African countries would need over $245 billion in fresh investments to harness the vast gas deposits for the provision of gas infrastructures across the African continent.
This is as the $25 billion Nigeria-Morocco Gas Pipeline
(NMGP) project progresses with plans by the 13 countries within the territory
to sign an Inter-Governmental Agreement (IGA) for cross-border cooperation by
this month.
Director general of the National Office of Hydrocarbons and
Mines (ONHYM) – Morocco, Amina Benkhadra made these known yesterday in her
virtual presentation: “Building Strategic Partnership,” at the inaugural Africa
Gas Innovation Summit (AGIS) 2024 in Abuja.
The summit’s Theme Is: “Igniting the Future: Driving
Sustainability in Africa’s Energy Landscape through Gas Technology and
Innovation.”
Benkhadra said the construction of gas pipelines, gas
terminals and gas processing plants presents huge opportunities for investors,
about $100 billion investments are also needed annually to meet electricity
demand on the continent by 2030, noting that the total investment required by
the year 2050 could reach $3 trillion.
“And to unlock Africa’s energy future, we will need to
develop major infrastructure projects but also at the level of nations and
local projects. So we have to raise the ambitions of Africa’s energy strategy
to increase the power generation capacity, to deepen the reforms of our energy
governance, to encourage public partnership, private partnership investment,
mobilise those international investments that we have seen just before and
contribute to development through technology and innovation approaches”, she
added.
Giving a progress report of the NMGP, Benkhadra said Morocco
would continue to work with Nigeria and other African countries to ensure the
delivery of the Nigeria-Morocco Atlantic Gas Pipeline project estimated to cost
over $25 billion.
“Intergovernmental agreement drafted for IGA between all 13
countries to be signed in Q2 2024.”
The 13 concerned countries are Nigeria, Benin, Togo, Ghana,
Côte d’Ivoire, Liberia , Sierra Leone, Guinea, Guinea Bissau, Gambia, Senegal,
Mauritania, and Morocco.
Following the project timeline, she also said “All surveys
awarded to well deserved known contractors, expected to start in late 2024.”
Recall that 30 per cent of the project equity is funded by
primary stakeholders ONHYM and the Nigerian National Petroleum Company Limited
(NNPCL) while 70 per cent is from debt through various investment channels.
Speaking earlier, the minister of state Petroleum Resources
(Gas), Ekperikpe Ekpo said the government would continue to provide the
enabling environment for private sector investments in the gas industry.
Ekpo, who was represented by the permanent secretary in the
ministry, Nicholas Agbo noted that “by embracing gas technology and innovation,
shaping effective policy frameworks, unlocking financing avenues, nurturing
capacity building, and cultivating entrepreneurship, we can ignite the future
and drive sustainability in Africa’s energy landscape.
He said that as Africa navigates the complexities of the 21st
century, the need for a sustainable energy landscape becomes ever more
pressing.
Ekpo also noted that with its abundant natural gas
resources, Nigeria stands at a pivotal juncture and she must play a leading
role in that.
He said the continent has the opportunity to leverage these
resources not only to meet the energy needs but also to drive sustainable
development.
The minister said the transition to a sustainable energy
future demands that everyone embraces innovative technologies and practices
that minimise environmental impact while maximising efficiency and
productivity.
He said this entails investing In cutting-edge research,
promoting the deployment of advanced gas technologies, and encouraging the
adoption of best practices across the industry.
“As we embark on this journey, let us be guided by a shared
vision of progress, inclusivity, and sustainability. Together, we can transform
Africa’s gas sector into a beacon of innovation and a cornerstone of
sustainable development”.
On his part, the group CEO, NNPC Limited, Mele Kyari said
NNPC has in the past few years ramped up investment in the gas sector to ensure
improved supply and utilisation.
Represented by the executive vice president, Gas, Power and
New Energies, Olalekan Ogunleye, Kyari said has made major investments in
floating LNG and gas pipeline projects.
“Indeed, we are currently participating in three mini LNG
projects slated for ground breaking this August. NNPC is also currently leading
the federal government’s auto-gas initiative. Aside from the recent
commissioning of the 5.2mscf per-day Ilasamaja mother-station CNG plant, the
GCEO of NNPC recently announced plans to take FID (final investment decision)
within this year and roll out six additional CNG mother-station plants with
similar capacity”, he added.
Earlier in his welcome address, the chairman, SPE Nigeria
Council, Salahudeen Tahir observed that Africa’s energy landscape is at a
critical juncture, with the imperative need for sustainable solutions.
Tahir explained that “top most challenges in our industry
are financing, technological and skills gap, high costs of oil and gas
production, infrastructure challenges, global push for transition to cleaner
energy as well as security issues. There is no gainsaying ladies and gentlemen
that Africa needs to urgently innovate for the benefit of our industry, our
respective economies and our citizenry”.