A Nigeria based gas production company, Riverside LNG, has stated it remains in talk with provide gas to South Africa, in what would be the very first such offer in between the 2 nations.
Riverside LNG had previously this year signed a gas-export collaboration arrangement with Johannes Schuetze Energy Import AG of Germany and is now trying to find offers on the continent, the Chief Executive Officer of the company, David Ige, stated in an interview with Bloomberg.
Nigeria has Africa’s biggest gas reserves, as the nation has about 206 trillion cubic feet of gas reserves, making it a country with more gas reserves than oil.
“We ‘d most likely extremely early in the year liquidate another sector of the marketplace, an off-take for South Africa,” stated Ige, a previous executive at the Nigerian National Petroleum Corporation, now called Nigerian National Petroleum Company Limited.
“There’s an enormously progressing gas market in the area, anything around 3,000 nautical miles of Nigeria. That covers Southern Africa, Western Africa, all to North-West Europe and to the Caribbean and South America broadly,” Ige included.
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South Africa deals with persistent power blackouts with the nation’s old and badly kept power stations, not able to stay up to date with need.
South Africa presently does not have a center to get Liquefied Natural Gas. Shipments from the job will not begin up until 2027, so there’s “adequate time for import terminal facilities,” Ige stated.
The nation counts on coal for four-fifths of its power generation, however with financial investments not likely in the sector, it is now taking a look at eco-friendly sources to produce as much as 60 gigawatt of its power requires by 2030.
The Federal Government and personal operators in the oil and gas sector have actually been making efforts to increase gas production in-country.
On December 21, 2023, for example, the federal government mentioned that the importation of Liquefied Petroleum Gas, widely called cooking gas, would minimize after the Christmas break, as the Port Harcourt refinery would begin draining improved items.
The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, had actually mentioned that the Port Harcourt refinery would produce cooking gas, including that this would lead a decrease in the importation of the product.