Africa’s economy thrives mainly from agriculture, trade and human resource. For years these three have dominated Africa’s market, but in recent years researchers have found that Africa’s abundant natural resource also includes Natural gas. This discovery later revolutionized Africa’s economy as a select few countries have significantly profited from its exportation and use.
Here is an outlook demonstrating how Africa’s natural gas production is an energy solution that can propel its entire economy to new heights.
Understanding Natural gas and its uses
Before further elaborating on how Africa’s natural gas resources are the envy of other continents, we must first understand the context behind this energy solution and why it is so important.
What is Natural Gas
Natural gas is a mixture of gas which is potent in hydrocarbon. These gases(methane, nitrogen, carbon dioxide, etc.) are naturally found in the air. However, they are mainly far less potent to process. Natural gas is also a type of petroleum commonly associated with crude oil.
Natural gas is an energy solution for electricity generation, heating, cooking and fueling the vehicle. It is plausible to term it as a core energy solution that has powered the earth and all existing nations for some time. Anyone having access to its resources would hold significant power. Today it is still a primary resource, but with the discovery of renewable energy, such as solar, its hold on the world’s progress slightly lessened.
Natural gas is often found dissolved in oil at high pressures in a reservoir and can exist as a gas cap above the oil.
Initially, natural gas was the leading energy solution that gave way to the 1st,2nd and 3rd industrial revolutions. Unfortunately, with the 4th industrial age, new and cleaner energy solutions have given way to various inventions, but their long-lasting effect will be challenging to replace.
Where is natural gas used?
Natural gas has numerous uses. It was the first natural energy solution made, forming the building block of various industries. Natural gas production affects four key areas, namely;
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Electric Power Sector – Natural gas generates electricity and produces sound thermal output. At least 70% of Africa’s Natural gas resources are used for electricity production, making it a preferred energy source. In the US, the electric power sector accounted for at least 37% of its total natural gas production.
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Industrial Sector – natural gas essentially produces methane and ethane. These two act as a file for process heating that most industries use. Industries that produce chemicals, fertilizers and hydrogen prosper since the world essentially turns to this energy source within their production process.
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Residential Sector – Aside from generating national revenue, natural gas can heat buildings and water. They are used to produce gas tanks for cooking and in some residents’ dry clothes. Almost all African residential areas must utilize their natural gas resources to have standard features within a building.
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Transportation sector – This is mainly self-explanatory. Standard petrol stations use various types of natural gases as fuel to operate compressors that move them through pipelines. In addition, vehicle fuel is a common form of compressed natural gas and liquified natural gas. Due to the slow penetration of electric vehicles, most forms of transportation in the continent still rely on natural gas production.
The potential of Africa’s natural gas resource
Africa is known for its plethora of natural resources, but none have proven more detrimental than its natural gas resources. Alone, Africa holds around 13% of the world’s natural gas and 7% of its oil resources. It’s one of the biggest gold mines of natural gas. Almost half of its 55 counties have some access to natural gas reservoirs. Experts have estimated that Africa’s natural gas resource falls around 800 trillion cubic feet.
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This figure alone suggests that if some countries could solely survive their natural gas export, they could develop a self-sustaining economy. With these numbers, if various African nations were to tap into their natural gas reserves, they would expand their production by 80% by 2035. further contributing to Africa’s overall economy. Unfortunately, these resources still need to be utilized more. Osama Mobarez, secretary general of the Wast Mediterranean forum, stated that Africa accounted for about 3% of global energy consumption and less than 3% of emissions.
These figures suggest that only a few cities let alone countries have access to this energy solution. He further stated that if Africa were to build oil and gas pipelines, liquified natural gas(LNG) terminals, distribution hubs and gas-fired plans, it would substantially open the gates to an entirely new energy market within its ecosystem. He further estimated that with an initial opening, it would acquire at least 600 million consumers in less than a decade.
Africa’s economy is now taking a more technical turn. The energy demands within will continue to double within the next decade. Its figures are estimated to see a 30% demand increase despite the consistent rise of renewable energy. Joseph McMongile, secretary general of International Energy, stated that despite the rapid growth of solar and wind energy in Africa, it would not assist its economy in the long run. The bitter truth is that Africa’s industries need to tap into their natural gas resources to increase their production rate.
Furthermore, if various African nations were to seriously tap into their natural gas production, a substantial increment within their economy would be evident. Fortunately, a select few African nations have realized the potential of this energy solution. Today each is significantly benefitting from its domestic and commercial uses.
Nations tapping into Africa’s natural gas resources
With the constant evolution of industries currently in Africa, various countries have to think outside the box into alternative activities to boost their income. In Africa, more than 20 countries have access to natural gas reserves. Unfortunately, only a few countries have truly gone ahead and exploited tie energy solutions. Here are the top three African economies benefitting from natural gas production.
Nigeria
According to the Department of Petroleum Resources, Nigeria has 206.53 trillion cubic feet of natural gas. Nigeria holds the top rank in Africa’s economy. In addition, one of the contributing factors is its domestic and commercial use of natural gas. Nigeria’s long-lasting gas history dates back to 1963-1968 when Shell first used non-commercially in Nigeria and 1989 for its Liquified Natural Gas.
Nigeria’s LNG(NLNG) is one of the main contributors to its economic state today. In 2021, Nigeria produced over 7 million standard Cubic Feet of natural gas daily. Once its Government realized the vast potential natural gas production offered, the country started generating a minimum of 22 million tokens of LNG per year as of 2020.
