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Algeria’s ability to supply more gas has become a strategic priority since its close ally Russia invaded Ukraine. But while Algiers claims a recent series of supply deals and co-operation agreements points to its critical role in meeting surging demand  in Europe, some things are not changing as quickly at state company Sonatrach as the positive headlines suggest, write James Gavin and Jon Marks, with additional reporting by Our Algiers Correspondent and John Hamilton.

Algeria
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Nigeria’s indigenous gas company has declared force majeure as floods disrupt virtually all of its feedgas supplies in the Niger Delta region. Nigeria Liquefied Natural Gas (NLNG) is currently reviewing the extent of the disruption with its suppliers. At least 30 states have been hit by severe flooding with several communities completely submerged.

Nigeria
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An Egyptian-led East Mediterranean gas hub hangs in the balance as the partners in Israel’s offshore Leviathan and Tamar gas fields weigh up their commercial options in the face of Cairo’s ambitions to dominate the market. It is the latest in a series of manoeuvres as eastern Mediterranean states – including Libya and Turkey – manoeuvre for position.

Egypt | Libya
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Ghana is preparing to offer new oil and gas exploration blocks in its eastern and western offshore basins, according to deputy energy minister Mohammed Amin Adam. The details of the blocks have not been revealed, but they will be awarded to operators through direct negotiations, rather than offered in an open bid round.

Ghana
Free

Chinese giants, sanctioned Russians, established operators and veterans from Cove Energy, the Irish independent which originated Mozambique's  historic gas play are amongst those competing for the highly prospective Rovuma basin blocks in the current licensing round. The range of players is a strong indicator of the high expectations for the next phase of upstream development. 

Mozambique
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Data trend

After three years of slow growth in adding generation infrastructure to the continent’s grids, capacity additions reached new lows in Q2 2021, with only 751MW of net on-grid capacity added – the lowest figure since at least 2013, according to African Energy Live Data. This was in part due to Covid-19, but other factors are at play too which suggest recovery will not be immediate

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A four-year emergency contract awarded to Turkey’s Karpowership highlights some of the challenges that face the Ivorian electricity industry, as supply in traditionally one of the continent’s best performing power sectors threatens to become unbalanced. Dan Marks looks into CdI’s supply-side options.

Côte d'Ivoire
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President Cyril Ramaphosa used his state of the nation address to set out measures the government is taking to combat the economic fallout of the Covid-19 pandemic, with energy close to the top of the list of priorities. New procurement may finally get under way soon, writes Dan Marks

South Africa
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Egypt’s latest licensing round includes three unexplored western Mediterranean blocks which represent the future for the country’s natural gas sector. Their fate is tied closely to Egypt’s wider domestic and regional energy strategy, which despite an energetic campaign of modernisation and renewal is still overshadowed by the mistakes of the first gas export drive in the late 1990s, writes John Hamilton.

Egypt
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President Samia Suluhu Hassan has made sweeping changes to the leadership of Tanzania’s energy sector in the post-Magufuli period but macroeconomic, political and legislative obstacles to deeper change will remain for some time, writes Dan Marks.

Tanzania
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The National Energy Regulator of South Africa (Nersa) has concurred with a decision by the Department of Mineral Resources and Energy (DMRE) to procure up to 11,813MW of new capacity. Concurrence from the regulator is necessary for the government to gazette the procurement and allow the process to formally begin. The decision follows another concurrence in June for 2GW to be procured through the risk mitigation IPP procurement programme (RMPPP).

South Africa
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Total on 17 July announced the signing of a $14.9bn senior debt financing agreement for Mozambique’s first onshore LNG development. The project financing for the $20bn development is the biggest ever secured in Africa and includes direct and covered loans from eight export credit agencies (ECAs) and 19 commercial bank facilities, and a $400m loan from the African Development Bank.

Mozambique
Issue 424 - 08 October 2020

Total unveils carbon strategy

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As European majors look to a lower carbon future, Total has underlined its continued commitment to Africa as part of its strategy for carbon neutrality by 2050. On 30 September, the French major outlined global plans to transform itself from an oil and gas company into a broader energy company by focusing on LNG and electricity. Total aims to increase energy production by a third in the next decade, roughly from 3m to 4m boe/d, with half of the expansion coming from LNG and half from electricity, mainly from renewables.

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The government is prioritising the reduction of its external debt and boosting Egypt’s profile as a location for foreign direct investment with its plans for the sale of the three large gas-fired power stations built by Siemens and its partners between 2015 and 2018. The deal will involve the new Tharaa sovereign wealth fund and is being contested by six international bidders.

Egypt
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The first units of the three gas-fired power plants under construction in Tripoli, Misrata and Tobruk will shortly be commissioned, according to statements from General Electric Company of Libya (Gecol).

Libya