Adaobi Rhema Oguejiofor
The African Energy Chamber (AEC), an energy advocacy group, has revealed that African natural gas is the key to making energy poverty a historical issue in the continent by 2030.
This was disclosed on Thursday in Johannesburg, South Africa, during a panel discussion at the AEC-Gazprom International Roundtable on Gas, which was organized by AEC and Gazprom, a Russian energy giant.
The panel discussion focused on how countries such as Russia can serve as a benchmark for the ways African nations can utilize their gas for economic growth. It also examined how Africa can leverage partnerships with Russia in order to usher in a new era of electrification, with the speakers drawing attention to how the continent can monetize and maximize its resources, specifically in the age of the energy transition.
During the discussion, it was revealed that despite holding up to 620 trillion cubic feet (tcf) of natural gas reserves, much of Africa remains in the dark. According to panelists, natural gas has been identified as the solution for the continent, and Gazprom is the partner of choice as countries accelerate large-scale projects aimed at monetizing resources.
While speaking during the discussion, the Executive Chairman and Founder of Raise Africa Investment (RAI), Nosizwe Nokwe-Macamo, said that “The world wants Africa to transition and expects us to move at the same velocity. We are not at the same stage of development, and therefore, we cannot be expected to move at the same speed.”
The Manager of New Ventures and Development at Red Sky Energy, Serge Toulekina, who also spoke, said that three areas need to be addressed when it comes to gas.
In his own words, “you need to have the right regulatory framework, the infrastructure, and the market. In the case of central Africa, the market is there. If you look at the electricity problem in most of these countries, it is clear that with gas-to-power.
“Without the regulatory framework, it will be difficult. Some laws need to be drafted and this can be done by looking into what other people have done. You need to make sure you have the right regulatory framework to attract the right investment.”
Toulekina added that with the right regulatory framework, African countries are well-positioned to drive long-term development that focuses on electrification, industrialization, and revenue generation even though key challenges regarding financing persist.