• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 13 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 9 hours What If Canada Had Wind and Not Oilsands?
  • 4 hours U.S. Withdraws From U.N. Human Rights Council
  • 2 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 3 hours Gazprom Exports to EU Hit Record
  • 2 hours EVs Could Help Coal Demand
  • 15 hours Sell out now or hold on?
  • 17 hours Nopec Sherman act legislation
  • 11 hours WE Solutions plans to print cars
  • 15 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 11 hours Oil and Trade War
  • 5 hours Lloyd's of London excludes coal
  • 11 hours Australia mulls LNG import
  • 11 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 11 hours Oil prices going down
The Decisive Battle For Yemen’s Oil Port

The Decisive Battle For Yemen’s Oil Port

Saudi Arabia and its Arab…

Oil Demand Growth Could Start To Soften Soon

Oil Demand Growth Could Start To Soften Soon

Non-OECD markets are one of…

U.S. To Move In On Africa’s LNG Market

LNG

Africa could become the next market for growing U.S. exports of liquefied natural gas, Energy Secretary Rick Perry told media at the Africa Oil Week in Cape Town. The official discussed LNG exports with a number of African government officials, including ones from Nigeria, the Ivory Coast, and South Africa.

“We talked about a lot of opportunities -- LNG, coal, but it all goes to the issue of power and power being able to be delivered into places that don’t take electricity for granted," Perry said.

As many as six hundred million people in Africa lack direct access to electricity, which is what many these new exports will go towards generating. South Africa already has plans in place to buy LNG from Cheniere Energy, and other LNG producers are preparing to bid in tenders in Africa. Still others—including Exxon—are interested in developing the continent’s own natural gas resources.

Indeed, Africa’s gas market is still nascent, but it has substantial growth potential thanks, above all, to the fast growth in electricity demand and the fact that as a power generation fuel, natural gas and LNG are significantly cheaper than oil. For now, this market is the fastest-growing in the world.

Related: The Impact Of EVs On Commodities In One Chart

There are plans to increase Africa’s power generation to 30 GW by 2030, which would mean an additional consumption of 42 million tons of LNG annually. This sharp increase in LNG shipments as well as the launch of local projects would create the need for a gas pricing index, two government officials from the continent told Reuters at the Africa Oil Week.

Africa already has some big LNG exporters, including top oil producers Angola and Nigeria, but also Equatorial Guinea and, from this year, Cameroon. LNG projects are planned in four more African countries, including Tanzania, Mozambique, Senegal, and Congo Republic.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment
  • Naomi on October 27 2017 said:
    Qatar played monopolist and limited supply to raise prices. The world is swimming in natural gas. The limiting factor is capital investment in wells, pipelines, and LNG transport.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News