African Gas An EL Dorado For Europe To Boycott Russian Gas?

The Ukraine crisis has had all its escalations and tensions, although experts would say more crisis is going to arise from Russia invasion of Ukraine, Europe having implored sanctions as economic weapon to subdue Putin war on its neighbour one of the things that they have to contain is huge reliance on Russian gas, which is going to hit them differently if only they find an El dorado on African gas, which is going to be pivotal moments in Africa to have its gas supplied around Europe. While they are evaluating their options to impose strict sanctions on Russia to suffer for the cause of invading Ukraine.

In other situation it is welcoming development for Africa, while they are hoping to increase their exports of gas and will hopefully sign treaty with European Union on the particular sector. Russia has insisted on paying in roubles, the Russian currency, for their gas which was the reason behind suspension of their deliveries to Poland and Bulgaria. Russia has the largest natural gas reserves in the world and it is largest exporter rating range close to 40% of Europe’s imports. There has already being agenda to totally move away from reliance on Russian gas, EU tends to cut supplies by two-thirds by the end of the year and become independent of all its fossil fuels by 2030.

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African top players on gas industry- Nigeria, Algeria, and Egypt combined together will be accounting to less than half of what Russia supplies to Europe. African gas is in better position to replace Russian gas and there are going to be loads of interest ranging from that industry, while Europe is seeking for a shit on energy Algeria posed to be a great benefactor having already established gas connectivity infrastructure with Europe. There is already a gas signed deal with Algeria and Italian government to increase gas imports by around 40%.

While African is seeking to boost investment in the potential attention to African gas, the greatest problem that will be facing the continent is political crisis and instability, due to dispute with Morocco, Algeria gas exports to Europe has fallen sharply leading to the closure of a vital pipeline to Spain, from 17 billion cubic feet a year to around 9 billion. According to BBC, Pier Paolo Raimondi, an energy researcher fellow at Rome’s Instituto Affari Internatzionali, echoes his voice on the gas deal between Italy and Algeria “the agreement will allow them to exploit the available pipeline transportation capacity and it could gradually provide increasing volumes of up to nine billion cubic metres per year in 2023 and 2024. We don’t know how fast Algeria can ramp up this production.”

Nigeria, West Africa’s big player on gas industry has been on the front foot with overwhelming requests for gas from European countries since the start of the Russia and Ukraine crisis. Liquified natural gas producer, Nigeria LNG, at present, key destination markets for Spain, Portugal and France, the company will be seeking expansion to contain the demands from European countries while honouring their existing contracts with their buyers. The Trans Sahara Pipeline project- a 4,400km natural gas that would run from Nigeria, to Niger through Algeria, with existing pipeline infrastructure linking West African countries to Europe. In 1970s, the project was halted but has faced with lack of funding, environmental concerns on issue of greener earth and security challenges. There is a plan already by the regional officials to rejuvenate it.

It is about plan that will be in place to push up African gas demands which will provide the local markets with sustainability and expound the scope in international market, to provide stability value for African currency. It is time for AU to come together and re-strategize with the shift on Russian gas, whether African gas will be the chief corner stone in a bid to properly land a big blow on Russian gas as continuous efforts to cripple them economically for unlawfully invading Ukraine by the West. There is counting losses on the ongoing war, which has seen shortage supplies of wheat, and millions of Ukrainians taken as refugees around Europe while the seem far from its end.