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Gas provision negotiations for South Africa

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By Mercy Kelani

First collaboration in this domain between Nigeria and South Africa.

Riverside LNG, a company hailing from Nigeria, has revealed ongoing negotiations regarding the provision of gas to South Africa. This potential agreement would mark a ground-breaking milestone, constituting the very first collaboration in this domain between these two nations. During an interview in Abuja, Chief Executive Officer David Ige affirmed that the company had recently established a gas-export collaboration with Johannes Schuetze Energy Import AG of Germany and is currently seeking additional opportunities across the continent.

Nigeria, known for possessing the largest gas reserves in Africa, remains at the forefront of their expansion plans. Ige, a former executive at the Nigeria National Petroleum Corp, mentioned that in the beginning of the year, they are likely to conclude another part of the market, where South Africa would be the recipient. According to Ige, the gas market in the region is rapidly developing, encompassing an area spanning approximately 3,000 nautical miles from Nigeria.

South Africa lacks the means to receive LNG at the moment.

This includes southern Africa, western Africa, as well as northwest Europe, the Caribbean, and South America in a general sense. Chief Executive Officer, David Ige, has chosen not to disclose any additional information regarding the discussions held with South African colleagues, due to the presence of confidentiality clauses. Additionally, the company is actively investigating potential prospects in Liberia and Cameroon. Grid constraints and legal disputes have hampered South Africa’s efforts to address its chronic power outages.

The nation’s outdated and inadequately maintained power stations, operated by Eskom burdened with debt, struggle to meet the rising demand for electricity. Delayed plans to acquire additional power from private producers have only exacerbated the situation. Ige mentioned that South Africa lacks the means to receive LNG at the moment and stated that the shipments from the project are scheduled for 2027. As a result, there is ample time to develop the necessary import terminal infrastructure.

Adoption of a comprehensive blueprint that includes investment.

Coal accounts for 80% of the power generation of the country, but without any expectations of future investments in this sector, the focus has shifted towards renewable energy. The aim is to meet up to 60 gigawatts of the country’s power requirements through renewable sources by 2030. According to a study conducted by BloombergNEF and supported by Bloomberg Philanthropies, it has also been established that battery storage and flexible gas plants offer the most economical solution.

Also, this economical solution supports the expansion of solar and wind energy production while ensuring a reliable power supply. In a move to enhance energy provisions within the region, the Southern African Development Community, consisting of 16 members, has unanimously supported an extensive $17 billion natural gas infrastructure scheme. This strategic decision entails the adoption of a comprehensive blueprint that includes investment in crucial elements like pipelines and terminals for both domestic and imported gas supplies.

Nations are eager to transition to gas as their primary energy source.

Furthermore, he mentioned that there are many nations that are eager to transition to gas as their primary energy source. Nigeria, he pointed out, has a remarkable chance to carry out an establishment of itself as a central trading hub, presenting a substantial opportunity. In this realm that humans inhabit, the lines between truths and fantasies tend to intertwine. The decisions one makes about whom to place their trust in can significantly shape the course of their lives.

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2 months ago

Gas provision negotiations for South Africa.First collaboration in this domain between Nigeria and South Africa.Express your point of view.

2 months ago

Discussions on South Africa’s gas supply. South Africa and Nigeria’s first cooperation in this field It is important that we and South Africa negotiate the supply of gas as soon as possible. Furthermore, we should never stop encouraging these two nations to work together.

Adeoye Adegoke
2 months ago

It’s exciting to see the potential for collaboration in this domain between the two countries.
As Africa’s largest economy, Nigeria has significant gas reserves, while South Africa has a growing demand for energy. This collaboration could be mutually beneficial, with Nigeria supplying gas to meet South Africa’s energy needs and South Africa providing investment opportunities for Nigeria’s gas sector.
Expanding the gas trade between Nigeria and South Africa can enhance energy security, promote economic growth, and strengthen regional cooperation. It can also contribute to reducing reliance on more polluting energy sources and support efforts towards a cleaner and more sustainable energy future.
By working together, Nigeria and South Africa can pave the way for further collaboration in the energy sector and contribute to the overall development and prosperity of the African continent.
I’m excited to see how this collaboration unfolds and the positive impact it can have on both countries and the region as a whole!

2 months ago

Both parties stand to gain from this partnership, as South Africa offers investment opportunities for Nigeria’s gas sector while Nigeria supplies gas to meet South Africa’s energy needs.
In addition to enhancing energy security, increasing gas trade between South Africa and Nigeria can spur economic expansion.A lot of countries who are keen to switch to gas as their main source of energy

2 months ago

This collaboration between Riverside LNG and South Africa in the gas sector is a positive development. It opens opportunities for both nations and aligns with Nigeria’s potential as a central trading hub in the evolving energy landscape. It’s crucial for addressing South Africa’s power challenges and supports the broader shift to renewable energy in the region.