs.) Ipalibo Harry Banigo; the Amanyanabo of Grand Bonny Kingdom, His Majesty, King Edward Asimini William Dappa Pepple III, Perekule XI; Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari; the Chairman, NLNG Board of Directors, His Majesty Dr. Edmund Daukoru, NLNG’s Managing Director/CEO, Engr. Tony Attah; and NLNG’s Deputy Managing Director, Engr. Sadeeq Mai-Bornu, amongst others.’
It added: “Train 7 means growth for the Nigerian oil & gas industry.
Over USD10 billion is expected to be invested in Train 7 and the upstream scope of the LNG value chain which will open up new development opportunities in the industry and boost Nigeria’s Foreign Direct Investment (FDI) profile as well as the confidence of foreign investors. The Project is anticipated to create more than 12,000 new jobs during the construction stage, and on completion, it will help to further diversify the revenue portfolio of the Federal Government. It will also increase its tax base.”
Similarly, the Executive Chairman of AEC, NJ Ayuk, stated that the LNG remains the cleanest fossil fuel, making it important in this phase of the energy transition.
He said: “Driven by growth in power generation and industrial demand, especially in developing countries that need more energy rather than less, the market for LNG is expected to rise by as much as 50% by 2030. That translates to tens of thousands of jobs at every LNG facility, along with an increase in the economic activities that follow job creation. Being considered a “transitional fuel” is just one of the things LNG has going for it.
“Equally important, LNG is easy to transport long distances from producing basins to markets around the world. With the United States, China, Europe, and much of Asia counting on LNG volumes sourced from Africa as part of their efforts to reduce greenhouse gases, having long-range access is a significant advantage.
“In addition, in areas where there is existing natural gas pipeline infrastructure, such as from northern Africa to Europe, and established export relationships, African LNG is regarded as a ready alternative, especially given the ban on Russian imports. Those exports are bound to improve national, regional, and local economic productivity – and, ultimately, to lift entire families out of poverty.”
He added: “All told, those four sub-Saharan nations – Nigeria, Equatorial Guinea, Angola, and Cameroon – have as much as 33.8 mtpa of LNG export capacity. Add the potential of existing and planned projects in Mozambique, Tanzania, Ghana, and Mauritania-Senegal, and regional capacity could reach 134 mtpa by 2030, if market conditions allow. The continent is forecast to increase its gas output from about 260 bcm in 2022 to as much as 335 bcm by 2029.”