An enriching discussion on the second day of the MSGBC Oil, Gas & Power 2023 Conference and Exhibition, sponsored by the National Industrial and Mining Corporation, brought together regional and international energy leaders to explore the role of natural gas in the global energy landscape . Speakers examined the changing market dynamics due to the global energy transition, sustainability initiatives and technological innovations in the sector.
Presenting an attractive option for stabilizing the trajectory towards renewable energy development while reducing carbon emissions in the near term, the role of natural gas in Africa has the potential to boost electrification, socio-economic development and monetization of resources on the continent. As such, speakers noted that the share of natural gas in the global energy mix should reach 26% by 2050.
“The role of gas is huge and has a very promising future,” said Rafik Amara, senior gas analyst for the Gas Exporting Countries Forum, adding: “We see that natural gas will surpass coal in the energy mix in the future. over the next three to four years and will be the most widely used fuel from 2040. Natural gas is the only approach to achieving energy market stability.”
Estimated to hold over 100 trillion cubic feet (tcf) of natural gas, the MSGBC region is well-positioned to leverage its immense natural resource endowment to attract foreign investors while fostering regional collaboration and integration. In addition, speakers highlighted the importance of regional gas development for electricity and LNG export as a model to ensure and develop coherent economic development.
“We have energy, but the question is how to develop it. To develop these 100 tcf, we will need innovative development schemes and we must have aligned objectives with our partners, including the national oil companies,” said Ismail Mohamed Sid Ahmed, vice president and country director of Mauritania for upstream oil company, Kosmos Energy, adding: “This duality between gas for power generation and LNG export is a model that we let’s see who will develop a cash flow and part of it will have to be reinvested in future projects.”
It is estimated that natural gas will be responsible for around 30% of Africa’s total energy demand increase by 2050. As such, speakers highlighted significant discoveries in the MSGBC region, including the BirAllah conventional gas development of 13 tcf, the Grand Tortue Ahemyim gas field of 15 tcf and the Yakaar Teranga conventional gas development of 20 tcf, as imperative to stimulate electrification, industrial development and energy transition in West Africa .
“We view innovation as a catalyst,” said Pierre-Edouard Crouzier, project manager at Technip Energies, adding: “This is what allows us to deliver projects with requirements that were formulated during our discussions here today.”
It was noted that significant upstream investment and long-term contracts will be required to realize the potential of natural gas in the region. Speaking on behalf of the Ministry of Oil, Mines and Energy of the Islamic Republic of Mauritania, Khroumbaly Lehbib, hydrocarbons advisor for the ministry, highlighted the government’s role in developing an investment environment favorable for international oil companies to participate in the energy space of the MSGBC region.
“The role of the government is to create a stable legal and regulatory regime to partner with national and international companies capable of meeting their commitments,” Lehbib said, adding: “We have high-quality partners in the “energy and oil and gas, and we hope that over the next ten years, the MSGBC region can become one of the largest global players in the oil and natural gas markets.”
With the objectives of ensuring universal access to electricity and the need to develop less carbon-intensive energy resources, the panel highlighted the improvement and expansion of infrastructure as a prerequisite for stimulating domestic gas demand. in west Africa. Additionally, it was noted that reliable gas has the potential to provide rapid access to energy for the 600 million Africans currently living without adequate access to electricity.
“The more we advance in gas turbine efficiency, the more we turn to gas-focused solutions,” said Ousmane Ndoye, general manager for Senegal at GE Vernova, adding: “Gas is a key element of differentiation for the region today. It allows rapid growth, thanks to rapid access to electricity, and it is also a reliable and sustainable transition energy.”
