By Moses Patience Chat
Developments across Nigeria’s Mozambique and South Africa’s growing natural gas economies took the center stage at the African Energy Chamber- Gazprom International Roundtable on Natural Gas.
The event, which was organized by the African Energy Chamber (AEC) and Russian-based global energy giant, Gazprom, in Johannesburg, South Africa, emphasized that natural gas does not represent a transitionary resource but rather the fuel of the future.
At the event which was themed; “The Benefits of Natural Gas for the Population and the Economy,” a good number of high-level speakers were invited to provide insight into how Russian expertise can accelerate the growth of the natural gas industries in Africa.
During the important discussions, presentations were delivered by high-level representatives from Nigeria, Mozambique, and South Africa all of whom made a strong case for gas-directed investment and strengthened Africa-Russia cooperation.
According to Dahiru Moyi, Advisor to the Minister, Federal Ministry of Finance, Budget and National Planning in Nigeria, “Africa does not have much funding, but we have resources. This is why it is important to come up with new approaches.”
He noted that in West Africa, Nigeria has embarked on an ambitious gas agenda of its own, with projects being driven under the country’s ‘Decade of Gas’ initiative, which is a framework for amplifying investment and development across the entire gas value chain on the back of policy clarity adding that despite offering significant resources, lack of investment has limited development in Nigeria.
Moyi stated that traditionally, Gazprom has not been able to operate in Nigeria due to a lack of policy, a trend which has now been eliminated with the implementation of the Petroleum Industry Act (PIA) in 2021.
In his own word, “Gazprom has the best intentions for Africa, and together, there can be some form of creative financing. We will welcome and be glad to see Gazprom come back to the negotiation table with Nigeria. Before, there was no gas policy in Nigeria or law. We now have the PIA, which is a clear path for how to operate in Nigeria.”
While giving his presentation, Craig Morkel, the Chairman of South Africa Oil and Gas Association said; “Our focus is on policy and planning. The master plan exercise has started and the Department of Mineral Resources and Energy sees this integrated into the broader Integrated Resource Plan.
” It has also identified where demand will be located and how this can be serviced by Liquefied Natural Gas (LNG) as well as the gas-to-power demand. The Master Plan looks at both a bottom-up and top-down approach.”
Morkel added that South Africa looks forward to Gazprom participating in the country and that “we would like you to tell us, what would make South Africa more attractive to you so that we can go to our government and advise. We look forward to working with Gazprom.”
Also, Michel Ussene, the Executive Chairman of Mitra Energy, revealed that Mozambique has already exported its first LNG cargo, which represents a huge milestone for the country.
Gazprom is expected to offer African countries the expertise, finance and technology needed to see large-scale projects into completion as the continent has served as a strategic partner across various other sectors of the economy including agriculture, trade, and commerce, the new focus placed on bilateral energy relations is set to open up new opportunities for investment and development across Africa’s gas space.