The role of natural gas and LNG in Africa's transition to clean energy

 

 A pumpjack extracts crude at an oil field in Emlichheim, Germany, March 18, 2022. [AP Photo]

A month ago, key stakeholders from across Africa and beyond convened for the Invest in African Energy Forum, where they addressed the pressing energy challenges facing the continent.

Hosted in Paris, France, discussions centred on strategies to attract investment, promote sustainable energy development, and drive economic growth while prioritising environmental responsibility.

I believe such efforts to advance and modernise the African energy landscape and the natural gas and Liquefied Natural Gas (LNG) have a central role to play in delivering a stable, affordable, and sustainable energy future for the continent.

Africa’s energy needs are vast and growing. With a population exceeding 1.3 billion, many of whom lack access to reliable energy, the challenge is not merely to meet current demand but to plan for future growth. In Nigeria alone, approximately 85 million people — about 43 per cent of the population — do not have electricity.

A similar story presents itself across the continent, and such energy poverty is a significant barrier to economic development, health and overall quality of life. Facing this monumental task of expanding energy access and unlocking growth on national and regional level, policymakers and industry leaders must take decisive action.

Adding to the complexity of Africa’s energy future is the ongoing pivot to large-scale emissions reduction and improved sustainability, which has quickly emerged as a global priority on the road to net zero. Recent reports indicate that limiting global warming to 1.5°C - the all-important target set by 195 countries at the Paris Climate Conference in 2016 – will require reducing CO2 emissions by nearly half by 2030 and achieving net zero emissions in the energy sector by 2050.

While undoubtedly necessary, such an ambitious goal will necessitate a costly transformation of existing systems and infrastructure, a difficult proposition for a continent already struggling with energy poverty.

Natural gas, abundantly available in Africa, offers a solution to this two-pronged problem. Natural gas is the cleanest burning fossil fuel, emitting about half the carbon dioxide (CO2) of coal when combusted for power generation. As such, it serves as a critical bridge in the transition from high-carbon energy sources to renewables.

In Africa, where the energy infrastructure is still developing, natural gas can provide reliable baseload power necessary to support intermittent renewable sources like solar and wind. Moreover, utilising natural gas for electricity generation and industrial applications can also reduce emissions derived from widespread use of diesel generators which contributes significantly to air pollution and greenhouse gas emissions.

Investment in natural gas also aligns with Africa’s bid to expand energy access and make progress on economic development goals.

The Nigeria LNG project, which started operations in 1999, has grown significantly and reflects the rapid expansion of this valuable resource both within Nigeria and abroad. Our organisation was created to harness Nigeria’s vast natural gas resources - the country is home to the largest reserves in Africa, over 200 trillion cubic feet - and produce LNG and NGLs for ex​​port.

Today, we operate a six-train plant capable of producing 22 million tonnes per annum of LNG and are working to expand production by 35 per cent in the near future. In our time producing this critical resource, we have seen Nigeria’s natural gas and LNG sector flourish, spurring economic development and foreign investment that is vital to the country’s long-term growth.

Finally, Nigeria LNG is proud to sponsor Gastech 2024, in Houston on September 17-20. The landmark event will offer a vital platform for those leading the African energy system to connect with potential partners and investors, thus providing a path towards natural gas expansion and decarbonisation.

By harnessing the power of natural gas, Africa can achieve energy security, drive industrial growth, and transition to a low-carbon economy.