Why West Africa must drive her untapped natural gas supplies potential

Natural gas is one of the most widely-used energy resources; it is however sad to note that West Africa with its huge natural resources in the last three decades had lagged behind in natural gas production.

However, the story is taking a look for the better with governments in West African countries increasing their efforts to secure stable gas supply to enhance power generation capacity coupled with renewed interest by investors across the spectrum who are now tapping into the regions’ abundant supply.

According to the International Energy Agency (IEA), natural gas will take the lead in meeting the world future energy needs, and demand will grow faster than oil and coal over the next five year.

The report expounded on the many positives of the future of natural gas. It was based on the insatiable appetite for natural gas, the growth in natural gas supply and increasing use of natural gas in transportation. There are some 500 global companies exploring natural gas deposits throughout West Africa.

The international energy agency projected that by 2022, gas demand will grow at 1.6 percent per year. By this, indication are that annual gas consumption may reach 4, 000 billion cubic metres (bcm) with an almost 90 percent of the anticipated growth in demand coming from developing economies.

Gas discoveries are stimulating sector growth and infrastructure development in the region as large percentage of gas production continues to come from Nigeria among other countries in the region.

Growth in the sector will be stimulated by low prices, abundant supply, as well as its role in producing a cleaner energy source.

Report indicates that the rise of West Africa within the natural gas market will be just as beneficial to the multinational corporations as it will to the small, local participants. The success of natural gas development is incumbent on the participation of governments, NGOs and the corporate sector. Strategic planning is an essential component in the process.

Industry experts opine that even though Nigeria is among the leading countries with huge natural gas reserves in Africa in general and West Africa in particular, obstacles such as regulatory measures, infrastructure development and malfeasance at the government level need to be overcome in order to develop her vast natural gas resources.

Analysts observe that gas exploration requires massive investment and a strategic commitment. So while the rewards look huge, the road to unlocking their full potential is still long and rocky.

They observe that the challenges associated with developing West Africa’s vast natural gas resources are real, and careful consideration is needed in terms of how best to achieve the objectives of socioeconomic and infrastructural development.

Industry close watchers are of the views that as West African countries move toward gas-based economies and deregulate the market, the result will be greater investment in all areas of the supply chain, from utilising flared gas to transportation of gas from offshore fields.

To them, West Africa with its vast quantities of natural gas is well harnessed have the potential to fundamentally transform the global landscape by uplifting communities, and even entire regions.

KELECHI EWUZIE