Posted on Jun 29, 2022
War in Ukraine is driving demand for Africa's natural gas. That's controversial
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https://www.npr.org/2022/06/29/ [login to see] /war-in-ukraine-is-driving-demand-for-africas-natural-gas-thats-controversial
As Europe scrambles to replace the Russian natural gas that funds Moscow's war effort, fossil fuel companies are using this moment to push for new gas projects all over the world. Much of the industry lobbying centers on almost a dozen countries in sub-Saharan Africa.
The European Union's new blueprint for getting the bloc off Russian gas highlights sub-Saharan Africa for "untapped LNG potential," referring to liquified natural gas which is imported by ship. This spring the Italian foreign minister visited Angola and the Congo to sign new LNG deals, and the German Chancellor traveled to Senegal for gas talks last month.
American and European energy executives have been landing in private jets across Africa, to persuade governments to accelerate projects they say would feed Europe's desperate demand for gas.
One of those energy companies is Italy's ENI, which is fast-tracking plans for LNG in Congo, and has signed new gas contracts there and in Angola since Russia invaded Ukraine.
"We have of course accelerated deals there in the last month," says Guido Brusco, ENI's chief operating officer natural resources. "Clearly the crisis gave a priority lane."
As Europe scrambles to replace the Russian natural gas that funds Moscow's war effort, fossil fuel companies are using this moment to push for new gas projects all over the world. Much of the industry lobbying centers on almost a dozen countries in sub-Saharan Africa.
The European Union's new blueprint for getting the bloc off Russian gas highlights sub-Saharan Africa for "untapped LNG potential," referring to liquified natural gas which is imported by ship. This spring the Italian foreign minister visited Angola and the Congo to sign new LNG deals, and the German Chancellor traveled to Senegal for gas talks last month.
American and European energy executives have been landing in private jets across Africa, to persuade governments to accelerate projects they say would feed Europe's desperate demand for gas.
One of those energy companies is Italy's ENI, which is fast-tracking plans for LNG in Congo, and has signed new gas contracts there and in Angola since Russia invaded Ukraine.
"We have of course accelerated deals there in the last month," says Guido Brusco, ENI's chief operating officer natural resources. "Clearly the crisis gave a priority lane."
War in Ukraine is driving demand for Africa's natural gas. That's controversial
Posted from npr.org
Europe
Russia
Oil and Energy
Africa
Posted 2 y ago
Responses: 2
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PO1 William "Chip" Nagel
..."New African gas projects may end up obsolete
Late last year, the environmental group Friends of the Earth filed a lawsuit in Britain's High Court hoping to stop the U.K. government from giving over $1 billion in financing to TotalEnergies' $20 billion project in Mozambique. The company's CEO has said it aims to restart construction this year.
The suit argued that the U.K. government wrongly assessed the Mozambique LNG project to be compatible with the 2015 Paris climate agreement. One of the two judges agreed with Friends of the Earth, which is appealing the decision.
As more financing challenges mount against fossil fuel projects, there's growing concern that new African LNG plants could become stranded assets, Olan'g says. Stranded assets refer to oil and gas infrastructure that may become worthless when the world shifts away from fossil fuels.
Anderson of Kosmos Energy says his company is launching their projects in phases so they deliver gas more quickly. "[If] you know that you're supplying a need in the market for 5, 10, 15 years, then they're not going to be stranded assets," he says.
ENI is investing in projects set to keep producing well into the 2040s. "We see the challenge, but we feel confident that we will overcome this and will not have stranded assets in our portfolio," Brusco says.
Olan'g says if the projects become stranded, international oil companies could bear responsibility for making African countries believe that this new gas is a safe long-term investment. "I think the government might regret if they actually invest huge public funds into developing these resources which might end up being stranded."
..."New African gas projects may end up obsolete
Late last year, the environmental group Friends of the Earth filed a lawsuit in Britain's High Court hoping to stop the U.K. government from giving over $1 billion in financing to TotalEnergies' $20 billion project in Mozambique. The company's CEO has said it aims to restart construction this year.
The suit argued that the U.K. government wrongly assessed the Mozambique LNG project to be compatible with the 2015 Paris climate agreement. One of the two judges agreed with Friends of the Earth, which is appealing the decision.
As more financing challenges mount against fossil fuel projects, there's growing concern that new African LNG plants could become stranded assets, Olan'g says. Stranded assets refer to oil and gas infrastructure that may become worthless when the world shifts away from fossil fuels.
Anderson of Kosmos Energy says his company is launching their projects in phases so they deliver gas more quickly. "[If] you know that you're supplying a need in the market for 5, 10, 15 years, then they're not going to be stranded assets," he says.
ENI is investing in projects set to keep producing well into the 2040s. "We see the challenge, but we feel confident that we will overcome this and will not have stranded assets in our portfolio," Brusco says.
Olan'g says if the projects become stranded, international oil companies could bear responsibility for making African countries believe that this new gas is a safe long-term investment. "I think the government might regret if they actually invest huge public funds into developing these resources which might end up being stranded."
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Why is it controversial? Because these countries can use this to buy much needed food for their citizens?
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