JOHANNESBURG/South Africa: The African Energy Chamber (AEC) and Russian-based global energy giant Gazprom hosted an international roundtable on natural gas in Johannesburg, where various speakers highlighted that natural gas is not merely a transitionary resource but rather the fuel that will drive Africa’s future. High-level representatives from Mozambique, South Africa, and Nigeria delivered presentations during the event, advocating for increased gas-directed investment and strengthened cooperation between Africa and Russia.
South Africa, despite being a relatively new player in the gas market, experienced two significant offshore basin discoveries in 2019, revealing the country’s promising gas industry potential. To expedite resource development and achieve national growth objectives, the South African government is actively working on implementing a Gas Masterplan. Craig Morkel, Chairman of the South Africa Oil and Gas Association, emphasized the government’s focus on policy and planning. Morkel stated, “The Masterplan exercise has started, and the Department of Mineral Resources and Energy intends to integrate it into the broader Integrated Resource Plan. It also identifies the areas of demand and how this demand can be met through Liquefied Natural Gas (LNG) and gas-to-power projects. The Masterplan takes both a bottom-up and top-down approach.”
Morkel expressed anticipation for Gazprom’s involvement in South Africa and sought suggestions on how to make the country more attractive to the energy giant. He emphasized the importance of collaboration, stating, “We look forward to working with Gazprom and would like you to tell us what would make South Africa more appealing to you, so that we can convey the message to our government. We value the opportunity to cooperate with Gazprom.”
Across the continent, several countries have embarked on ambitious natural gas projects aimed at monetizing resources, enhancing energy security, promoting industrialization, and driving long-term socioeconomic growth. Mozambique, for example, is at the forefront of several large-scale liquefied natural gas (LNG) developments. Michel Ussene, Executive Chairman of Mitra Energy, highlighted a significant milestone for Mozambique, stating, “Our country has already exported its first LNG cargo, representing a huge achievement.”
However, Ussene pointed out that with gas reserves located over 2,200 kilometers from Mozambique’s capital city, Maputo, innovative solutions are required to maximize the gas potential. He cited Gazprom as an exemplary model, given its success in bringing gas into the Russian economy. Ussene found it intriguing that Gazprom sells most of its gas within the country rather than exporting it, stating, “This is a gamechanger. Knowing that Gazprom sells more gas domestically can increase access and create job opportunities.”
In West Africa, Nigeria has embarked on its own ambitious gas agenda under the “Decade of Gas” initiative, which provides a framework for stimulating investment and development across the entire gas value chain through policy clarity. Despite possessing significant gas resources, Nigeria has faced limited development due to inadequate investment. Dahiru Moyi, Advisor to the Minister of Federal Ministry of Finance, Budget and National Planning, acknowledged the financing challenge faced by Africa, saying, “Africa does not have abundant funding, but we have resources. That is why it is crucial to explore new approaches.”
Moyi highlighted the lack of a gas policy and legal framework in Nigeria that previously hindered Gazprom’s operations. However, with the implementation of the Petroleum Industry Act (PIA) in 2021, the obstacles have been eliminated. “Gazprom has the best intentions for Africa, and there is potential for creative financing,” said Moyi. He welcomed Gazprom’s return to the negotiation table with Nigeria, emphasizing that the PIA provides provides a clear path for operating in the country.
Gazprom’s entry into the African energy landscape offers expertise, financing, and technology required to drive large-scale projects to completion. While Africa has been a strategic partner across various sectors such as agriculture, trade, and commerce, the renewed focus on bilateral energy relations is poised to unlock new investment and development opportunities in Africa’s gas sector.
