Nigeria, Egypt, Mozambique and one other African country are expected to attract nearly $103 billion investments from Liquefied Natural Gas (LNG) projects this year (2019). This is according to a statement released by LNG.
The statement released ahead of the 5th Gas Summit of the Gas Exporting Countries’ Forum in Malabo, Equatorial Guinea, noted that the investments, which will come as a result of the increasing demand for gas, is an evidence that gas liquefaction is viewed as the most profitable strategy for realising Africa’s gas potential.
“Africa is an exciting frontier in the global natural gas sector. The continent holds 7.1% of proven global gas reserves and is expected to contribute nearly 10 per cent of global production growth through to 2024,” the statement said.
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According to the statement, Africa’s large, urbanised and industrialised societies of the future would require reliable and sustainable power generation.
What you should know: Africa is an exciting frontier in the global natural gas sector. The continent holds 7.1% of proven global gas reserves and is expected to contribute nearly 10% of global production growth through to 2024.
Nigeria’s record supply side: Nigeria accounts for over 50% of current LNG production capacity on the continent. The final investment decision on the $12 billion expansion of the country’s liquefaction plant at Bonny Island in Rivers State will be made in October 2019.
The Train 7 expansion project would increase Nigerian LNG’s production capacity by 35%, from 22 million tons per annum to 30 million. Current indications point to a positive verdict. The 20-year-old facility is owned and operated by a consortium which includes NNPC, Shell, Total and Eni.
Prior to this development, Dr. Maikanti Baru, the former Group Managing Director of the state-owned Nigerian National Petroleum Corporation (NNPC), had disclosed that Nigeria’s oil and gas sector is expected to attract $48.4 billion (about N17.29 trillion) out of the industry’s $194 billion (about N69.84 trillion) capital investment flow into Africa by 2025.