Page 5 - AfrOil Week 12 2023

AfrOil COMMENTARY AfrOil

Taken together, he said, they represent a “perfect link Mozambique’s vast gas reserves to South
storm” of problems. Africa via a 2,600-km onshore pipeline. This
Just as all eyes were on North America after project is expected to expand electricity access
the 1965 blackout, the world is watching for throughout the region.
South Africa’s long-overdue response to its coal- Not only will the ARP carry gas to major cit-
driven energy crisis. It’s no surprise that climate ies along the pipeline route, but regional exten-
activists have seized the opportunity to say this sions will also provide fuel for electricity to
is why Africa needs renewables. (As we all know, Eswatini, Zimbabwe, Zambia, the Democratic
they’ve been beating the anti-fossil fuel drum for Republic of the Congo (DRC), Botswana and
some time, running fervent campaigns against Malawi. In addition to providing an accessible
oil and gas that include what amounts to out- energy source for electricity generation, the
right bans on project financing). ARP will reduce those nations’ fuel import bills.
And considering that the carbon dioxide Construction of the pipeline is scheduled to
emissions produced by Eskom’s coal-fired plants begin in 2023, but domestic users are already
help place South Africa among the world’s top- queuing up. There’s interest in almost 60% of the
20 emitting countries, their point is well-taken, pipeline’s annual capacity, which is estimated to
at least in that regard. Even President Rama- be 18 bcm.
phosa has jumped on the renewables band- The ARP isn’t the only project tying South
wagon, describing how solar panels on the roofs Africa and Mozambique. South African energy
of houses and businesses can become a source of company Gigajoule and joint development
new generating capacity, with customers able to partner TotalEnergies expect their $550 million
sell surplus electricity into the grid. Matola LNG import facility in Mozambique to
While the AEC has long supported the role become a major source of gas for South Africa.
of renewables in expanding reliable electric- The project will use the existing ROMPCO pipe-
ity to Africans, ramping up enough solar and line between Mozambique and South Africa to
wind power to make a meaningful difference meet growing gas demand throughout Africa’s
isn’t something that can happen overnight. As southern region. And if South African Minister
the AEC report notes, however, South Africa is of Mineral Resources and Energy Gwede Man-
fortunate to have other options that won’t take tashe has his way, Matola will provide feedstock South Africa
years or even decades to deploy. for three power plants in Mpumalanga province
South Africa’s energy challenges will be front that are currently running on coal. ought to
and center at African Energy Week scheduled
to take place on October 16-20 in Cape Town. The promise of Namibia speed up gas
Mozambique’s new developments aren’t the only development
Count on the neighbours ones South Africa may eventually be able to turn
For one thing, the nation should accelerate its to for a neighbourly injection of fuel that can be to alleviate
own gas agenda to alleviate persistent electricity used to generate electricity.
issues. Namibia is also on the cusp of becoming a persistent
That includes fast-tracking production regional hydrocarbon hub, although more work
license permitting for TotalEnergies (France), needs to be done to determine how much gas electricity
which wants to develop the Brulpadda and Lui- its oil-rich Orange Basin holds. The AEC report issues
perd prospects in the Outeniqua Basin, 175 km describes early successes by Shell (UK) and
off the southern coast of South Africa. These dis- TotalEnergies at their offshore Graff, La Rona,
coveries contain combined reserves of 4.5 tril- Jonker and Venus wells. The Venus-1x wildcat
lion cubic feet (127.4bn cubic metres) of natural alone is targeting a prospect with multiple bil-
gas and 192mn barrels of gas condensate. lions of barrels of oil. Just how much associated
According to published news reports, while gas is present in the basin remains to be deter-
some gas from the project will be used in pet- mined, but the area around Venus-1x could hold
rochemical manufacturing, a pipeline will as much as 10-20 trillion cubic feet (283.2-566.4
carry significant volumes to Eskom’s Gourikwa bcm).
thermal power plant (TPP). This will make the Getting Namibian gas to South Africa won’t
project integral to South Africa’s gas-to-power happen overnight, of course. It will take time
(GTP) aspirations, as well as weaning the coun- and money to develop the discoveries and build
try off coal-dominated energy generation. export infrastructure. But as the AEC report
But increased gas production may not be says, Namibia’s role as a gas exporter to South
enough, at least in the short term, to resolve Africa cannot be ruled out. And that means that
South Africa’s pressing energy crisis. I believe there’s hope that in the future, the question of
South Africa should also continue to build where you were when the lights went out will be
upon intra-African collaboration, using African relegated to South African history.
resources to generate and deliver energy domes- In the meantime, South Africa’s energy chal-
tically rather than exporting it abroad. One place lenges will be front and center at African Energy
South Africa is already making inroads is with Week scheduled to take place on October 16-20
neighboring Mozambique, which has emerged in Cape Town.
as a major global gas competitor after block-
buster offshore natural gas discoveries. NJ Ayuk is the executive chairman of the
The report looks at the proposed African African Energy Chamber (AEC). Article
Renaissance Pipeline (ARP) project, which will reprinted courtesy of AEC. ™

Week 13 30•March•2023 www. NEWSBASE .com P5