Over the next two decades we will see a significant growth in Africa’s oil and gas sector, with population growth, urbanization, and the emergence of a wealthier middle class in Africa driving demand.
Prashaen Reddy, Partner at global management consultancy Kearney and an expert within the Energy and Process Industries within Africa explains that the recent oil discovery off the coast of Namibia and gas finds in South Africa and Mozambique, could create a greater interest in oil and gas exploration within the Southern Africa region while attracting billions into the Southern African Customs Union (SACU).
A white paper released by Kearney last year outlines the overarching strategic considerations for African utilities to forge a path to sustainability amidst the backdrop of this global paradigm shift. The paper also unpacks the broader macroeconomic trends that are shaping this transition.
According to the International Energy Agency (IESA) over the next five years natural gas will outpace oil and coal by 1.6%. Therefore, a bigger conversation must be had as the availability of power is essential for economic growth, and, even more importantly, for social development.
“This is why we have partnered with the Africa Gas Forum (AGF) at the Africa Energy Indaba next month as its knowledge partner,” adds Reddy. This is a chance where specific opportunities, as well as common issues that affect the whole region such as exploration activity, licensing rounds, the move to gas, investment requirements and other key upcoming projects will be discussed and debated in length.
Why highlight gas?
Natural gas is cleaner and less environmentally hazardous than coal, and cheaper at this point than renewables. It exists abundantly in various forms, beneath the various geological formations of Southern Africa, which is thought to have some of the largest natural reserves of shale gas in the world. Natural gas makes up a significant portion of the energy mix in Africa overall, and it currently accounts for about 7% of SA’s energy supply.
Beyond natural gas, growth in hydrogen, particularly blue and green hydrogen is expected grow significantly in the coming years due to shifts in the industrial, heavy transport and mobility sectors. The Southern African region has significant potential in hydrogen production given the abundance and capacity of renewable resources and can become a major exporter of green H2 products and derivatives to high demand regions in the North and East.
“However, the exploration of this gas is a lengthy and expensive process. Our investments into gas and renewables must be a synchronized collaboration with the coal sector, and not pit one against the other,” he adds.
The Africa Gas Forum is scheduled for the Cape Town International Convention Centre (CTICC) on the 2nd of March 2022, at the CTICC. The event will focus on:
- The Critical Role of Gas in Africa
- Repositioning the Southern Africa Gas Play for Agility in a Dynamic World
- Hydrogen Gas as Greener Energy Alternative, does SA have a right to win
- Multiplying the Commercial Benefits of Gas Reserves
- Developing a Robust Gas Pipeline Network for Southern Africa
For more information visit: The Africa Gas Forum.
