THE African Oil Week conference, which concludes on Friday, has explored the impact of climate change and environmental considerations as African nations explore their natural gas reserves. Delegates from various East African countries emphasised that the gas reserves off the East Coast of Africa have notably lower carbon content compared to the global average, making the region highly attractive for global investors.
According to Unni Fijaer, Vice President and Tanzania Country Manager for Equinor, a company currently developing offshore natural gas resources in Tanzania, gas derived from the East Coast of Africa boasts approximately one-third of the global average carbon content, along with minimal liquid content. This purity makes it an ideal energy source for meeting global energy demands while significantly reducing carbon emissions.
The conference also addressed the potential for Africa’s abundant natural gas reserves to serve as a transition fuel in the move towards renewable-based energy. Natural gas offers energy security and is a significantly lower carbon emitter compared to oil production for energy.
Africa possesses over 5,000 billion cubic meters of natural gas resources that remain undeveloped, as reported by the International Energy Agency (IEA). These resources have the potential to provide an additional 90 billion cubic meters of gas annually by 2030, while keeping Africa’s share of global carbon emissions at a mere 3.5 percent.
Unni Fijaer emphasised that Africa faces two global challenges: the impact of climate change and the need for expanded access to energy. Natural gas offers a solution to address these challenges effectively.
Drawing on Norway as an example, Fijaer demonstrated how African states with natural gas resources can leverage these assets to foster national development. Energy revenues have the transformative potential to stimulate economic growth and attract further investments.
Ombeni Sifue, Chairman of the Tanzania Petroleum Development Corporation, echoed Fijaer’s sentiments, asserting that African nations have the right to develop their resources to uplift their people, address energy poverty, and benefit from their resources.
Nigeria, in particular, has been increasingly prominent in the African gas sector. Olu Verheijen, Special Advisor to the Nigerian President on Energy, highlighted the significance of oil and gas as a driver of economic opportunity. Despite contributing less than 10 percent to GDP, the oil and gas sector accounts for 90 percent of foreign exchange earnings and 60 percent of fiscal income in Nigeria. The Nigerian administration’s central priority is to harness the country’s resources for economic transformation, calling for substantial investments in the sector.
Africa’s low-carbon natural gas resources are positioned to play a pivotal role in energy transition and economic development on the continent.