AEC seeks sustained gas investment in Africa amid energy transition

Executive Chairman of the African Energy Chamber, NJ Ayuk, has called for sustained gas investment in Africa amidst the energy transition programme.

Calling for a pragmatic and sustainable approach to energy transition in Africa, Ayuk said gas investment is progressing in Africa despite the calls by environmentalists and advanced countries to halt investments in African oil and gas projects.

Ayuk, who highlighted the prevailing situation in the continent, said there is a need to balance immediate energy needs with long-term environmental goals.

“Decarbonisation is not an overnight goal, especially for nations that have long lacked the development opportunities enjoyed by Western countries. We must build the infrastructure required to support the development of renewables, and that task is more challenging for Africa, which is playing catch-up at an accelerated pace,” Ayuk stated.

Expressing concerns about unrealistic expectations imposed on Africa, Ayuk questioned the feasibility of immediately transitioning to renewable energy sources when millions on the continent lack access to electricity. He raised critical questions about the capital and infrastructure needed for such a rapid transformation.

“Africans must take the lead in providing capital and building the necessary infrastructure. Natural gas, with its cleaner-burning properties, abundance, and versatility, emerges as a vital resource for energy security and achieving decarbonization goals,” Ayuk asserted.

Ayuk applauded energy companies operating in Africa for recognizing the value of natural gas as a transition fuel. He cited examples such as TotalEnergies and Wintershall Dea, which continue to invest in natural gas projects despite environmental concerns.

He underscored the industry’s potential to be part of the climate solution, especially when transitioning from coal to gas, which can immediately reduce CO2 emissions.

He called for a collaborative effort, urging developed nations to recognize and support Africa’s unique path to transition at its own pace.

Ayuk said: “North Africa currently drives the majority of the continent’s output, although its production is expected to remain flat throughout the rest of the 2020s. Production ramp-up is expected through the second half of this decade as Mozambique increases its LNG output. As new-gas start-ups across the rest of the continent come online, this trend in increased output will become further pronounced.

“Nigeria and Algeria, meanwhile, are expected to drive an increased focus on LNG exports, with additional flows coming from Egypt, Equatorial Guinea, Mozambique, and waters off Senegal- Mauritania

“Africa’s natural gas sector stands poised to prepare the entire continent for eventual decarbonisation, as do many of the companies operating here.”

According to him, the goal of a continent fueled by renewable power cannot be achieved, however, unless the developed world also recognizes this and allows African states to transition on their schedule, not one imposed on it by others.