New Telegraph

Gas Export: ‘Nigeria-Morocco project good for int’l collaboration’

As the gas pipeline project running from Nigeria through Morocco continues to stimulate positive debates, stakeholder in the energy sector, energycapitalpower, has described it as an important project for international collaboration.

In a report on gas transportation from Africa, it observed that the project, scheduled to begin construction in 2024 at an estimated cost of $25 billion, represented one of the world’s most extensive energy projects. According to the report, the project, spanning 5,600 km, to benefit 13 African countries, will provide energy access to around 400 million people along the West African coast. “The pipeline, financially supported by organisations such as OPEC, demonstrates the importance of international collaboration when it comes to infrastructure development. “Not only is it set to facilitate intra-African gas trade, but also deliver gas from Nigeria to Europe, serving as a key link in the global gas supply chain,” the report said. The report, titled “From Africa to Europe: Securing investment for gas export infrastructure,” said abundant natural gas reserves represented an attractive opportunity for monetisation and export, aligning with Europe’s growing demand for cleaner and more energy. This synergy has set the stage for heightened Africa-Europe trade and partnership, with a focus on gas-directed investments. It noted that “assessing the current infrastructure for gas transportation from Africa and Europe reveals a need for foreign direct investment in several strategic areas.

These include the expansion and upgrade of existing pipelines, the establishment of advanced liquefied natural gas (LNG) terminals, and the development of efficient compression and decompression facilities. “Additionally, investment in digital infrastructure for real-time monitoring and optimization is imperative to ensure the reliability and safety of an extended gas transportation network. “Given the expense of gas projects and the need for maintenance and expansion, diverse funding sources are necessary. Large-scale projects typically require investments in the range of millions to billions for successful development.” Referencing other notable projects in this regard, the report said that in Central Africa, Equatorial Guinea – holding 1.5 trillion cubic feet of natural gas reserves – was positioning itself as a regional Gas Mega Hub (GMH) and global exporter. “The country’s Alba Liquefied Petroleum Gas and Punta Europa facilities serve as processing platforms for both domestic and regional gas reserves. Leveraging its strategic location on Africa’s west coast and utilizing the African Continental Free Trade Agreement, Equatorial Guinea’s expanding LNG export networks and potential connection to Europe-bound pipelines align with Europe’s search for alternative gas supplies. “The country also presents opportunities to tap into new export routes, such as the Trans-Saharan gas pipeline, through new gas transport infrastructure linking Africa and Europe.”

Also, it recalled that the $4.6-billion Greater Tortue Ahmeyim (GTA) LNG project, encompassing the Tortue and Ahmeyim gas fields, meanwhile, held approximately 15 trillion cubic feet of recoverable gas reserves. Upon completion, GTA LNG will produce up to 10 million tons of LNG annually. Positioned along the maritime border between Senegal and Mauritania, the project requires substantial investment to support critical infrastructure, including liquefaction, transportation and associated facilities. “In Southern Africa, South Africa’s Virginia Phase 2 project is set to produce commercial quantities of LNG and liquid helium for global export, while the Port of Ngqura floating LNG project will involve the installation of a floating storage and regasification unit, gas-to-power infrastructure, cryogenic pipelines, and a terminal for the processing, storing, on-site exploitation, and distribution of gas acquired from the country’s on– and offshore fields. “Similarly, the Kudu Conventional Gas Development in Namibia’s Orange Basin – set to commence commercial production in 2026 – involves collaboration among the Namibian Government, TotalEnergies, Shell and BW Energy. Representing an $880-million investment, the project is currently in the Front-End Engineering and Design phase, with a Final Investment Decision expected in 2024. European stakeholders can support this venture by investing in essential infrastructure for successful gas extraction, meeting regional energy needs while enabling exports to Europe. “In short, Africa’s leading gas export projects require substantial investments to support the development of critical infrastructure, including extraction facilities, pipelines and associated support systems, highlighting a strategic opportunity for engagement with European financiers, investors and project developers,” the report said.

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