Share

East Africa seen as new frontier for gas

Johannesburg - East Africa has emerged as the new frontier for natural gas production, boosted by offshore discoveries in Mozambique, Tanzania and Madagascar, an Ernst & Young report said on Tuesday.

According to the audit firm's report, "the most dynamic recent developments in the African natural gas sector have been in East Africa," despite most of the major players coming from further north.

In the last five years, energy firms including Italy's ENI and US group Anadarko Petroleum have reported several large-scale offshore gas finds in northern Mozambique's Rovuma basin and Mamba fields.

Recoverable gas reserves in Rovuma is estimated at three trillion cubic meters, the report said.

Leading global oil groups are getting in on the act as discoveries in Madagascar and Kenya have upped the ante.

In Tanzania, BG Group, Ophir Energy, Statoil and ExxonMobil have all found "major gas deposits."

The report described east Africa as the "next epicentre" for global natural gas, something which was "non-story" ten years ago.

"With the huge recent discoveries in offshore East Africa (in particular, Mozambique and Tanzania), the future of African gas is, however, expected to shift eastward," said the report.

Gas production in Africa since 2000 has been growing by about 4% per year, with exports destined for the Asian market.

"African gas production reached about 203 bcm (billion cubic metres) in 2011, with production led by Algeria, Egypt and Nigeria, collectively accounting for more than 88% of the continent's total," it said.

The report also noted untapped shale gas resources in South Africa which have been the subject of a controversial debate.

Environmentalists opposed exploration in the vast semi-arid region of Karoo, in the northern Cape, prompting the government to impose a moratorium on the technique known as fracking. The freeze was lifted last month however.

According to consultants Wood Mackenzie, the ease of access to Asian markets and a break-even point that is substantially lower than rival Australia could help natural gas exports.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,016.25
+1.4%
Gold
2,220.77
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders