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South Africa can Realize its Gas Potential with a Balanced Gas-to-Liquids Strategy (By NJ Ayuk)

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African Energy Chamber

South Africa’s gas potential is currently locked up, partly because of legal challenges initiated by environmental activist groups that halted projects to the tune of USD1.6 billion, but also due to the inability of all parties involved to come to an agreement

JOHANNESBURG, South Africa, November 13, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/)

 

It is not an exaggeration to say that South Africa’s offshore gas discoveries offer up a potential economic transformation for the country that would be on par with Guyana’s oil-driven boom or Suriname’s emerging energy sector.

Estimates for the Luiperd-Brulpadda gas-condensate project, in Block 11B/12B off South Africa’s southern coast, gauge its holdings at 3.4 trillion cubic feet (tcf) of gas and 192 million barrels of gas condensate. Production at this site would equate to thousands of jobs and a revitalization of regions like Mossel Bay, where South Africa’s gas-to-liquids refinery once fueled local employment and industry before declining production forced cutbacks.

Unfortunately, this could all be just wishful thinking, as TotalEnergies’ exit from this project in 2024 revealed a critical barrier.

South Africa’s gas potential is currently locked up, partly because of legal challenges initiated by environmental activist groups that halted projects to the tune of USD1.6 billion, but also due to the inability of all parties involved to come to an agreement on gas purchase pricing.

The GTL Solution 

A gas-to-liquids (GTL) strategy — one that links prices to liquefied natural gas (LNG) spot markets and includes meaningful community engagement — would help balance the needs of upstream investors, downstream users, and the coastal communities while delivering sustainable growth for the rest of the nation.

The gas pricing dilemma is the main obstacle.

Upstream companies like TotalEnergies demand dollar-based contracts to mitigate currency risk and ensure returns on their substantial exploration investments. The South African government is justifiably wary of dollar-denominated agreements and would prefer rand-based prices to protect local consumers and maintain affordability. The impasse TotalEnergies encountered on this issue is one of the factors behind their withdrawal from Block 11B/12B, despite their promising, hard-won discoveries at the site.

 

The domestic market complicates the situation even further.

Electricity producers require low gas prices, as they operate on slim margins once carbon costs are accounted for. Upstream operators, on the other hand, need to collect higher prices to justify the development of their capital-intensive deepwater projects. Meanwhile, the global LNG market is expected to remain saturated for the next three to five years, making the export of gas in the form of LNG a less competitive option for now. Without a pricing compromise, South Africa’s gas remains untapped, leaving behind all the profit and opportunity it represents.

For South Africa to truly benefit from its gas resources, President Cyril Ramaphosa’s administration must move beyond the traditional focus on coal and mining

A GTL strategy offers a multifaceted solution, however. By revitalizing the PetroSA GTL facility in Mossel Bay and converting natural gas into high-value liquid fuels like diesel and kerosene on site, South Africa could cut its reliance on fuel imports, strengthen its energy security, and extend employment opportunities to thousands of workers.

The precedent is clear: In Suriname, TotalEnergies’ GranMorgu deepwater project is set to generate 6,000 local jobs and inject at least USD1 billion into the economy. A similar initiative at the dormant Mossel Bay facility could transform South Africa’s southern coast, providing the government with fresh revenue and wider economic stability.

This is not mere optimism; this gameplan would be a practical means of leveraging existing infrastructure to drive regional development. But, once again, the economic viability of a GTL strategy as a solution for South African gas production hinges on securing a gas pricing agreement that satisfies the needs of both producers and consumers.

To resolve this pricing stalemate, South Africa should adopt a formula that ties the gas purchase price to the global LNG spot price, minus a percentage to reflect the absence of liquefaction and transportation costs. This approach would allow upstream companies to receive dollar-based payments, satisfying their financial requirements while aligning with the inherent shifts in the global market. Downstream, power producers and GTL operators would enjoy the affordability of discounted pricing, making projects economically feasible at both ends of the supply chain.

Furthermore, the government could incentivize GTL development through tax breaks, infrastructure subsidies, or public-private partnerships, so the economic benefits of these projects would be more likely to outweigh the initial costs. This pricing model would be a fair compromise that avoids the pitfalls of rand-based contracts and meets the needs of all stakeholders.

