Page 34 - Energize April 2022

NEWS

Infrastructure rollout to help Africa

expand LNG exports, meet global

demand

lobal energy transition policies are pushing for an increase in the use of gas as a exporter. In June 2019, TotalEnergies
transactional energy resource, thereby increasing the demand for liquefied natural reached a Final Investment Decision (FID)
Ggas (LNG). This provides a huge opportunity for African hydrocarbon producing for its 12,8 million ton per annum (MMtpa)
countries to monetise LNG. project in Mozambique, which is Africa’s
Africa is already well positioned to become a global energy hub with a number of largest greenfield LNG production initiative.
projects operating and an increasing number in the pipeline. Sub-Saharan Africa, for Once operational in 2026, it will
instance, could boost its LNG exports to 60 million tonnes per year (mt/year) by 2025 and produce 2 billion standard cubic feet of
approve an additional 74 million mt/year by 2030, according to a report released by the natural gas which will be used to meet
African Energy Chamber. However, leading and emerging gas-producing countries in Africa demand locally, at continental level and in
such as Mozambique, Nigeria, Niger and Tanzania require massive investments to be made international markets including Asia and
to develop infrastructure that enables production to increase and LNG exports to improve. Europe. Additionally, Eni and ExxonMobil
are awaiting approval for their $30 billion,
Sizeable LNG investments in Africa 15,2 MMtpa Rovuma LNG project, which
Notable investments made in gas production in Africa include Mozambique, in which $50 is anticipated to commence in 2029
billion has been committed for two large-scale LNG projects – the TotalEnergies-operated and increase Mozambique’s production
Mozambique LNG project and the ExxonMobil-operated Rovuma LNG project. capacity as well as exports. What’s more,
To date, Mozambique has been a relatively small gas producer. However, recent the now-operational 3,4 MMtpa Coral
discoveries associated with these two projects have increased the country’s gas reserves to floating LNG project in Mozambique will
100 trillion cubic feet (tcf) and investments are transforming the country as a global energy also start exporting in 2022.

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