12 °c
London
Wednesday, April 21, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Africa should create gas pricing index as demand rises – ministers

FurtherAfrica by FurtherAfrica
October 27, 2017
in Africa, Burkina Faso, Cameroon, Commodities, Congo, Economy, Energy, Equatorial Guinea, Finance, Gas, Ghana, Mali, Mozambique, Natural Resources, Nigeria, Senegal, Tanzania, Trade
Reading Time: 2 mins read
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Africa should develop a gas pricing index based on the cost of electricity set midway between existing global benchmarks to ensure fairer pricing in new export projects on the continent, two African ministers said.

The idea is being floated when the world’s poorest continent, where 600 million people are without electricity, is turning to liquefied natural gas (LNG) as a cheaper way to power up amid plentiful global supply.

Plans to boost African power generation by 30,000 megawatts by 2030 could translate into 42 million tonnes of additional LNG consumption a year, according to the U.S. Department of Energy.

“The pricing of the LNG coming into Africa is going to be more than 50 percent for electricity, so it will be fixed to the price of electricity,” Equatorial Guinea’s minister Gabriel Obiang Lima told Reuters during the Africa Oil Week conference.

“What we need to calculate is the pricing of the power to be able to have this index and that should be something between (the U.S. gas exchange) Henry Hub, which is very low, and the Asian index, so we are talking about a range of between $3-$7 dollars,” he said on the sidelines of the meeting in Cape Town.

Obiang Lima said trading firm Gunvor could peg some sales of LNG from its planned Fortuna facility in Equatorial Guinea, due to start in 2020, to the index.

Gunvor struck a deal to buy all of the plant’s output, but there is a provision allowing Equatorial Guinea and its partners to sell up to half the volumes within Africa.

Gunvor declined comment on the index issue.

Equatorial Guinea already exports LNG to countries that include South Korea and Argentina.

Angola and Nigeria are also major African LNG exporters, with Cameroon set to start this year. New LNG projects are planned in Senegal, Mozambique, Congo Republic and Tanzania.

Equatorial Guinea aims to export LNG to Africa for the first time, including to Mali, Burkina Faso and Ghana.

Africa’s natural gas consumption rose 20 percent from 2011 to 2014 from 3,909 billion cubic feet (bcf) to 4,689 bcf, according to the U.S. Energy Information Administration, still a tiny market but the world’s fastest growing.

In Nigeria, Seplat Petroleum expects demand to grow rapidly for use in energy, cement and fertiliser projects.

But the still small size of Africa’s gas market may make establishing an index difficult, industry experts said.

“It would be extremely difficult to find a unified pricing system in Africa at the source. If one day Africa is well-connected with pipelines and many different sources, then maybe an index,” said Mounir Bouaziz, Royal Dutch Shell’s vice president for new business development.

But Ghana’s energy minister, Boakye Agyarko, said an index could be developed as the continent’s gas projects grew.

“As all our resources come together from Senegal to Mozambique and Tanzania, we can aggregate all of this and begin to make an impact on the demand and supply equation and therefore we can build our own index,” the minister said.

Source: Reuters

Related

Tags: ArgentinaBoakye AgyarkoBurkina FasoCameroonCongoEquatorial GuineaGasGhanaGhana energy ministerGunvorLiquid Natural GasLNGMaliMozambiqueNigeriaSenegalSeplat PetroleumSouth KoreaTanzaniaカメルーンガーナコンゴセネガルタンザニアブルキナファソマリモザンビーク刚果加纳喀麦隆坦桑尼亚塞内加尔布基纳法索莫桑比克赤道ギニア赤道几内亚马里
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

China writes off $36m Mozambican debt

Next Post

Angola tax authority creates transfer pricing unit

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Mozambique

Mozambique: Five companies pre-selected to build solar plant

by FurtherAfrica
April 21, 2021
African Fintech: Growth, Profit and Forecasts
Finance

28 money transfer services checked for Africa: an extensive guide

by Jens Ischebeck
April 21, 2021
Mozambique

Mozambique: US$30M needed to rebuild Beira Airport

by Club of Mozambique
April 21, 2021
Procedure for registration of a Limited Liability Partnership in Nigeria
FDI

The role of government in securing FDI

by Africa Oil & Power
April 21, 2021
Angola’s Sonangol reiterates payment commitment of drill ships
Africa

Maersk Drilling secures US$24M Exploration Contract in Gabon

by Africa Oil & Power
April 21, 2021
Next Post
Only 10 out of 2000 Tanzanian companies pay mining taxes

Angola tax authority creates transfer pricing unit

Mozambique’s metical drops 21 pct in a week on economy fears

Mozambique cuts key lending rate to 22% on falling inflation

Weekend: looking for Dugongo

Weekend: looking for Dugongo

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?