Exploration efforts in both mature and emerging markets in sub-Saharan Africa continue to unveil sizeable oil and gas deposits while efforts to boost electrification are seeing new developments crop up across the renewable energy and green hydrogen fields.
As markets expand, sub-Saharan African countries stand to learn valuable lessons from their North African counterparts.
Leveraging Algerian Gas Expertise to Bolster LNG Markets
With over 159 trillion cubic feet of gas resources, Algeria focused significant levels of investment into the domestic gas market.
Efforts to grow the country’s infrastructure, power generation and production base have positioned the country as the fifth largest Liquefied Natural Gas (LNG) exporter globally.
The country’s LNG experience stands to significantly benefit emerging gas markets in sub-Saharan Africa. Countries to the likes of Mozambique, Senegal, Mauritania and Tanzania are progressing with large-scale LNG developments, and insights from Algeria will help strengthen domestic markets. Algeria’s Ministry of Energy and Mines has expressed its intention of amplifying Algeria’s influence in Africa. Underpinned by Algerian President Abdelmadjid Tebboune’s vision that states that Africa is a priority for the country, the Ministry is committed to collaborating with other countries, creating opportunities for private Algerian energy companies to participate in other markets.
From local content to capital to regulatory frameworks to technology, Algeria’s gas success serves as a model for upcoming African gas producers.
Libyan Bilateral Cooperation to Expand Onshore Exploration
On the oil front, Libya has seen great success in developing its onshore acreage. The country holds the largest proven oil reserves on the continent and the tenth largest globally at over 46 billion barrels. Approximately 93% of the country’s recoverable oil reserves are located in the onshore Sirte Basin and Murzuq Basin, and as such, the country offers unique insights for other countries.
Despite representing the only commercial oil producer in East Africa, South Sudan, for instance, is witnessing a gradual decline in production owing to ageing oilfields. The need to advance onshore exploration is becoming increasingly important, and cooperation with Libya could prove highly beneficial in this regard. The same can be said for Kenya, which is driving E&P efforts in the Lamu and South Lokichar basins, and Uganda, with onshore drilling in the Kingfisher Conventional Oil and Tilenga Developments.
Libya’s expertise lies in its commitment to collaborating with foreign energy firms; consistently incentivizing exploration; aligning policy with energy objectives; and investing in the domestic market. Bilateral cooperation will serve to grow other onshore markets in Africa.
Egypt’s Renewable Know-How to Bolster Developments
While Egypt represents a major LNG market in its own right, notwithstanding gas, the country serves as a renewable energy market model for other countries in Africa. Under efforts to generate 60% of its electricity using renewables by 2040, Egypt put in place attractive fiscal regimes, incentivized private participation, while spearheaded local content programs to grow the green energy market. This strategy, as well as collaboration and partnership opportunities, will be instrumental for other countries looking at maximizing renewable energy resources for economic development.
Egypt’s renewable energy know-how lies in its success in developing large-scale projects and integrating gas with renewables. Major developments in the country include the 1.8 GW Benban Solar Park; the 580 MW Gabal Al-Zait wind farm; the 545 MW Zafarana wind farm, and others. Leveraging gas revenue, the country has managed to bolster the renewable energy market, thereby using hydrocarbons as a catalyst for clean energy development.
Other countries such as Mauritania, Tanzania, Angola, Namibia and more can follow suit, and with Egypt committed to collaborating with regional partners, Africa is poised to see a surge in renewable developments.
ECP Events: Connecting Countries and Companies
As North African countries look at exerting their influence across the continent, Energy Capital & Power (ECP) connects countries, companies and partners. Through a series of investment-focused energy events, ECP provides a platform where African governments, global investors and regional project developers can meet, sign deals and collaborate. Upcoming events include the Angola Oil & Gas conference (September 13-14); the Libya Energy & Economic Summit (November 8-9); and the MSGBC Oil, Gas & Power conference (November 21-22). Visit www.energycapitalpower.com for more information.