AFRICAN GAS: BOON OR BANE?

For the better part of a decade now, African gas finds have been the staple of headline oil and gas stories. Home to some of the largest gas reserves in the world, with estimates suggesting that the continent holds over 620 trillion cubic feet of proven natural gas reserves, understandably makes it a hot topic in the world of oil and gas. The potential is real, proven by reading numerous adjective-rich articles and reports of how it can drive economic growth, provide clean energy, and diversify export revenue streams. Gas has been anointed as Africa’s savior, heralding a new era for the continent that is in desperate need of energy.

However, the question of whether the gas potential will be fully realized is a complex one. While there are many benefits to the development of the gas industry in Africa, there are also challenges and risks that need to be carefully managed.

According to a recent report by Global Energy Monitor, the US$245 billion planned expansion of gas infrastructure underway in Africa represents an enormous assetstranded risk especially as much of the gas is intended to correct Europe’s