Additional Roadblocks

Overcoming environmental opposition is another critical step toward progress in gas development, and overlooking community engagement in this regard only empowers non-governmental organizations (NGOs) to challenge projects in court. Petroleum Agency SA’s community awareness campaigns, which educate locals about the benefits and risks of gas development, offer a model for improvement in this area. Expanding such efforts to include early and transparent engagement in the environmental impact assessment (EIA) process would help build trust and reduce grounds for legal action.

Town hall meetings and accessible EIA summaries would be a means of highlighting the economic benefits of a GTL strategy. By involving communities as stakeholders, the government and industry can work together to demonstrate that gas development can create shared prosperity.

The implementation of a GTL strategy is itself another way of addressing the legal pushback brought against South African exploration projects. Liquid fuels produced domestically reduce emissions by avoiding long-distance shipping, meaning that a GTL strategy is already in alignment with environmental goals from the start. Emphasizing the lower carbon footprint of a GTL operation would go a long way in gaining public approval of the project, but the government must still work to speed up the permitting process by establishing clear, time-bound guidelines for EIAs and consultations. Mechanisms should also be put in place to limit repetitive, post-approval legal challenges and allow projects to proceed without endless litigation.

A dedicated task force of industry, government, and local representatives would strengthen South Africa’s negotiating power and help hold projects accountable to environmental and social standards.

A Collaborative Path Forward 

Extracting and monetizing the gas resources held in Block 11B/12B and elsewhere could be a course-correcting game-changer for South Africa, but doing so to the greatest possible benefit requires bold, collaborative action. For South Africa to truly benefit from its gas resources, President Cyril Ramaphosa’s administration must move beyond the traditional focus on coal and mining, prioritize gas development, and embrace the potential of a GTL strategy.

By reviving the defunct Mossel Bay GTL facility and implementing a pricing model tied to LNG spot prices, the government can satisfy the needs of both upstream and downstream stakeholders while creating jobs for South Africans and reducing their dependency on imports. Simplifying the permit process and expanding community engagement would address environmental concerns so that projects can move forward without unnecessary delays or lawsuits.

With decisive leadership and a commitment to balance, South Africa can transform its gas potential into a catalyst for sustainable growth and secure a prosperous future, not just for the industry, but for the nation as a whole.

Distributed by APO Group on behalf of African Energy Chamber.

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High-Level Minister Roundup to Headline African Energy Week 2026

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African Energy Chamber

African Energy Week 2026 will convene ministers from Algeria, Ghana, Senegal, Zambia and Niger to spotlight oil, gas expansion, reforms and investment opportunities continentwide

CAPE TOWN, South Africa, March 13, 2026/APO Group/ –A high-level ministerial roundup will take center stage at this year’s African Energy Week (AEW) 2026 – taking place in Cape Town from 12–16 October –, convening some of the continent’s most influential energy leaders at a defining moment for Africa’s oil, gas and power sectors. As hydrocarbon expansion converges with accelerating energy transition strategies, the gathering is set to spotlight real-time project execution, regulatory reform and cross-border infrastructure that are actively reshaping Africa’s energy future.

 

Confirmed ministers to date include Algeria’s Minister of Energy and Renewable Energies Mourad Adjal, Ghana’s Minister for Energy and Green Transition Dr. John Abdulai Jinapor, Senegal’s Minister of Energy, Petroleum and Mines Birame Soulèye Diop, Zambia’s Minister of Energy Makozo Chikote and Niger’s Minster of Petroleum Hamadou Tinni.

 

Fresh from a March OPEC+ decision to lift output to 977,000 barrels of oil per day (bpd), Algeria enters AEW 2026 amid a $60 billion sector transformation. The country is also advancing a 500-well exploration drive and accelerating its 1.48 GW “Project of the Century” solar rollout. Gas exports to Europe remains central to the country, supported by hydrogen corridor planning and refinery expansion aimed at boosting capacity to 50 million tons by 2029.

 

Following license extension for Jubilee and TEN to 2040 and the late-2025 restart of the Tema Oil Refinery, Ghana is pushing a $3.5 billion upstream reinvestment plan while settling $500 million in gas arrears. A 1,200 MW state thermal plant and expanded gas processing at Atuabo anchor its gas-to-power shift, alongside a renewed upstream push in the Voltaian Basin.

The participation of these distinguished ministers underscores the scale of opportunity unfolding across Africa’s energy landscape and the urgency of aligning policy with capital

 

Senegal’s delegation comes on the back of strong production momentum, with the Sangomar oil field delivering 36.1 million barrels in 2025, outperforming forecasts, while the Greater Tortue Ahmeyim LNG development ramped up to 2.9 million tons per annum following first gas. Dakar is now prioritizing domestic gas through refinery upgrades at the SAR refinery and preparations for Sangomar Phase 2 to push output beyond 100,000 bpd.

 

Zambia is redefining its power mix after drought-induced hydro shortfalls. New solar capacity – including the 200 MW Chisamba expansion and 136 MW Itimpi Phase 2 – is part of a broader 2,500 MW diversification drive. Cabinet has approved major regional fuel pipelines, while the Energy Single Licensing System fast-tracks approvals. Lusaka targets 10 GW generation by 2030, with solar and wind rising to one-third of supply.

Niger’s presence reflects its emergence as a serious oil exporter, with the fully operational 1,950-km Niger-Benin pipeline now moving up to 90,000 bpd to international markets. Alongside uranium expansion and renewed cooperation with Algeria on upstream assets, Niamey is advancing digital oversight reforms and reinforcing energy sovereignty amid evolving geopolitical dynamics.

 

“The participation of these distinguished ministers underscores the scale of opportunity unfolding across Africa’s energy landscape and the urgency of aligning policy with capital,” says NJ Ayuk, Executive Chairman, African Energy Chamber. “Their leadership reflects a continent moving decisively from strategy to execution, creating a platform where investors can engage directly with the policymakers shaping Africa’s next wave of oil, gas and energy growth.”

 

At AEW 2026, this ministerial cohort will be well-positioned to offer investors direct insight into Africa’s most dynamic energy markets – where new barrels, new pipelines and new megawatts are reshaping regional growth trajectories in real time.

Distributed by APO Group on behalf of African Energy Chamber.

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North African Power Could Be Europe’s Next Energy Lever

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Energy Capital

As Europe seeks diversified and lower-carbon energy supplies, emerging electricity interconnections and gas infrastructure across North Africa – including Libya’s grid ambitions – are drawing investor attention ahead of the Invest in African Energy Forum in Paris

PARIS, France, March 19, 2026/APO Group/ –For decades, Europe’s energy relationship with North Africa has centered primarily on hydrocarbons – Algerian pipeline gas, Libyan oil and LNG shipments from the Mediterranean basin. At the same time, another energy link is gaining momentum: electricity. With growing renewable capacity, expanding transmission networks and new cross-Mediterranean interconnectors under development, North Africa’s power sector is emerging as a strategic complement to Europe’s energy system.

 

The trend is already visible in major infrastructure projects linking the two regions. The ELMED interconnector, a planned high-voltage subsea cable connecting Tunisia to Sicily, will allow bidirectional electricity flows between the African and European grids when it comes online later this decade. The project will transmit up to 600 MW of power through a 220-km cable, helping integrate North African electricity markets with Europe and enabling exports when surplus generation is available.

Libya’s Untapped Electricity Potential

Libya’s electricity sector remains largely domestically focused today, but the country sits at the center of a potential North African power corridor. Discussions between Libya, Algeria and Tunisia have already explored an “electric corridor” project linking their grids, a step that could eventually connect with broader Mediterranean power systems feeding into Europe.

Such initiatives would allow electricity generated in North Africa – whether from gas-fired plants, renewables or hybrid systems – to flow across borders and ultimately toward European markets. For Libya in particular, electricity exports could complement its longstanding role as a hydrocarbon supplier to Europe.

The country already holds substantial gas resources and power-generation capacity, much of which is fueled by domestic natural gas. With targeted investment in grid modernization, renewable integration and regional transmission infrastructure, Libya could evolve into a flexible power exporter within a wider Mediterranean electricity market.

Complementing LNG With Power

Electricity trade does not replace Africa’s LNG expansion – it complements it. Across the continent, gas developments in countries such as Mozambique, Senegal-Mauritania and Nigeria are strengthening Africa’s position in global LNG supply chains.

North Africa’s electricity ambitions add another layer to this energy relationship. Gas-fired generation can provide stable baseload power for export through cross-Mediterranean cables, while renewables help reduce emissions intensity and align with Europe’s decarbonization targets.

For European buyers facing volatile energy markets and geopolitical supply risks, this hybrid model – LNG imports paired with electricity interconnections – offers diversification across both fuels and delivery systems.

New Opportunities for Energy Investors

These developments are set to inform discussions at the upcoming Invest in African Energy Forum (IAE) in Paris, where government officials, utilities and infrastructure investors will assess emerging cross-border energy opportunities. Participation from the Renewable Energy Authority of Libya, including Chairman Dr. Abdulsalam Elansari, signals growing Libyan interest in positioning the country within this evolving regional power landscape.

For investors, the appeal lies not only in generation projects but also in the infrastructure connecting them: high-voltage transmission lines, subsea cables, storage systems and grid modernization.

Electricity trade between North Africa and Europe remains at an early stage, but the foundations are forming rapidly. As Europe accelerates its search for diversified and lower-carbon energy sources, North Africa’s combination of gas resources, solar potential and geographic proximity could transform the region into a strategic electricity partner.

If the current wave of interconnectors and regional grid initiatives succeeds, the Mediterranean may soon carry not only pipelines and LNG tankers – but high-voltage power as well. And for investors gathering in Paris, that emerging electricity corridor could become one of the most compelling energy stories linking Africa and Europe.

IAE 2026 (https://apo-opa.co/40Fn8sA) is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.Invest-Africa-Energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com

Distributed by APO Group on behalf of Energy Capital & Power.

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Amapá’s Strategic Push into Caribbean Energy: Brazil’s Northern Frontier in Spotlight at Caribbean Energy Week (CEW) 2026

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Caribbean

At Caribbean Energy Week in Paramaribo, the Amapá Economic Development Agency – led by President Wandenberg Pitaluga Filho – will outline how Brazil’s northern state is building ports, logistics and exploration capacity to connect with regional energy investment flows

PARAMARIBO, Suriname , Marc 19, 2026/APO Group/ –The Amapá Economic Development Agency will bring Brazil’s northern frontier into Caribbean energy conversations at Caribbean Energy Week (CEW) 2026, where Wandenberg Pitaluga Filho, the agency’s president, is set to address delegates on strategic investment, logistics and cross‑border energy opportunities.

 

Amapá’s interest in the energy sector has grown alongside federal exploration initiatives in Brazil’s Equatorial Margin – a deepwater frontier stretching along the northern Atlantic coast that includes the offshore area north of the state. In October 2025, Brazilian state‑owned oil firm Petrobras received an environmental operating license from the country’s environmental regulator IBAMA to drill an exploratory well in Block FZA‑M‑059, located roughly 175 km off the coast of Amapá. The operation, focused on gathering geological data, marks a significant milestone for northern Brazil’s entry into frontier exploration.

 

This milestone reflects broader efforts by Amapá to tie its economic development strategy to emerging energy opportunities. The state government and the Amapá Economic Development Agency have actively engaged with industry players and engineering firms on logistics and port infrastructure planning, including feasibility studies for offshore support facilities that could serve oil and gas operations. In late 2025, Amapá officials held technical meetings with DTA Engenharia Portuária to evaluate possible offshore port locations between Santana and Calçoene – a project aimed at creating dedicated logistics capacity for offshore energy activity.

 

For Caribbean energy stakeholders, Amapá’s combination of exploration progress and infrastructure planning shows how subnational actors can turn geographic proximity and federal initiatives into regional linkages. With offshore developments in Suriname and Guyana ramping up to the north, Amapá’s emerging ports, logistics hubs and service‑support capacity could become a key bridge for integrating Brazilian capabilities into the Caribbean energy value chain.

 

Brazil itself remains a heavyweight in the energy landscape. As Latin America’s largest oil producer with deep technical expertise and a robust oilfield services ecosystem, the country’s industrial and logistics networks could complement Caribbean basin operations, offering scale and synergies for complex offshore campaigns.

 

Through its participation at CEW 2026, the Amapá Economic Development Agency will present these opportunities to international investors and regional policymakers, with discussions expected to focus on strengthening cross‑border trade, expanding port infrastructure, and fostering collaboration between Brazilian companies and operators active in the Guyana–Suriname basin.

With offshore exploration ramping up along Brazil’s northern coast and growing investment in Guyana and Suriname, regional collaboration is increasingly central to the Caribbean energy landscape. Amapá’s participation at CEW positions the state as a practical partner in connecting production, services and investment across borders, integrating Brazil’s northern frontier into the emerging Caribbean energy corridor and demonstrating its role in building the infrastructure and partnerships that will shape the region’s next wave of development.

Join us in shaping the future of Caribbean energy. To participate in this landmark event, please contact sales@energycapitalpower.com.

Distributed by APO Group on behalf of Energy Capital & Power.

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