EU moves ahead with African gas deals
The African Energy Chamber has expressed its strong support for the European Commission's ongoing plan to strengthen gas cooperation with Africa.
According to the ACS, this decision will help the continent to increase gas production, infrastructure development and exploitation to combat national energy poverty.
The European Union (EU) is moving ahead with plans to strengthen Africa-EU supply chains. This follows the Russian-Ukrainian crisis and supply disruptions, the bloc has stressed the viability of African reserves to meet European demand in which a series of agreements signed between Europe and African governments and national oil companies (NOCs) demonstrate Europe's increased focus on improving energy relations with Africa. Despite Africa's position as an ideal partner for the EU, the continent needs its domestic gas resources before it can use them internationally. Therefore, a mutually beneficial partnership is needed, one in which EU member countries increase their investment in African gas.
EU-Africa agreements expand supply chains
Le 11 avril 2022, Eni a signé un accord avec la Sonatrach algérienne en vertu duquel les deux sociétés renforceront leur coopération dans le développement du gaz tout en tirant parti du gazoduc TransMed/Enrico Mattei pour exporter jusqu’à neuf milliards de mètres cubes (bcm) de gaz naturel liquéfié (GNL) vers L’Europe. De même, le 13 avril 2022, Eni a également signé un accord avec l’EGAS égyptien pour que les deux mènent conjointement des activités d’exploration afin d’augmenter les réserves de gaz du pays dans les blocs existants tout en ciblant de nouvelles superficies dans les régions du delta du Nil, de la Méditerranée orientale et du désert occidental. L’accord verra également l’Égypte étendre ses exportations de gaz vers l’Europe à trois milliards de mètres cubes de GNL à partir de 2022. Entre-temps, en Angola, une déclaration d’intention pour une coopération accrue en matière d’exploration, de production et de commerce de gaz a également été signée à la mi-avril 2022, entre SE Joao Lourenço, président de l’Angola,
Meanwhile, backed by large gas resources, emerging markets across the continent have also been identified as potential partners for the EU. Countries such as Mauritania, Senegal, Ghana, Mozambique, Equatorial Guinea and Tanzania could tap into international markets and increase LNG exports once large-scale projects come online. Projects such as the 3.4 million tonnes per annum (mtpa) Coral Floating LNG (FLNG) in Mozambique, the 2.5 mtpa Fortuna FLNG in Equatorial Guinea and the 10 mtpa Yakaar-Teranga LNG hub in Senegal will be essential to meet regional and international demand.
As the European Commission is expected to launch formal communications with gas-producing countries in Africa and other regions in late May 2022, as part of efforts to increase energy imports by 50 bcm of LNG and 10 bcm of pipeline to halve dependence on Russian energy. -Africa, with its vast gas resources, is well positioned to be Europe's main supplier by the end of 2022.
A mutually beneficial partnership above all
However, despite the potential of African gas to meet EU demand, the continent must first prioritise domestic use. With over 600 million people without access to electricity, the expansion of regional gas trade will be essential to boost socio-economic growth and energy access. Therefore, the African Energy Chamber (AEC), as the voice of the African energy sector, supports the European Commission's plan to strengthen cooperation with African countries, but strongly advocates that Africa should prioritise meeting its own energy needs first.
In this regard, the ACS calls for increased cooperation between Europe and Africa in the development of an African gas market, by increasing African-led investments across the gas value chain. Projects such as the 12.8 mtpa Mozambique LNG project led by TotalEnergies, the 13 trillion cubic feet BirAllah project in Mauritania and the $13 billion trans-Saharan gas pipeline need to be accelerated, with enhanced financial and technical assistance from Europe, as they will play a vital role in enabling Africa to tap into its 620 trillion cubic feet of gas reserves to make energy poverty history.
"While Africa is struggling to attract investment to boost its gas exploration, production, exploitation and monetisation, Europe's stance to increase energy cooperation with Africa offers African countries an opportunity to boost the development of their gas markets. However, Africa should prioritise the exploitation of its gas to meet its own demand first. If Europe wants to benefit from our gas, it must invest in boosting exploration activities, production levels and infrastructure development. It has to be a win-win situation for both sides," says Leon van der Merwe, conference director for African Energy Week.
Source: African Energy Chambers