Eastern Africa Will Head Future of African Natural Gas Market
Ernst & Young released a new report at Africa Oil & Gas Week in late October that declared Africa’s oil and natural gas resources attractive to many investors for a variety of reasons.
“Natural gas in Africa – The frontiers of the Golden Age,” the 2012 report, says local players in the oil and gas spectrum will experience growth as well as larger longstanding companies. Eastern Africa’s natural gas sector is one huge driver in the growth of the continent, says Ernst & Young Oil & Gas Leader Elias Pungong. He says the natural gas will lead social development, local employment and infrastructure development.
The discovery of offshore gas in Eastern Africa, notably Mozambique and Tanzania, is a promising leader for the future, although currently, West African gas growth has been developing at a faster pace. Nigeria and Angola lead the continent in gas production, accompanying a deepwater oil boom recently. The Ernst & Young report says Algeria, Nigeria and Egypt have the highest reserves although production has not yet met levels in other countries.
The report says opportunities will abound for oilfield services for both international players and local companies that can play parts within the supply chain. Broader infrastructure across the continent will build export facilities, both for liquefied natural gas and pipeline and gas distribution networks, supporting local gas demands.
“African governments and regional NGOs will of course have critical roles to play – first and foremost, developing a meaningful and practical master gas development plan, one that addresses the upstream tax and licensing models, as well as the necessary infrastructure issues and investments, and local training and job creation issues,” Pungong says. “Collaboration and partnerships with the IOCs, both big and small, will likewise be critical.”
The new discoveries in Eastern Africa bode well for the natural gas sector in Africa as a whole, which will stand to build infrastructure within the continent and strengthen the economy.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.