enabling investment in gas projects in africa - lng
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Cape VI 6th African Petroleum Congress and Exhibition, Abuja, 15th -17th March
“Enabling Gas Projects in Africa - LNG”
Babs OmotowaMD/CEONigeria LNG
$10,325.6 62 GW
$42,732.6 177 GW
$3,203.3 6.1 GW
$12,509.5 35 GW
$36,194.4 293 GW
$3,198.7 29 GW
Ethiopia $573.6 2.5 GW
South Africa $1,721.6 45 GW
World - Energy and GDP per Capita
Higher energy Intensity level corresponds to higher GDP per capita GDP/Capita
Power Generation
NASA
Africa total is 143 GW
Africa - Energy Crisis
75% of Africa in darkness (lowest GDP) … France alone produces equivalent of Africa’s total generation
Energy – Gas Fastest Growing
Cheapest Fossil Fuel Abundant for centuries Cheaper and Efficient Security of supply Flexibility via Pipeline,
LNG/NGLs.
Power Industries -
Petrochemical, LNG, GTL Cooking and heating Transport
SA485
Shale - tcfAlgeria
231
Libya290
Africa has Gas
Africa consumes ~50% of gas produced
Gas projects can help reduce the power problem in Africa.
>1500km, LNG cheaper
LNG is faster to put in place
Pipeline prone to sabotage
Limited environment issues
Gas Transportation
Equatorial Guinea
22 mtpa40.4 mtpa
30.15mtpa
5.2mtpa
12.2 mtpa2.3 mtpa
10 mtpa
20 mtpa
3.7 mtpa4.4 mtpa
Algeria
Libya Egypt
Angola
Nigeria
Mozambique
Tanzania
Current Capacity
Planned Capacity
Africa LNG Plants
Africa Exported 36.6MT (70MT Capacity) in 2014 (15% of Global)
FDI key for project financing in Africa which runs into billions of dollarsFDIs to Africa has ranged between 4 and 5% (i.e. ~$50billion) of total global investmentsInstitutional & regulatory environs still a challenge
Attracting investments
Case Study – Nigeria LNG Limited
• $7billion in FDI from 1995 • $90bln revenue (so far)• $19bln Asset base (FDI) - 6 Trains, 23 Ships• 4th largest LNG plant in the world
Critical Success Factors• Stability • Independence • Technical depth• Governance • Financial capacity
Time to Invest – Raw materials
Price of iron ore at T3 FID Price of iron ore now similar level as at T3 FID
Conclusion
12
Gas can play big role in development of AfricaThis requires huge investment and conducive environmentNLNG is a successful modelNow is the time to invest – The world will not wait for us
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