A new liquefied natural gas project off Africa’s western coast may only be 80% complete, but already the prospect of a new energy supplier has drawn visits from the leaders of Poland and Germany.<\/p>\n
The initial field near Senegal and Mauritania\u2019s coastlines is expected to contain about 15 trillion cubic feet (425 billion cubic meters) of gas, five times more than what gas-dependent Germany used in all of 2019. But production isn’t expected to start until the end of next year.<\/p>\n
That won’t help solve Europe’s energy crisis triggered by Russia’s war in Ukraine. Still, Gordon Birrell, an executive for project co-developer BP, says the development \u201ccould not be more timely” as Europe seeks to reduce its reliance on Russian natural gas to power factories, generate electricity and heat homes.<\/p>\n
The initial field near Senegal and Mauritania\u2019s coastlines is expected to contain about 15 trillion cubic feet (425 billion cubic meters) of gas, five times more than what gas-dependent Germany used in all of 2019. But production isn’t expected to start until the end of next year.<\/p>\n
That won’t help solve Europe’s energy crisis triggered by Russia’s war in Ukraine. Still, Gordon Birrell, an executive for project co-developer BP, says the development \u201ccould not be more timely” as Europe seeks to reduce its reliance on Russian natural gas to power factories, generate electricity and heat homes.<\/p>\n
Italy signed a $4 billion gas deal with Algeria in July, a month after Egypt reached an agreement with the European Union and Israel to boost sales of LNG. Angola also has signed a gas deal with Italy.<\/p>\n
While an earlier agreement allowed Italy’s biggest energy company to start production at two Algerian gas fields this week, it wasn’t clear when flows would start from the July deal because it lacked specifics, analysts said.<\/p>\n
African leaders like Senegalese President Macky Sall want their countries to cash in on these projects even as they\u2019re dissuaded from pursuing fossil fuels. They don\u2019t want to export it all either \u2014 an estimated 600 million Africans lack access to electricity.<\/p>\n
\u201cIt 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 to provide basic energy, improve the competitiveness of its economy and achieve universal access to electricity,\u201d Sall told the U.N. General Assembly last month.<\/p>\n
Algeria is a major supplier \u2014 it and Egypt accounted for 60% of the natural gas production in Africa in 2020 \u2014 but it can’t offset Russian gas to Europe at this stage, said Mahfoud Kaoubi, professor of economics and specialist in energy issues at the University of Algiers.<\/p>\n
\u201cRussia has an annual production of 270 billion cubic meters \u2014 it\u2019s huge,” Kaoubi said. \u201cAlgeria is 120 billion cubic meters, of which 70.50% is intended for consumption on the internal market.”<\/p>\n
This year, Algeria is forecast to have piped exports of 31.8 billion cubic meters, according to Tom Purdie, a Europe, Middle East and Africa gas analyst with S&P Global Commodity Insights.<\/p>\n
\u201cThe key concern here surrounds the level of production step-up that can be achieved, and the impact domestic demand could have” given how much gas Algeria uses at home, Purdie said.<\/p>\n
Cash-strapped Egypt also is looking to export more natural gas to Europe, even regulating air conditioning in shopping malls and lights on streets to save energy and sell it instead.<\/p>\n
Prime Minister Mostafa Madbouly says Egypt hopes to bring in an additional $450 million a month in foreign currency by rerouting 15% of its domestic gas usage for export, state media reported.<\/p>\n
More than 60% of Egypt\u2019s natural gas consumption still is used by power stations to keep the country running. Most of its LNG goes to Asian markets.<\/p>\n
A new, three-party deal will see Israel send more gas to Europe via Egypt, which has facilities to liquefy it for export by sea. The EU says it will help the two countries increase gas production and exploration.<\/p>\n
In Nigeria, ambitious plans have yet to yield results despite years of planning. The country exported less than 1% of its vast natural gas reserves last year.<\/p>\n
A proposed 4,400-kilometer-long (2,734-mile-long) pipeline that would take Nigerian gas to Algeria through Niger has been stalled since 2009, mainly because of its estimated cost of $13 billion.<\/p>\n
Many fear that even if completed, the Trans-Sahara Gas Pipeline would face security risks like Nigeria’s oil pipelines, which have come under frequent attacks from militants and vandals.<\/p>\n
The same challenges would hinder increased gas exports to Europe, said Olufola Wusu, a Lagos-based oil and gas expert.<\/p>\n
\u201cIf you look at the realities on ground \u2014 issues that have to do with crude oil theft \u2014 and others begin to question our ability to supply gas to Europe,\u201d he said.<\/p>\n
Wusu urged pursuing LNG, calling it the \u201cmost profitable” gas strategy so far.<\/p>\n
Even that isn’t without issues: In July, the head of Nigeria LNG Limited, the country\u2019s largest natural gas firm, said its plant was producing at just 68% of capacity, mainly because its operations and earnings have been stifled by oil theft.<\/p>\n
In the south, Mozambique is slated to become a major exporter of LNG after significant deposits were found along its Indian Ocean coast in 2010. France’s TotalEnergies invested $20 billion and started work to extract gas that would be liquefied in a plant it was building in Palma, in the northern Cabo Delgado province.<\/p>\n
But Islamic extremist violence forced TotalEnergies to indefinitely scupper the project last year. Mozambican officials have pledged to secure the Palma area to allow work to resume.<\/p>\n
Italian firm Eni, meanwhile, pressed ahead with plans to pump and liquefy some of its gas deposits discovered in Mozambique in 2011 and 2014. Eni established a platform in the Indian Ocean 50 miles (80 kilometers) offshore, away from the violence in Cabo Delgado.<\/p>\n
It’s the first floating LNG facility in the deep waters off Africa, Eni says, with gas liquefaction capacity of 3.4 million tons per year.<\/p>\n
The platform liquefied its first gas on Oct. 2, according to Africa Energy, and the first shipment is expected to depart for Europe in mid-October.<\/p>\n
AP reporters Chinedu Asadu in Abuja, Nigeria; Aya Batrawy in Dubai, United Arab Emirates; Samy Magdy in Cairo; Andrew Meldrum in Johannesburg; and Colleen Barry in Milan contributed.<\/p>\n","protected":false},"excerpt":{"rendered":"
European leaders are turning to Africa for more natural gas as they try to replace Russian energy amid the war in Ukraine<\/p>\n","protected":false},"author":12963,"featured_media":19980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,15],"tags":[7,26,25],"class_list":{"0":"post-19983","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"category-politics","9":"tag-apie-project","10":"tag-news","11":"tag-politics"},"yoast_head":"\n