Oil & Gas
REPRESENTING both a low-carbon and widely accessible energy resource, natural gas has emerged as a critical driver of sustainable development in Africa. The continent’s energy security and just transition ambitions can both be met with the monetization of gas, and during the African Energy Week, AEW, 2023 conference this week – organized by the African Energy Chamber, AEC, – Gazprom Export CEO Dmitry Khandoga emphasized this very notion. Khandoga held an on-stage conversation with AEC Executive Chairman NJ Ayuk.
Russian-based global energy company Gazprom has long-represented one of the biggest gas producers worldwide and the company has effectively monetized resources for the development of the Russian economy. The company is committed to strengthening its contribution and influence in Africa and is seeking partnerships to help grow the African gas market.
According to Khandoga, “Gazprom is not interested in pumping resources out of Africa. We are ready to share our solutions for the effective utilization of natural gas.”
The company has effectively managed to monetize Russia’s gas resources for the benefit of the country. Khandoga explained that, “Meeting the Russian demand for energy has and will always be the greatest priority for Gazprom…From the very beginning, the company has produced stable prices for the market which has served as an important factor for the development of the Russian economy.”
For Africa, natural gas represents the best solution to achieving continent-wide energy security and economic growth. The continent holds over 620 trillion cubic feet, tcf, of proven gas resources. Ongoing upstream campaigns are poised to increase this figure substantially, with Nigeria alone expected to increase proven resource levels from 200 tcf to 600 tcf following the completion of exploratory surveys.
“[Africa] possesses colossal quantities of natural gas. There is no other place in the world where the use of gas as a clean fuel would open such a wide range of opportunities,” Khandoga remarked. “Gas is efficient for power generation, efficient as a motor fuel and efficient for households, replacing biomass and wood. Gas is always resourceful for a whole range of chemical products required by many industries.”
Ayuk posed two questions: why does Gazprom have such a long-term approach to gas if demand is supposedly falling and when we can expect a Gazprom-led gas project in Africa.
On the demand side, Khandoga explained that the company actually “expects significant increases in gas consumption. We believe in gas and the numbers show that it is the right thing to believe in. Global economies are voting for gas. Gas is the technology ready to solve all of the issues in any sphere, from energy poverty to climate change.”
Meanwhile, on the project side, he stated that, “We are discussing with a number of African partners about gas as a motor fuel, and in the coming months, we hope to make an announcement.”
For African countries, Gazprom represents the partner of choice as they advance global gas development plans. “We are ready to share our expertise in order to provide energy security for the continent,” Khandoga concluded.
#AEW2023 takes place this week in Cape Town under a mandate to make energy poverty history by 2030. Keep following www.AECWeek.com for more exciting information and updates about Africa’s premier energy event.
Distributed by APO Group on behalf of African Energy Chamber.
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-October 18, 2023 @ 11:04 GMT |
Tags: Dmitry Khandoga Gazprom NJ Ayuk
