Dr. Akinwunmi Adesina, the leader of the African Development Bank (AfDB) Group, expressed that natural gas is essential for Africa to enhance its renewable energy capabilities.
He made these remarks during an interview held outside the ongoing COP 27 summit in Egypt.
Dr. Adesina asserts that ensuring sufficient energy necessitates the utilization of natural gas:
“Africa requires natural gas to augment its renewable energy. Even if Africa were to increase its natural gas output threefold from current figures, its share in global emissions would only increase by 0.67%.
“Natural gas is crucial to stabilizing the electricity supply due to the fluctuating nature of renewables. We must acknowledge the unique position of Africa. The continent experiences the highest rates of energy deprivation globally.
“I am particularly focused on how Africa can leverage natural gas as part of its energy strategy to deliver electricity to the 600 million individuals currently lacking access to it.”
The integration of natural gas within Africa’s energy strategy to supply power to the 600 million individuals without current access intrigues me.
He further stated that Africa should not be penalized for utilizing gas to enhance renewable energy sources.
African countries can utilize their natural gas resources for local consumption as well as provide energy to the European Union, which is facing a shortage due to the ramifications of the Russia-Ukraine war that commenced in Q1 of 2002.
AFC endorses strategy
A Pragmatic Path to Net Zero is the title of a recent whitepaper published by the Africa Finance Corporation (AFC) outlining a framework for Africa’s advancement. This document asserts that Africa must capitalize on its abundant natural gas reserves to support industrialization.
Interestingly, the European Commission backs this stance as it has recently recognized natural gas as a green energy resource and a pivotal transition fuel in the journey towards decarbonization.
The AFC whitepaper also indicated that employing natural gas for industrial activities is feasible without significantly escalating global carbon emissions. African nations can heighten their investments in renewable energy to finalize the transition, considering that industrialization is crucial for the continent to ensure job creation and economic development.
EU’s urgency for African gas
Several corporations headquartered in the European Union (EU) have secured extra liquefied natural gas (LNG) supplies through tenders and short-term LNG agreements, per the International Energy Agency’s (IEA) natural gas market report for Q4/2022.
In addition to the unprecedented influx of LNG, EU member states have started to diversify their imports from pipeline suppliers beyond Russia. Compared to its five-year average, the European Union has set a voluntary target to reduce its gas consumption by 15% between 1 August 2022 and 31 March 2023.
The Organization of Petroleum Exporting Countries’ (OPEC) October 2022 World Oil Outlook states that natural gas will surpass coal as the second-largest energy source in the global energy mix by 2030. The forecast projects that the gas demand will rise by 19.6 million barrels of oil equivalent per day (mboe/d) to 56.3 mboe/d by 2045, driven by requirements across various sectors. According to the forecast, natural gas will eventually replace coal and traditional biomass as the preferred fuel, displacing them in the years to come.
