EAST AFRICA ’ S ENERGY FUTURE SHINES BRIGHT
The eyes of international oil and gas investors are becoming increasingly fixed on Africa as an area of development , and on the East Africa region in particular – with good reason .
“ It ’ s no secret that the East African oil and gas sector has recently benefited from substantial FDI ,” says Paul Sinclair , Vice President of Energy at Africa Oil Week ( AOW ). “ These regional investments have reignited global appetite for East Africa , and this is reflected in the rising numbers of delegates applying to attend AOW to meet and do business with East African stakeholders .”
Indeed , a total of eight East African countries – Kenya , Uganda , Ethiopia , Somalia , Rwanda , Djibouti , Eritrea , and Burundi – will all have high-level ministerial and NOC representation at AOW in November 2021 . This incredible cohort demonstrates the region ’ s support for AOW ’ s temporary move to Dubai as a safety precaution . AOW has already committed to being back home in Cape Town , South Africa , from 2022 .
The list of regional energy authorities and NOCs attending the event is extensive , and includes AREEN , SIHD , EPRA , EWURA and UNOC .
“ CEOs and board-level executives are also participating from TotalEnergies , PGS , TGS , Tullow , Africa Oil Corp , Equinor , Eni and more ,” says Chris Hall , AOW ’ s Group Event Director . “ Their presence makes it clear why important figures such as Dr Estêvão Pale , Chairman and CEO of ENH , are attending AOW to promote oil and gas projects in Mozambique .”
Much of this interest has been spurred by the East African Community ’ s development of a strategy to facilitate the efficient and reliable delivery of oil products in the region . The strategy recommends developing a new refinery in Uganda ; accelerating a planned upgrade of the Mombasa refinery in Kenya ; and improving handling , transportation , storage , and distribution facilities across the region .
Investors are also observing important discoveries made in Uganda , Kenya , and Tanzania , which are expected to enhance East Africa ’ s potential to achieve energy self-sufficiency . Feasibility studies are under way for the construction of new crude oil pipelines in Uganda , for example , and contractors are being mobilised to extend existing oil product pipelines from Kenya to Uganda and Rwanda .
According to data and analytics firm GlobalData , the recent green light for the East African Oil Pipeline means that Uganda is set to produce its first oil as early as 2025 , with production expected to jump in the next five years to 230 000 barrels per day , from zero in 2021 .
GlobalData oil and gas analyst Conor Ward says : “ The Lake Albert oil development in Uganda will be one of the largest oil developments we have seen in Africa in the last 20 years , expecting to recover almost 1.5 billion barrels of oil . The Tilenga and Kingfisher fields ( part of the Lake Albert development ) will bring significant value to the government of Uganda , and the two fields alone could generate up to USD8-billion in fiscal revenues .”
These projects will contribute to planned expansions in other East Africa Community partner states , as well as other countries that rely on the region for petroleum imports .
Although East African countries are reliant on oil for their energy needs , the region is also beginning to look towards renewable energy as a viable path . Kenya , for example , is among five countries driving the current African solar energy market . Hydro and wind have also been prioritised .
To maximise these opportunities – as well as those still on the horizon – East African nations must harmonise their respective regulations to make sure the region is seen for the scalable investment destination that it is . Once this is done , the region ’ s potential will open up even more . All these issues and more will undoubtedly be discussed at AOW .
GAS PLANT TO SLASH CO 2
EMISSIONS AT GOLD MINE
In what is a world-first for global energy provider Aggreko , the company has introduced its latest highly efficient gas engines at a West Australian gold mine .
Whyte said the Liquefied Natural Gas ( LNG ) station project was another step in the company ’ s mission to help miners ’ get closer to their Net-Zero emission targets .
The power station , which uses a virtual pipeline of gas trucked over 650km , is expected to slash the mine ’ s carbon emissions ( CO₂ ) by 25 000 tonnes during the next five years .
Aggreko ’ s provision of modular energy services spans more than 80 countries , and it has serviced the mining industry for more than 30 years .
Aggreko Australia Pacific Managing Director George Whyte said the newly commissioned gas power station was built at Ora Banda Mining ’ s Davyhurst Gold Mine , which is about 150km north of Kalgoorlie in Western Australia .
34 • African Mining • November 2021
“ The Davyhurst gas power station is a great example of how a mine which previously operated on diesel wanted to operate on cleaner fuel and we were able to switch from diesel to gas ,” Whyte said .
“ Creating a virtual pipeline application is a way to switch from diesel to a cleaner fuel source and reduce carbon immediately without requiring any capital outlay or a physical gas pipeline .
“ The result at Davyhurst is a gas power station comprising five LNG generating sets and two diesel generating sets for a combined modular power output of 8.2 MW . Aggreko ’ s gas-fired power
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