THE pipeline of gas projects in Africa is stronger than ever, but to remain competitive in the rapidly evolving global gas market, the continent must ensure it offers value. This involves presenting a proposition that addresses both financial viability and environmental sustainability, making Africa’s gas investment appealing and future-proof to attract global capital.
This was the key consensus during a panel discussion on Day 1 of the ongoing AOW: Investing in African Energy – Africa’s premier oil, gas, and energy event in Cape Town, South Africa. The discussion highlighted that ambitions around gas development have expanded significantly in recent years, driven by both public and private sector initiatives, renewed exploration activities, and pragmatic energy transition strategies.
Gas is increasingly seen as the ideal bridging fuel, balancing Africa’s rising energy demands with its commitment to decarbonisation. Mario Bello, Head of Sub-Saharan Africa at Eni, stressed the importance of natural gas in Africa’s energy landscape, noting, ‘Natural gas is central to what we are doing in Africa. It’s the cleanest fossil fuel, producing fewer emissions than coal, and it plays a vital role in our transition to renewables.’
Bello highlighted Eni’s Floating Liquified Natural Gas (FLNG) projects in Mozambique and the Republic of Congo as examples of how technology can unlock stranded offshore gas resources and fast-track project development. He noted that FLNG is key to unlocking the region’s gas potential, enhancing both domestic energy security and export revenue.
However, financing these projects remains a challenge. Paul Eardley-Taylor, Head of Oil & Gas for Southern Africa at Standard Bank, underlined the importance of developing bankable projects that address investor concerns, particularly around sovereign risk. He emphasised the transformative impact of large-scale LNG projects, alongside smaller domestic gas ventures, in creating jobs, driving economic growth, and improving energy access.
Equinor’s Senior Vice President for Africa, Nina Birgitte Koch, stressed the need for competitive projects that meet environmental standards, especially in reducing carbon emissions. ‘CO2 is now a key criterion. Securing capital for large LNG projects requires strong environmental credentials,’ she said, highlighting the growing importance of sustainability in attracting international investment.
The role of technology and regional cooperation was also discussed as essential for maximising Africa’s gas resources. Gianluca Ciricugno, Africa Director at Baker Hughes, urged a long-term vision that includes collaboration between governments, investors, and technology providers. He called for stable regulatory frameworks and sustained infrastructure development to support the sector’s growth.
Dr Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), echoed the need for government intervention to address market failures and stimulate investment. He outlined CEF’s role in advancing critical gas infrastructure projects like the Romp pipeline and LNG import terminals, stressing the importance of government-backed agreements and risk-sharing mechanisms to attract private capital.
ExxonMobil’s Executive Director of Global LNG Marketing, Deri Irawan, highlighted the need for a holistic approach to project development, considering the social, political, and economic aspects. He stressed the importance of strong partnerships and stakeholder engagement to ensure long-term success. ‘It’s not enough to just deliver the commodity; you need to unlock the entire value chain,’ Irawan explained.
With Africa on the brink of a gas revolution, the message from the panel was clear: the continent possesses the resources, ambition, and potential to become a key player in the global gas market. However, achieving success will depend on creating a stable and attractive investment climate, embracing innovation, and fostering regional collaboration to ensure that Africa’s gas resources benefit both its people and the planet.
Credit: Africabrieifing
