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Noncore service providers poised to gain from African gas projects

Noncore service providers poised to gain from African gas projects

Photo by Bloomberg

26th August 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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Citing an abundance of planned or developing gas-related energy projects in sub-Saharan Africa, Africa Project Access MD Paul Runge said on Tuesday that there was “huge” opportunity for logistics and ancillary service companies to take advantage of the often-stranded nature of gas developments, which provided “ripples” of opportunity.

Speaking at the Gas Africa conference in Johannesburg, Runge, whose company advised on energy projects on the continent, said the provision of logistics to isolated gas developments was increasingly becoming a key issue in the industry.

A lack of accommodation, catering and other noncore services had become a priority issue for gas developers and presented knock-on opportunities for companies specialising in these fields.

“We’re looking at the benefits created by the ripple effect of the pebble – which is the gas find – rather than the opportunity of the pebble itself.

“We’ve never seen a project flow [in the region] such as we are seeing today. Yes, there are cynics, but things are happening. For example, if you think you still have an [early mover advantage] in the Pemba [gas region, in Mozambique], you’re wrong,” he commented.

Elaborating on the various gas projects currently under development across Southern and Eastern Africa, Runge referred to several regional gas “hotspots”, citing Pemba and Palma, in northern Mozambique; Pande and Temane, in central Mozambique; Mtwara, in southern Tanzania; the Lamu basin, in Kenya; Kudu, in Namibia; Cabinda, in Angola; Jubilee, in Ghana; and Banda, in Mauritania.

Significant gas-related infrastructure projects within these regions included the over-$1-billion Pemba port construction project, the Palma floating facility project, the Pemba and Palma industrial park developments, the Mtwara port expansion project, the San Pedro port project, in Côte d'Ivoire, and the Takoradi port development, in Ghana.

“Logistics and finance requirements permeate all of these projects,” said Runge, adding that liquefied natural gas (LNG) plants in sub-Saharan Africa also offered downstream opportunities.

Listing LNG plants in the region, he referenced the Bioko Island plant, in Equatorial Guinea; Bonny, in Nigeria; Brass, in Nigeria; Souo, in Angola; the Afungi Peninsula plant, in Mozambique; and the planed Mtwara plant as offering opportunities for ancillary service providers.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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