AOW is aimed at uniting industry leaders to develop policy, share discoveries, secure investment and shape Africa’s energy future. (Image source: AOW)

At AOW: Investing in African Energy held in Cape Town form 7-10 October, a dedicated panel discussion considered how the continent can secure its future in a changing landscape

Specifically, the session was dedicated to the role of gas, with the pipeline of associated projects in the continent never being stronger. However, if Africa is to be competitive in a dynamic international gas market, it must ensure that it offers value. This means shaping an offer that meets the financial and environmental sustainability of stakeholders; gas investment propositions must be relevant and future-proof or global capital will not be forthcoming.

“Natural gas is at the centre of what we are doing in Africa,” commented Mario Bello, head of sub-Saharan Africa region at Eni. “It’s the cleanest fossil fuel, producing fewer emissions than coal, so it plays an important role as we transition to renewables… Floating LNG is the key to unlocking the region’s gas potential, making it easier and faster to develop offshore resources.”

A stable investment environment

Meanwhile, Paul Eardley-Taylor, head of oil & gas, southern Africa at Standard Bank, considered the financing challenge that remains a significant hurdle for projects. He emphasised the need for bankable projects that address investor concerns, particularly around sovereign risk. He also drew attention to the transformative potential of large-scale LNG projects and smaller, domestically-focused gas ventures, labelling the impact they could have in African markets “incalculable”.

Stressing the importance of a stable investment climate to attract international capital, Equinor’s senior vice president for Africa, Nina Birgitte Koch, said, “CO2 is the key criteria. It’s not just a ‘nice to have’ any more. I don’t think it’s possible to get capital to a big LNG project unless it’s highly competitive when it comes to CO2."

Tshepo Mokoka, Group COO of South Africa’s Central Energy Fund (CEF), raised the call for government intervention to address market failures and unlock investment. He outlined CEF's role in enabling critical gas infrastructure projects, such as the Romp pipeline and LNG import terminals. “We need to solve the market failure,” Mokoka surmised, highlighting the need for government-backed gas offtake agreements and risk-sharing mechanisms to attract private capital.

ExxonMobil’s executive director global, LNG marketing, Deri Irawan, emphasised the importance of a holistic approach to project development, considering not just the technical and economic aspects but also the social and political landscape. He commented on the need for strong partnerships and stakeholder engagement to ensure long-term project success. “It is insufficient to just bring a commodity to the doorstep. You also need to unlock that value chain.”

Gianluca Ciricugno, Africa director, enterprise customer solution at Baker Hughes, took the opportunity to stress the need for a long-term vision and collaboration between governments, investors, and technology providers. He urged, “It requires a broader vision, probably government and all the people around the table, with a long-term approach… and not just four-year terms.”

1,900+ leading manufacturers, suppliers and service providers will be in attendance in Las Vegas. (Image source: MINExpo International)

MINExpo International will run from 24-26 September in Las Vegas to connect the mining community and showcase the full range of innovations that are transforming the way work gets done

As one of the industry’s largest global mining events, visitors will be offered the chance to discover the latest transformative equipment and technology that is entering the market to help maximise productivity and safety on site. According to organisers, every element of the sector from exploration to reclamation will be represented and explored, with thousands of tons of equipment on the show floor.

The cutting-edge technology on display will provide a glimpse of what the future of the industry will look like in the years ahead, a vision that will become clearer with the supporting agenda of technical sessions led by leading experts in the field.

More than 44,000 mining professionals from around the world are expected to attend the show in Las Vegas and enjoy the 65,000+ sq m exhibition floor of technical innovations. Click here to learn more about the show in Las Vegas.

Tim Watts, Assistant Minister for Foreign Affairs in the Australian Government. (Image source: Department of Foreign Affairs and Trade)

Speaking at the Africa Down Under Conference 2024, Tim Watts, the Assistant Minister for Foreign Affairs in the Australian Government, highlighted the importance of Africa to Australian interests and committed to support partnerships between the two

“Since assuming this role I have paid special attention to highlighting the importance of Africa to Australian interests,” Watts remarked. “I have worked hard to advance Australia-Africa relations. This is because Africa is important; to the world, to Australia and to our shared futures.”

