"Angola faces hydrocarbon dilemma"

" \n Angola faces hydrocarbon dilemma \n \n\n \n Angola\u2019s president wants to attract more investment into hydrocarbons, which will continue to play a significant role in the oil-dependent state as it works towards its energy transition. \n \n\n \n With just 46% of its population having access to electricity and one-third of its gross domestic product generated by oil, Angola exemplifies the dilemma faced by many countries across sub-Saharan Africa in needing to improve living standards while meeting international climate obligations. \n \n\n \n Participating at the Financial Times \u2019s Africa Summit in October, president Jo\u00e3o Louren\u00e7o made clear that Angola\u2019s hydrocarbons sector will not disappear in the short term. \u201cWe are working to attract greater investment in oil production, [and] especially in the production of non-associated gas,\u201d he said. \u201cBut at the same time, [we are] working on the transition that will take some time to happen from polluting energies \u2026 to environmentally friendly energies. The two projects have to go in parallel.\u201d \n \n\n \n Angola\u2019s crude oil production has fallen since oil prices collapsed in 2015, and fDi Markets data shows that foreign investment in its fossil fuels sector has not recovered to pre-financial crisis levels. But the sector still attracts the lion\u2019s share of foreign investment. \n \n\n \n In November 2020, UK-based Gemcorp took a 90% stake in a $920m joint venture with state oil company Sonangol to build an oil refinery in the country\u2019s northern Cabinda region. In April 2021, Italian energy major Eni, alongside its joint venture partners, pledged to invest $7bn in exploration, refining and production \u2014 plus solar power \u2014 over the next four years. \n \n\n \n One investor in the country\u2019s energy sector told fDi that they see no slowdown in the government\u2019s desire for investment in the oil sector. \u201cAs much as the world wants this drive towards green energy, unfortunately Africa can\u2019t switch overnight, like you might see in Europe or elsewhere,\u201d they said. \n \n\n \n A just transition \n \n\n \n But going forward, gas will be a bigger focus than oil. Transport minister Ricardo Viegas D\u2019Abreu has justified the government\u2019s focus on ramping up investment in gas to increase electricity capacity from today\u2019s circa 5 gigawatts (GW) to 9.9GW by 2025. This plan involves lifting gas\u2019s share of the power mix from 11% to 19%. \n \n\n \n In 2019, the government instigated the New Gas Consortium, which sees Sonangol, Eni, Total, Chevron and BP working together on the country\u2019s first gas-field development. To date, Angola has generated gas as a byproduct of oil production, but the Consortium, whose initial investment is $2bn, has been mandated to explore and produce Angola\u2019s first non-associated gas. \n \n\n \n These strides to establish a gas industry come at a time when governments are under pressure to phase out fossil fuels. At the Africa Summit, Mr D\u2019Abreu said increasing gas\u2019s role is \u201csomething that we should be allowed to address given the need in terms of financial resources to boost economic growth\u201d and improve transport. \n \n\n \n \u201cWe believe most countries in the continent face the same challenge: an enormous potential of natural gas not being allowed to be deployed to contribute to their financial needs or this transition,\u201d he added. \n \n\n \n While Angola\u2019s gas reserves are undeveloped by global standards, the African Energy Chamber (AEC) says it is among the five countries that account for 90% of the continent\u2019s natural gas output. However, 90% of Africa\u2019s recent gas discoveries are in other countries, prompting the AEC to predict a \u201cnew age for gas supply diversification in Africa\u201d . \n \n\n \n Gas\u2019s potential in alleviating Africa\u2019s chronic power shortages and generating export revenues requires, according to Mr D\u2019Abreu, \u201cAfrican leaders [to take] leadership of that discussion.\u201d \n "

"Angola faces hydrocarbon dilemma"

Premier League: Man City in title groove as Arsenal face Spurs testAMP

GFA commissions first set of floodlights at Ghanaman Soccer Centre of ExcellenceAMP

Anglo American rejects “opportunistic” $39bn takeover bid from BHPAMP