Nigeria’s Riverside LNG Nears Historic Deal To Supply Gas to South Africa

Date:

Dec 28,2023.

Thank you for reading this post, don't forget to subscribe!

Nigeria-based Riverside LNG has said it’s in talks to supply gas to South Africa, in what would be the first such deal between the two countries, Bloomberg reported on Wednesday.

The company earlier this year signed a gas-export partnership agreement with Johannes Schuetze Energy Import AG of Germany and is now looking for deals on the continent, Chief Executive Officer, David Ige, said in an interview in the capital, Abuja.

Ige is a former Group Executive Director of the Nigerian National Petroleum Company Limited (NNPC) and is widely recognized for initiating and developing the Nigeria Gas Master Plan.

Nigeria has Africa’s largest gas reserves and is largely regarded as having more gas than oil, although more attention has been paid to oil exploration over the years.

“We’d probably very early in the year close out another segment of the market, an off-take for South Africa,” said Ige.

“There’s a massively evolving gas market in the region, around 3,000 nautical miles of Nigeria. So that covers southern Africa, western Africa, all to northwest Europe and to the Caribbean and South America broadly,” he added during the interview.

Ige declined to provide further details on the talks with South African counterparts, citing confidentiality clauses. The company is also exploring opportunities in Liberia and Cameroon.

South Africa faces chronic power outages with the country’s old and poorly maintained power stations, run by debt-stricken state utility Eskom Holdings SOC Ltd., unable to keep up with demand.

Plans to buy more electricity from private producers have been delayed by grid constraints and court action.

“South Africa currently doesn’t have a facility to receive LNG. Deliveries from the project won’t start until 2027, so there’s “enough time for import terminal infrastructure,” Ige said.

The country relies on coal for four-fifths of its power generation, but with investments unlikely in the sector, it is now looking at renewable sources to generate as much as 60 gigawatt of its power needs by 2030.

A report produced by BloombergNEF and Bloomberg Philanthropies found that battery storage and flexible gas plants are the most cost-efficient solution to complement growth in solar and wind generation and guarantee power supply.

The 16-member Southern African Development Community (SADC) had backed a $17 billion natural gas infrastructure plan to bolster energy supplies in the region, approving a blueprint to invest in infrastructure such as pipelines and terminals for local and imported supplies.

“A lot of those countries are looking to go gas,” Ige said. “We see a huge opportunity for Nigeria in being a trading hub,” he added.

Although a major holder of the world’s gas reserves, Nigeria has been unable to fully take advantage of its abundant gas resources mainly due to lack of investments, leading to a deficit in gas transportation infrastructure.(www.naija247news.com)

Peter Okafor
Peter Okaforhttp://Naija247news.com
Peter Okafor Financial Journalist | Editor | Contributor Overview: Peter Okafor is a seasoned Financial Journalist, astute Editor, and valued Contributor at Naija247news Media Group. With an unwavering passion for dissecting complex financial landscapes, Peter has become a trusted name in delivering incisive and insightful coverage of economic events, market trends, and corporate dynamics. Professional Journey Peter's journey in financial journalism has been marked by a commitment to excellence. Joining the ranks of Naija247news, he has consistently demonstrated a keen understanding of the intricate interplay between finance and the global socio-economic fabric. Expertise: Specializing in financial markets, economic analyses, and business developments, Peter Okafor has honed his expertise over the years. His ability to unravel intricate financial narratives and present them in a comprehensible manner sets him apart in the world of financial journalism. Contributions As an Editor and Contributor, Peter has played a pivotal role in shaping the narrative of Naija247news. His contributions extend to thought-provoking articles, in-depth market analyses, and coverage of key events that impact the financial landscape. Educational Background: Peter holds a degree in Journalism, complemented by specialized courses in Finance and Business Reporting. His educational foundation has provided him with the tools to navigate the intricate world of financial journalism. Innovation and Adaptability: In an era of evolving media landscapes, Peter Okafor exemplifies innovation and adaptability. Leveraging digital platforms and emerging technologies, he ensures that financial insights reach a diverse audience, fostering financial literacy and awareness. Awards and Recognition: Peter's commitment to journalistic excellence has not gone unnoticed. He has been the recipient of several awards, recognizing his outstanding contributions to the field of financial journalism. Vision for the Future: Looking ahead, Peter Okafor envisions a future where financial journalism continues to empower individuals, shape economic policies, and drive positive change. His dedication to staying at the forefront of financial news underscores his commitment to this vision. Connect with Peter Okafor: - LinkedIn: [Peter Okafor](#) - Twitter: [@PeterOkafor_N247](#) In the dynamic realm of financial journalism, Peter Okafor stands as a stalwart, combining experience, expertise, and a forward-looking vision to illuminate the path of financial understanding for a global audience.

Share post:

Subscribe

Popular

More like this
Related

NBC opens recycling bank in Lagos

February 21, 2024. Azonuchechi Chukwu. The Nigerian Bottling Company (NBC) Ltd....

FGN bonds: DMO raises N1.4 trn in February auction

February 21, 2024. Azonuchechi Chukwu. The Debt Management Office (DMO) said...

Enugu Police Rescue 20 Kidnap Victims, Arrest 83 Suspects

February 21, 2024. Azonuchechi Chukwu. The Police Command in Enugu State...

Tinubu Promises Millions of Jobs By Unlocking Trillions In Public Wealth To Boost Nigeria’s Economy

Feb 21,2024. President Bola Ahmed Tinubu has disclosed that his...
WP to LinkedIn Auto Publish Powered By : XYZScripts.com