Emphasising this point, Watts drew attention to African Union entry to the G20 last year, a move that added 1.4bn people and almost US$3 trillion in GDP. These figures prove that “there is no global economy without Africa,” Watts continued. “Africa will have the world’s largest potential workforce by 2030. Africa’s middle class is projected to grow to over one billion people by 2060. Before the end of this century, the biggest cities in the world will be African cities. Those are simply staggering projections, which can’t be ignored. The message is crystal clear: Africa is not arriving, Africa is here.”

A focus on mining

While the country’s foreign policy has traditionally been focused on the Indo-Pacific (given its proximity), Watts maintained that Australia has global interests and is pursuing partnerships in Africa.

“I am pleased to see that, in the broad, Australia-Africa ties are expanding to meet the future’s global challenges… Australia can play a constructive role in Africa's rise, because Australia and Africa share many commodities. We're both blessed with a natural endowment of critical minerals. Rare earths elements, lithium, cobalt, nickel, etc… Whether it is solar, wind, or geothermal technology, the raw material needed to help power the future will first need to be mined out of the earth, whether that's here in Australia or across the Indian Ocean in Africa. Australian investments in Africa represent a long-term commitment to communities and to the prosperity of those communities.”

According to the Assistant Minister, investment by Australian companies has now reached US$60bn, capital that is providing jobs, training, expertise and opportunities and that can also come with new infrastructure while delivering significant benefits to local communities.

“Australians are proud of Australian mining, Australian innovation, Australian ingenuity. Companies are also increasingly looking to process minerals in Australia, supported by the Government's Future Made in Australia incentives. And I am proud that a range of Australian companies also support value addition in Africa… By adding value to raw minerals, we can create more jobs and support new market opportunities in the process. Australians want to know that our investments in Africa leave a lasting, positive legacy. And that desire applies to all Australian companies investing in Africa – not only to the resources sector.

“I am confident that Australian companies can continue to work together with their partners in Africa to deliver economic growth and prosperity in socially accountable and environmentally responsible ways. And the Australian Government will continue to support these partnerships.”

Listing this support, Watts referenced the Mining Governance Short Course for 25 African officials that ran in December 2023 and noted that a similar Short Course will be held in the coming year. Moreover, Australia’s High Commission in Accra will convene the next West Africa Mining Security Conference in October. This commitment is not “an abstraction” for Australians, the Assistant Minister remarked, but it is aiding a future in which they have a “personal stake”, not least because almost half a million Australians declared themselves to be of African heritage in the last Census.

“The continent is going to be an enormous global player in our lifetimes,” Watts concluded. “Because of its people. Because of its economies. Because of its role in the international system. There simply isn't a future where the countries of Africa are not important to Australia. You all know that. But I want to make it clear that I know that and the Australian Government knows it too.

Ugandan Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu. (Image source: Ugandan Ministry of Energy and Mineral Development)

At the forthcoming AOW Investing in African Energy event, running from 7-11 October in Cape Town, South Africa, Ugandan Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu will explain how the East African nation has become one of the most promising new energy frontiers

The conference at the CTICC 2 is now in its 30th year and will bring together industry leaders to develop policy, share discoveries, secure investment and share Africa’s energy future. As such, the Ugandan Minister has been invited as a keynote speaker at the event and will deliver her presentation on the upstream oil and gas opportunities that the East African nation offers for global investors.

“Our country’s upstream development is well advanced,” said Nankabirwa. “Uganda is now able to offer investors the predictability they need above ground. I look forward to unpacking the wealth of energy opportunities at AOW, and discussing them with potential partners.”

The country offers development potential through an estimated 6.5bn barrels of oil in place and 1.4bn barrels deemed to be technically recoverable. The crown jewel of Uganda’s oil industry is the Kingfisher field, part of a US$10bn project to develop oil reserves under Lake Albert in the west of the country. Kingfisher, and the neighbouring Tilenga field, are part of a project that also involves constructing a pipeline to transport crude oil to international markets via Tanzania’s Tanga Indian Ocean port.

Besides achieving several milestones on the Kingfisher and Tilenga projects, Uganda has also made rapid regulatory progress, implementing robust new policies and frameworks to ensure a favourable investment climate for international energy companies looking to enter the country.

The address promises to be one of the highlights of the four-day event, with Uganda set to start pumping its first oil next year.