Currently, NLNG is the leading natural gas producer within the country and has access to significant resources;
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Six (6) liquefaction trains
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four (4) LNG storage tanks
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three (3) condensate storage tanks
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four (4) Liquefied Petroleum Gas (LPG) refrigerated storage tanks, each with a capacity of 65,000 cubic metres (two each for propane and butane)
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Ten (10) gas turbine generators with a combined output of 320 MW.
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23 LNG vessels visit the two export jetties at the facility, which handles over 400 loadings annually. It dedicates 23 LNG ships to the service of NLNG.
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Seven (7) liquefaction trains; the ongoing train seven (7) LNG project will enhance the total production capacity to over 30 million metric tonnes (MMTPA) of Liquefied Natural Gas.
Despite this plethora of resources, its primary transportation is through pipelines transiting through major critical points in Nigeria.
The ongoing war is among the few factors significantly aiding Nigeria’s current natural gas production. With Europe facing an energy crisis Nigeria and various other African countries had to double their efforts in supplying this energy solution to Europe nations.
Unfortunately, Nigeria only consumes up to 15% domestically of its natural gas production. With the recent increase in global gas prices, the demand for natural gas has virtually constrained Nigeria. Despite this, its natural gas reserves are still in place, but it needs more means to tap into them fully. The Nigerian Government has embarked on a Decade of the Gas initiative. This was mainly to encourage investments in gas infrastructure and increase gas penetration across its and Africa’s economy. Thus acquiring the necessary funding to allow this West African nation to tap into its resources fully.
Algeria
Algeria ranks 2nd in Africa’s natural gas resources having approximately 2% of the world’s total reserves at 159.1 trillion cubic feet. It is Africa’s largest country and the world’s sixth-largest gas exporter. Natural gas production is the main activity holding their economy together. Keep in mind that Alegria may have more reserves.
Its national oil company Sonatrach stated that at least two-thirds of the country remains underdeveloped and unexplored. They have stated its explorers will find at least 100 more natural gas resources in Algeria. In August 2022, Sonatrach announced three substantial oil and gas discoveries in three separate basins in the Algerian Sahara. These included a gas discovery near the giant Hassi R’Mel field, representing Algeria’s most significant discovery in the past two decades.
Sonatrach has essentially monopolized the natural gas production within the country and has acquired various dealings within the nation. In July 222, the Italian Oil Company Eni, American Occidental and French Total signed a $4 billion oil and production-sharing contract with it. This partnership would allow Sonatrach to supply countries such as Italy with immense volumes of this energy solution. Algeria exports about 83% of its gas to Europe, mostly Span and Italy. Unfortunately, like Nigeria, its limited infrastructure prevents the country from genuinely tapping into Africa’s natural gas resources.
Algeria has partnered with Nigeria to create the Trans- Saharan gas pipeline. This would significantly increase the flow of natural gas to Europe. When this project is complete, about 70% of his pipeline will pass through Nigeria, allowing the country and Sonatrach to utilize its resources fully and further increase its economic growth.
Sonatrach is moving forward with a $40 billion five-year investment plan to focus primarily on optimizing production. According to reports, this feat was possible through enhanced recovery technology that would broaden its gas infrastructure. Today Algeria has sought foreign partners to help build this technology.
As a country, Algeria has taken its stance in ensuring it dominates the African natural resources sector.
Senegal
In 2014 Senegal first discovered its potential as an exporter of Africa’s natural gas resource. Although it only recently announced its plans for mass natural gas production. Senegal holds aj approximately 120 trillion cubic feet of natural gas resources.
Due to its late discovery, Senegal has recently fully utilized its vast natural gas supply. Senegal is home to the largest gas project in Africa, the Greater Tortue Ahmeyim (GTA) LNG gas project. This gas project is between the border of Senegal and Mauritania. The GTA field projects hold 566 billion cub meters of natural gas reserves. Of these, Senegal received 283 billion cubic meters as per the Inter-State Cooperation Agreement signed in February 2018 between both countries.
According to Sophie Gladima, Minister of Petroleum and Energies of Senegal, the operations of natural gas products are set to commence. With the start of its natural gas production, Senegal will finally be able to utilize the gas pipeline being constructed between Nigeria and Morocco since it will pass through its country.
In light of its new potential in Africa’s economy, Senegal has stated that it will primarily utilize the vast natural gas resources to fast-track socioeconomic development. This will be conducted by exporting gas to electricity-deficient countries in the region and creating a domestic electricity market.
Senegal aims to produce universal energy access across the country by 2025. Sophi Gladima further stated that this new energy solution would be a vital role n turning Sengals’ economic position globally. Furthermore, it would establish its place in the Pilot Committee to Support Negotiations of Gas Projects and Institutional Capacity Building(PAN-PGRCI). This committee aims to support all parties involved in the GTA project in various areas, such as legal aspects and the commercialization and monetization of natural gas.
Senegal has high expectations from Africa’s natural gas resources and has continued to place various infrastructures to smooth the transition.
Africa still has other nations that have significantly dived into monetizing natural gas. These three countries, however, have the most potential and can significantly benefit from this energy solution.
Unfortunately, one of the significant critical demerits that hinder Africa from accessing its vast natural gas production is the need for more infrastructure. We have the resources but need more means to access them. As a result, most African countries merely lie on a goldmine that could propel Africa’s economy. Despite this, some have initiated forming partnerships allowing access to more sophisticated tools that would increase production. Africa’s natural gas resources still need to be more utilized, but they could propel Africa to new heights if given the right opportunity.
