Page 6 - GLNG Week 45 2022

GLNG COMMENTARY GLNG

Russia-Ukraine conflict brings

African gas into focus at COP27

COMMENTARY The geopolitical scene has changed dramatically buyers have turned to other suppliers – includ-
over the last year, largely due to the disruptions ing African suppliers. Italy’s Eni, for exam-
and realignments that have resulted from Rus- ple, has sought to ramp up the volume of gas
sia’s invasion of Ukraine. it imports from its existing sources in Algeria,
One of the attendees at the COP27 interna- Egypt and Angola. It has also fast-tracked plans
tional climate conference in Sharm El Sheikh, to launch an LNG export programme offshore
Egypt, marked the shift earlier this week by the Republic of Congo and is working to keep
noting that even the premises of the ongoing its Coral South LNG project on schedule off-
discussions about the coming energy transition shore Mozambique. Germany’s government,
had changed. The talks are now taking demand meanwhile, has pursued closer bilateral ties with
for natural gas and other fossil fuels into account future gas-producing states such as Senegal and
rather than focusing narrowly on renewable South Africa in the hope of securing fuel supplies
energy, he was quoted as saying by Devex. and diversifying its own energy mix.
“Last year [at COP26], no one dared to [talk]
about fossil fuel or natural gas. The position Benefits for Africa
has changed. Because there is a war in Europe, Europe’s urgent need to diversify its gas supply
the [mood] has changed,” said Papa Samba Ba, ahead of the rapidly approaching winter has
a technical advisor with Senegal’s Ministry of had some benefits for Africa. It has attracted
Petroleum and Energies. He went on to say that more investment to the African gas sector and
global energy policies should take the African led international oil companies (IOCs) to push
continent’s needs into consideration rather than forward with a number of upstream and LNG
focusing solely on the requirements of Western projects that might otherwise have languished.
countries. So far, however, the benefits have accrued
It is perhaps no accident that the person who mostly in relation to Africa’s position as a sup-
made this point is an African – and, for that mat- plier of raw materials and commodities to other
ter, the citizen of an African country that is slated regions of the world and not so much in rela-
to become a supplier of LNG to Europe once it tion to Africa’s ability to meet its own demand
commences gas production. The country’s for fuel. This has irked local stakeholders such
first commercial gas project, Greater Tortue/ as the African Energy Chamber (AEC), a trade
Ahmeyim (GTA), is slated to come on stream association that has repeatedly urged the conti-
next year and will deliver most of its production nent to use its own hydrocarbon resources as a
to European buyers in the form of LNG. means of alleviating energy poverty. It has also
spurred debates between COP27 attendees and
European eyes on African gas other observers over whether African countries
Senegal is hardly the only African country that should maximise their use of gas, which has the
has been courted by European countries eager lowest emissions intensity of any fossil fuel, as a
to find new suppliers to replace the Russian oil bridge fuel on the path toward transition, or shun
and gas they have stopped receiving since the gas in favour of solar, wind or other renewables.
outbreak of war in late February. Former US Vice President Al Gore, for
Since that time, the EU has said it intends to instance, urged Africa to reject offers to invest
work toward a complete ban on Russian crude oil in its gas reserves, saying that this approach
and petroleum product imports, with some lim- would have ruinous long-term consequences.
ited exceptions. It has not imposed limits of this “We must see the so-called dash for gas for what
type on gas imports, but Russia can no longer be it really is: a dash down a bridge to nowhere,
relied upon to deliver gas in the expected quan- leaving the countries of the world facing climate
tities at the expected times. Instead, unexpected chaos and billions in stranded assets, especially
interruptions and pipeline stoppages have here in Africa,” he said during his opening
become commonplace. speech at COP27.
It is no wonder, then, that European gas By contrast, Namibia’s Petroleum

P6 www. NEWSBASE .com Week 45 10•November•2022