Page 5 - AfrOil Week 07 2023

AfrOil COMMENTARY AfrOil

Meanwhile, capital spending in global upstream coal-fired generation and the rejuvenation of
oil and gas projects is set to record a 10% increase existing coal facilities, while accelerating renew-
in 2023 compared to 2022 levels, according able energy deployment, is essential to end the
to Wood Mackenzie. The sizable potential electricity crisis.
of new and large-scale gas discoveries across
South Africa’s section of the hydrocarbon-rich Fossil fuels and the larger picture
Orange Basin presents an ideal opportunity Moreover, coal is part of the larger picture.
for the country to capitalise on this investment “South Africa should be careful about
momentum and attract interest from interna- demonising its domestic oil and gas resources.
tional explorers. The war against fossil fuels needs to come to an
While the so-called environmental lobbyists end if we are to address South Africa’s electric-
try to block efforts by Shell to unlock South Afri- ity crisis. More oil and gas exploration, devel- Now more
ca’s upstream potential, the AEC believes more opment and exploitation remains key if South
oil and gas exploration is key to ending the elec- Africa is to achieve energy security and eco- than ever is
tricity crisis and as such, it is strongly advocating nomic growth. Government should fast-track
for South Africa to create an enabling environ- permit approvals for more drilling, seismic sur- the time for
ment for more oil and gas exploration to take veys [and] pipeline developments, as well as for
place. new LNG terminals to be constructed,” stated South Africa
NJ Ayuk, the executive chairman of the AEC. to encourage
Free markets and the private sector In this regard, with African energy stake-
Furthermore, while South Africa has been pro- holders meeting with European investors at the private-sector
ficient at leveraging private-public sector part- upcoming Invest in African Energy Frankfurt
nerships to date, now more than ever is the time Reception, organised by the AEC and taking investment in
for the government to drive more private-sector place at Frankfurter Botschaft in Germany on
participation in the financing, development and February 23, South Africa’s energy policymak- natural gas
rollout of domestic gas infrastructure. It must do ers, investors and project developers will have a infrastructure
so, both to facilitate LNG imports from other strategic opportunity to showcase the country’s
producers in the region such as Mozambique, gas market potential. projects
Equatorial Guinea and the Republic of the Moreover, South Africa will host the African
Congo (ROC) and also to harness the country’s Energy Week 2023 Conference & Exhibition
own reserves. (AEW 2023), Africa’s premier event for the
Additionally, the Chamber believes free mar- energy sector, taking place on October 16-20 in
kets and private sector investments are vital to Cape Town.
address the South African energy crisis. This conference will unite regional and global
And while the impacts of the electricity crisis energy leaders, decision-makers and financiers,
are significant, with the South African economy giving them an opportunity to explore invest-
losing up to ZAR900mn ($49.92mn) per day ment opportunities across the country’s entire
due to load-shedding, coal has a crucial role to natural gas value chain.
play in stabilising the country’s energy sector
and business environment. We believe more Article reprinted courtesy of AEC. ™

Offshore fields such as Luiperd and Brulpadda could serve as future sources of gas (Image: Africa Oil Corp.)

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