Wale Tinubu sees bright prospects for African gas in Europe

Wale Tinubu, the Group Chief Executive Officer at Oando Plc, expressed optimism about the prospects of African gas in European markets. He conveyed this sentiment during a panel discussion at the recently concluded AfriCaribbean Trade and Investment Forum (ACTIF).

Tinubu highlighted the significant gas reserves discovered in Africa over the past decade, totaling approximately 100 trillion cubic feet (tcf). These gas reserves have been found in countries such as Nigeria, Angola, and Algeria. Tinubu emphasized the strategic advantage of African gas, given its favorable shipping routes and proximity to Europe. He remarked on the successful transportation of gas cargoes from the West Coast to West Africa and anticipated increased cross-trade between the continents. He pointed out that this trade expansion is bolstered by the growing refining capacity in Nigeria and Angola.

NJ Ayuk, the Chairman of the African Energy Chamber, also participated in the panel discussion. He noted that while Africa boasts potential and significant gas discoveries, it lacks the necessary funding to tap into the underexplored oil fields across the region. Ayuk stressed the importance of increasing production and urged the involvement of financial partners. He highlighted the need for collaboration, emphasizing that joint ventures and investments are essential to ramp up gas production, benefiting both African and Caribbean companies.

Rene Awambeng, the Global Head of Client Relations at AfreximBank, provided additional insights. He pointed out that five of the world’s top 30 oil-producing countries are located in Africa. The oil and gas sector contributes approximately 53% to the Gross Domestic Product (GDP) of African nations, with some countries like Equatorial Guinea, Chad, and Gabon relying significantly on this sector.

Awambeng also highlighted the substantial gas reserves in Africa, accounting for over 9% of the world’s gas reserves. These reserves are spread across more than 20 African countries, amounting to approximately 18 million standard cubic feet of gas.

Despite these abundant resources, the primary challenge for Africa lies in safely and efficiently extracting these reserves with the requisite financial and technical support. To address this challenge, a partnership has been forged between the African Export-Import Bank (AfreximBank) and the African Petroleum Producers Organization (APPO). This partnership aims to establish the African Energy Bank, dedicated to financing the continent’s oil and gas potential.

Furthermore, the scope of the energy bank extends to the Caribbean region, demonstrating a broader commitment to advancing energy resources and infrastructure in both Africa and the Caribbean.