Page 5 - AfrOil Week 45 2022

AfrOil COMMENTARY AfrOil

Since that time, the EU has said it intends to renewables.
work toward a complete ban on Russian crude Former US Vice President Al Gore, for
oil and petroleum product imports, with instance, urged Africa to reject offers to invest
some limited exceptions. It has not imposed in its gas reserves, saying that this approach
limits of this type on gas imports, but Russia would have ruinous long-term consequences.
can no longer be relied upon to deliver gas in “We must see the so-called dash for gas for what
the expected quantities at the expected times. it really is: a dash down a bridge to nowhere,
Instead, unexpected interruptions and pipeline leaving the countries of the world facing climate
stoppages have become commonplace. chaos and billions in stranded assets, especially
It is no wonder, then, that European gas buy- here in Africa,” he said during his opening
ers have turned to other suppliers – including speech at COP27.
African suppliers. Italy’s Eni, for example, has By contrast, Namibia’s Petroleum Commis-
sought to ramp up the volume of gas it imports sioner Maggy Shino declared that African gov-
from its existing sources in Algeria, Egypt ernments’ need to improve citizens’ access to
and Angola. It has also fast-tracked plans to energy outweighed other considerations. “There
launch an LNG export programme offshore the [are] a lot of oil and gas companies present at It is no wonder
Republic of Congo and is working to keep its COP because Africa wants to send a message that European
Coral South LNG project on schedule offshore that we are going to develop all of our energy
Mozambique. resources for the benefit of our people because gas buyers have
Germany’s government, meanwhile, has pur- our issue is energy poverty,” she stated.
sued closer bilateral ties with future gas-produc- She also pointed out that Western critics of turned to other
ing states such as Senegal and South Africa in the African gas projects had not offered adequate
hope of securing fuel supplies and diversifying concrete support for alternative solutions. “If suppliers –
its own energy mix. you are going to tell us to leave our resources in including African
the ground, then you must be prepared to offer
Benefits for Africa sufficient compensation. But I don’t think any- suppliers
Europe’s urgent need to diversify its gas supply one has yet come out to make such an offer,” she
ahead of the rapidly approaching winter has remarked.
had some benefits for Africa. It has attracted
more investment to the African gas sector and No definitive conclusions
led international oil companies (IOCs) to push Given that this is a subject of an ongoing debate,
forward with a number of upstream and LNG it seems unlikely that any definitive conclusion
projects that might otherwise have languished. will be reached before COP27 draws to a close
So far, however, the benefits have accrued on November 18.
mostly in relation to Africa’s position as a sup- Instead, African governments and IOCs will
plier of raw materials and commodities to other continue to announce, as they have been doing
regions of the world and not so much in rela- since the start of November, the roll-out of new
tion to Africa’s ability to meet its own demand green hydrogen projects, while some African
for fuel. This has irked local stakeholders such officials and African observers will continue
as the African Energy Chamber (AEC), a trade to make a case for hydrocarbons, as they have
association that has repeatedly urged the conti- been doing all along. Meanwhile, European gas
nent to use its own hydrocarbon resources as a buyers and European oil companies will also
means of alleviating energy poverty. It has also continue discussing investments in African gas
spurred debates between COP27 attendees and projects – again, as they have been doing at least
other observers over whether African countries since the outbreak of war in Ukraine.
should maximise their use of gas, which has In short, COP27 will have an effect on
the lowest emissions intensity of any fossil fuel, headlines, but the extent to which it will have
as a bridge fuel on the path toward transition, a concrete impact, especially in the short term,
or shun gas in favour of solar, wind or other remains to be seen. ™

(Photo: Twitter/@Min_of_Mines)

Week 45 10•November•2022 www. NEWSBASE .com P5