African governments and regulators should adopt market-based regimes to stimulate the sustainable development of gas across the continent, international energy and infrastructure conglomerate, Sahara Group, has proposed
.The company said appropriate pricing of the commodity would enhance investment, increase production and grow consumption.
The Group said the inclusion of investors in gas policy development frameworks as part of the process would also enhance the sector’s capacity and competitiveness in Africa.
The Managing Director, Sahara Group Limited, Emmanuel Magani, made the proposals while speaking on the panel session on the subject, “The Game Changer: Enhancing African Gas Development Strategies and Investment Opportunities,” at the just-concluded African Energy Week, AEW 2023, in Cape Town, South Africa.
Magani said: “It is also important to have the private sector drive a lot of the gas projects. We have the West African Pipeline Project, WAGP that delivers gas to Benin, Togo, and Ghana which has the potential to further play a huge role in regional gas development given market-based regimes and adequate investments.”
“It is important to have the right type of market regime in order to ensure adequate returns to all key stakeholders. We need to have a market-based price regime to drive and support the level of infrastructure required to transform gas development and utilization in Africa. Gas can also play an increased role in Africa’s commitments to reduce carbon emissions.”
Citing a report by McKinsey & Co, which says Nigeria has installed capacity of about 40 – 60 gigawatts, GW, of petrol and diesel generators, Magani said switching that capacity to the electricity grid, would lead to an almost 33 metric tons of carbon dioxide emissions reduction annually- equivalent to about 12% of Nigeria’s current greenhouse gas emissions.
Similarly, he said substituting firewood, Charcoal, and kerosene with liquefied petroleum gas (LPG) would have a similar effect.
Magani noted that as a leading player in Africa’s oil and gas sector, including operations in Asia, Europe, and the Middle East, Sahara Group has continued to seek investments and collaboration towards positioning gas is a key resource for transitioning to net zero.
Sahara Group, he assured, remains committed to providing adequate energy for different purposes, including industrialization and domestic cooking.
Through its LPG operations contributing remarkably to efforts aimed at ending firewood and charcoal utilization, Magani said the company was putting up the right infrastructure to drive storage, distribution, and access to LPG in Africa.
In the power sector, he said Sahara Group has provided 20 to 25 percent of Nigeria’s electricity supply daily n Nigeria, adding that one out of four electricity bulbs in the country is powered by the company.
“The number will be higher as we continue to expand. We work closely with other stakeholders in Africa to promote our vision of bringing energy to life responsibly, leaving no one behind,” he added.