It is vital that Africa has a clear and cohesive vision in place for how it plans to use its gas reserves, says New Partnership for Africa’s Development Business Foundation senior project manager John Rocha.

Speaking at the Africa Gas Forum in February, he pointed out that African countries had proven natural gas reserves of about 503-trillion cubic feet, while African gas consumption was set to rise by 3.1% a year, or a combined 150-billion cubic metres, up to 2022.

Rocha noted that there was a ramp-up in exploration, drilling and production, and offshore activity on the continent.

An estimated $194-billion would be spent on 93 planned oil and gas projects between 2018 and 2025.

“Combined, these projects represent production rates of more than 13.4-billion barrels of oil and 184-trillion cubic feet of gas. Most of the production is geared for export, but we need to consider domestic and regional gas use.

“Some countries are [developing] gas masterplans, but the public and private sectors need to talk about how gas can be used to activate African economies and provide cleaner energy for the 621-million [people] that are still without electricity access in Africa.”

He stated that Africa was unskilled in the extraction and use of gas and, therefore, urged countries to reach out to foreign stakeholders and gain knowledge about their strategies and technologies.

“We want sustainable investment flowing into the continent – not just projects for the next five to ten years. A clear, shared view will ensure gas project success for at least the next 30 years. Projects mean nothing unless they are able to translate into business opportunities and job creation,” Rocha highlighted.

He further pointed out that global natural gas demand was set to increase by 46% from 3.71-trillion cubic metres at present to 5.43-trillion cubic metres by 2040.

Rocha said African countries that were new in the gas sector had to consider their global positioning in terms of gas, since the US shale gas revolution had transformed the market.

Opportunities included Europe’s decarbonisation priority; however, the continent’s biggest supplier of natural gas was currently Russia.

Further, a move towards cleaner energy sources in China was also driving demand, which countries such as Mozambique could take advantage of, Rocha suggested.

He said rising demand for gas would drive up prices and African countries needed to consider the financial capital and human capital required to optimally use the resources, while also adapting to the implementation of the Fourth Industrial Revolution.

Additionally, countries with a domestic gas use agenda would need to assess where gas fitted in, since wind and renewable energies like solar were cleaner, albeit less flexible and with their own challenges. “A domestic use target cannot be set if needs are not assessed and feasibility determined.”

Rocha expected that, as economies expanded over the coming decades, and the use of gas in industrial applications for combined heat and power, process heat and as feedstock in chemical manufacturing took off, the energy market in Africa would grow to $3-trillion in value.

This was also on the back of the continent’s population growing to 1.3-billion people by 2050.

“Across Africa, gas is used for cooking purposes, but we need to understand the structure of that market, the price people can afford to pay and the efforts that will be required to convince people to change their energy use.

“Southern African Development Community countries are aiming for 26% gas use, but how will it be distributed? Some markets are small, looking at borders, but the aggregate demand might be big enough. We need to research and develop our markets.”

Meanwhile, General Electric gas power systems Anglophone Africa sales MD Nosizwe Dlengezele-Motsitsi said many countries in sub-Saharan Africa were landlocked and that careful consideration of gas exports and costs was necessary.

She added that energy was the biggest factor influencing industrialisation. “It will take a concerted effort to engage African governments around the ability to provide cost-effective and affordable energy that will spur industrial growth. In South Africa alone, we have been waiting for a master gas plan for four years.”

Dlengezele-Motsitsi noted that the development of South Africa’s natural gas industry could boost gross domestic product by R250-billion by 2030, creating up to 328 000 direct and indirect jobs.

“Viable production of indigenous gas supports a carbon-resilient future, a cost-effective power sector and greater energy independence.”