Page 9 - AfrOil Week 43 2021

AfrOil POLICY AfrOil

Algeria remains Spain’s largest single source of authorities took this step with the aim of reward-
gas, accounting roughly 30% of all supplies in ing Morocco for its recognition of the state of
the Iberian country. As such, Algiers’ decision Israel. These developments have met with a
not to continue gas deliveries to the Moroccan chilly reception in Algeria, which has hosted
market has sparked concern in Madrid and Western Sahara’s Polisario independence move-
heightened worries about pan-European gas ment in the past, and Algiers has been accusing
shortages. Algerian officials have said, though, Rabat of hostile actions ever since. ™
that gas will continue flowing to Spain, either
through the Medgaz pipeline or via direct tanker
shipments of LNG.
The upcoming lapse of the 25-year transit
agreement has also sparked worries in Morocco,
which has been receiving a portion of the Alge-
rian gas pumped through its section of GME.
Officials in Rabat have said they are exploring
various options to meet the country’s energy
needs in the absence of Algerian deliveries,
including the construction of new gas storage
facilities and the reversal of the Moroccan por-
tion of the GME pipeline to facilitate imports of
gas from other regions.
Questions about the fate of Algerian gas
shipments to Spain have been mounting since
late September, when Algiers broke off rela-
tions with Rabat following a diplomatic dis-
pute over the US government’s recognition of
Moroccan sovereignty over Western Sahara. US Both GME and Medgaz pump Algerian gas to Spain (Image: Wikimedia)

Head of GGC touts role of gas

in African energy transition

GHANA DR. Ben K.D. Asante, the CEO of Ghana Gas enough gas to support 1,000 MW of electricity
Co. (GGC), has said he believes natural gas will generation capacity, he said, it would end up
play a prominent role during Africa’s transition spending $33.6mn per month and emitting
to lower-carbon energy sources. 1.3mn tonnes per year (tpy) of carbon diox-
Speaking at the 10th Ghana Economic ide. Buying petroleum products for the same
Forum (GEF 2021) last week, Asante stated that purpose, by contrast, would cost $70.1mn per
he did not expect the world to be able to shift month and generate 7.5mn tpy of carbon diox-
to renewable energy sources quickly. The pro- ide, he explained.
cess of bringing net carbon emissions down to Also speaking at GEF 2021 was Gregory
zero and phasing out fossil fuels is likely to take Germani, the managing director of West Afri-
more than two or three decades, especially in can Gas Pipeline Co. (WAPCo). He described
less developed countries, he said, according to the transition to lower-carbon energy as a posi-
a report from GhanaWeb. tive development and said he expected African
“I don’t think the transition period is going countries to show more interest in gas and pur-
to end in 2040 or 2050. I think it’s going to be sue more cross-border supply deals.
longer,” he commented. “I think fossil fuels [will] “We keep seeing across the globe ... the value
stick with us longer than some of the other coun- of gas as a cleaner alternative as we transition,”
tries are projecting.” he said, according to GhanaWeb. “We are seeing
Under these circumstances, he continued, a lot of drive to use that [gas] to create a win-win
gas is on track to become the preferred fuel situation for all stakeholders. We are hopeful of
because it burns more cleanly than petroleum seeing more collaborations going forward.” ™
products, because it is more widely available and
because the necessary infrastructure is already
in place. “[As] we transition, gas will trump oil.
Gas is the best bet,” he declared.
Asante went on to note that gas was cheaper,
as well as less polluting. If Ghana were to buy

Week 43 27•October•2021 www. NEWSBASE .com P9