Growing West Africa gas sector on the transparency mantra
Gas resources no doubt remain a source of energy for the governments in some West Africa countries. As a source of energy in the region, gas resources are critical for growth, development and good governance.
As important as this sector is, it also poses major management challenges for governments in the region. The issues go beyond technical management of gas resources and collection of revenues.
Report indicate that resource control, governance, transparency in the utilisation of resource wealth for development, preserving and optimising the resource base, environmental protection, and securing equitable and intergenerational long- term benefits are among the many critical ingredients that should be embedded in any coherent strategy aimed at harnessing gas resource wealth.
In other words, achieving sustained growth from gas resources entails managing and enhancing the status of a complex portfolio of natural and human capacity.
Industry close watchers observe that sustainable management of gas also faces the challenge that large natural resource revenues tend to replace more stable and sustainable revenue streams, exacerbating existing problems related to development, transparency, and accountability.
Despite the challenges and issues involved, they said that gas resource boom can, under the right circumstances, be an important catalyst for growth and development.
“This can be achieved with the right institutions and policies. Several countries in West Africa have demonstrated this and there is some reason for cautious optimism that more countries have learned hard lessons from past resource booms, and, in future, will pursue strategies and policies that will allow them to fully reap the benefits of their natural resource.”
West Africa is well endowed with minerals, including fossil fuels and gas resources. However, knowledge about the quantities of these resources is limited and a comprehensive, country-based assessment still remains a challenge.
New discoveries of gas resources on the West Africa region continue to emerge and present unique economic opportunities. However, the exploration and exploitation of these resources are yet to benefit the populations. Nigeria, for instance, has the largest gas reserves in Africa, yet, its human and physical capital development is assessed to be low as a result of the non utilisation of funds from gas export to development human and infrastructural capacity.
Experts observe that issues of concern include technical limitations, inefficient contract negotiations, inadequate auctioning of extraction rights, inefficient taxation, and, most importantly, poor public expenditure prioritisation and lack of transparency in the use of revenues.
With the ever-increasing discoveries of new gas in Ghana and prospected fields in countries like Sierra Leone, Mali, gas sector still offers a unique opportunity that can be harnessed. It is critical for the government in the region to learn from the failures of the past in designing strategies that fully maximise the benefits of the new gas discoveries.
Analysts insist that it is equally important to explore ways to enhance regional energy security. An assessment of the gas situation in the West Africa region is a significant step towards harnessing the gains from gas resources to achieve the desire development.
According to energy sources, there is a projected increase in natural gas consumption to 163 trillion cubic feet in 2030, adding that Natural gas remains key fuel for industrial sectors.
Natural gas is an attractive choice for new generating plants because of its relative fuel efficiency. As more governments begin implementing national or regional plans to reduce carbon dioxide emissions, they may encourage the use of natural gas.
KELECHI EWUZIE