Gazprom and the African Energy Chamber had a conversation about the role natural can play in African gas at the African Energy Week 2023 conference in Cape Town.
Representing both a low-carbon and widely accessible energy resource, natural gas has become a key driver of sustainable development in Africa. The continent's ambitions for energy security and just transition can both be met through the monetisation of gas, and at the African Energy Week (AEW) 2023 conference. Gazprom Export CEO Dmitry Khandoga made this very clear; Khandoga had a conversation on stage with AEC Executive Chairman NJ Ayuk.
Russia-based global energy company Gazprom has long been one of the world's largest gas producers and has effectively monetised resources for the development of the Russian economy. The company is committed to strengthening its contribution and influence in Africa and is seeking partnerships to help grow the African gas market.
According to Khandoga, "Gazprom is not interested in extracting resources from Africa. We are ready to share our solutions for the efficient use of natural gas.
The company has succeeded in monetising Russia's gas resources for the benefit of the country. Khandoga explained that "Satisfying Russian demand for energy has been and always will be Gazprom's highest priority... From the outset, the company has produced stable prices for the market, which has been an important factor in the development of the Russian economy. ."
For Africa, natural gas represents the best solution for achieving energy security and economic growth across the continent. The continent holds more than 620,000 billion cubic feet (tcf) of proven gas resources. Ongoing upstream campaigns are set to increase this figure considerably, with Nigeria alone set to increase proven resource levels from 200 tcf to 600 tcf following the completion of exploratory studies.
"Africa has colossal quantities of natural gas. There is no other place in the world where the use of gas as a clean fuel would open up such a wide range of opportunities", remarked Khandoga. "Gas is efficient for power generation, efficient as a motor fuel and efficient for households, replacing biomass and wood. Gas is still a valuable resource for a range of chemicals required by many industries.
Ayuk asked two questions: why does Gazprom have such a long-term approach to gas if demand is expected to fall and when can we expect a Gazprom-led gas project in Africa.
On the demand side, Khandoga explained that the company "is actually expecting significant increases in gas consumption". We believe in gas and the figures show that it's a good thing to believe in it. The world's economies are voting for gas. Gas is the technology ready to solve every problem in every field, from energy poverty to climate change.
As for the project itself, he said: "We are in discussions with a number of African partners about gas as a fuel, and in the coming months we hope to make an announcement.
For African countries, Gazprom is the partner of choice in promoting their global gas development plans. "We are ready to share our expertise to ensure the continent's energy security," concluded Khandoga.