Africa’s western coast may only be 80% complete a new liquefied natural gas project off, but has drawn visits from the leaders of Poland and Germany already the prospect of a new energy supplier.
About 15 trillion cubic feet (425 billion cubic meters) of gas the initial field near Senegal and Mauritania’s coastlines is expected to contain, five times more than what gas-dependent Germany used in all of 2019. Until the end of next year production isn’t expected to start.
By Russia’s war in Ukraine that won’t help solve Europe’s energy crisis. Gordon Birrell, an executive for project co-developer BP, says of the development, “could not be more timely” as Europe seeks to reduce its reliance on Russian natural gas to power factories, generate electricity and heat homes.
“In underpinning the energy security of nations and regions current world events are demonstrating the vital role that (liquid gas) can play”, last month he told an energy industry meeting in West Africa.
Algeria has pipelines already linked to Europe while Africa’s natural gas reserves are vast and North African countries, in other parts of the continent from scaling up exports have long stymied producers and lack infrastructure and security challenges.
They have more to sell to boost their finances established African producers are cutting deals or reducing energy use, but some leaders warn that hundreds of millions of Africans lack electricity and supplies are needed at home.
Nigeria has Africa’s largest natural gas reserves, though it accounts for only 14% of the European Union’s imports of liquefied natural gas, or LNG, that comes by ship, Horatius Egua, a spokesman for the petroleum minister, said. The risk of energy thefts and high costs are faced by projects. By violence from Islamic militants other promising countries like Mozambique have discovered large gas reserves only to see projects delayed.
To secure alternative sources as Moscow has reduced natural gas flows to EU countries, Europe has been scrambling, triggering soaring energy prices and growing expectations of a recession.
This week to discuss a gas price cap the 27-nation EU, whose energy ministers are meeting, is bracing for the possibility of a complete Russian cutoff but has still managed to fill gas reserves to 90%.
Especially those in North Africa and European leaders have flocked to countries like Norway, Qatar, Azerbaijan, where Algeria has a pipeline running to Italy and another to Spain.
With Algeria in July Italy signed a $4 billion gas deal, to boost sales of LNG. Angola also has signed a gas deal with Italy a month after Egypt reached an agreement with the European Union and Israel.
To start production at two Algerian gas fields this week while an earlier agreement allowed Italy’s biggest energy company, it wasn’t clear when flows would start from the July deal because it lacked specifics, analysts said.
Even as they’re dissuaded from pursuing fossil fuels African leaders like Senegalese President Macky Sall want their countries to cash in on these projects. An estimated 600 million Africans lack access to electricity, they don’t want to export it all either.
Sall told the U.N. General Assembly last month “To provide basic energy, improve the competitiveness of its economy and achieve universal access to electricity it is legitimate, fair and equitable that Africa, the continent that pollutes the least and lags furthest behind in the industrialization process should exploit its available resources”.
Algeria is a major supplier and Egypt accounted for 60% of the natural gas production in Africa in 2020 but it can’t offset Russian gas to Europe at this stage, said professor of economics and specialist in energy issues at the University of Algiers, Mahfoud Kaoubi.
“For consumption on the internal market Algeria is 120 billion cubic meters, of which 70.50% is intended”, Kaoubi said. “It’s huge, Russia has an annual production of 270 billion cubic meters”.
According to Tom Purdie, a Europe, Middle East and Africa gas analyst with S&P Global Commodity Insights this year, Algeria is forecast to have piped exports of 31.8 billion cubic meters.
Purdie said “The impact domestic demand could have” given how much gas Algeria uses at home and the key concern here surrounds the level of production step-up that can be achieved.
To export more natural gas to Europe Cash-strapped Egypt also is looking, even regulating air conditioning in shopping malls and lights on streets to save energy and sell it instead.
Prime Minister Mostafa Madbouly says by rerouting 15% of its domestic gas usage for export, state media reported Egypt hopes to bring in an additional $450 million a month in foreign currency.
To keep the country running, more than 60% of Egypt’s natural gas consumption is still used by power stations. Most of its LNG goes to Asian markets.
To Europe via Egypt a new, three-party deal will see Israel send more gas, which has facilities to liquefy it for export by sea. it will help the two countries increase gas production and exploration, The EU says.
In Nigeria, despite years of planning, ambitious plans have yet to yield results. The country exported less than 1% of its vast natural gas reserves last year.
Niger has been stalled since 2009 on a proposed 4,400-kilometer-long (2,734-mile-long) pipeline that would take Nigerian gas to Algeria, mainly because of its estimated cost of $13 billion.
The Trans-Sahara Gas Pipeline would face security risks like Nigeria’s oil pipelines, many fear that even if completed, from militants and vandals which have come under frequent attacks.
Source:- https://blogspacecap.com/europe-turns-to-africa-to-replace-russian-natural-gas-in-bid/
