Maximising Africa’s natural resources

Africa's gas sector has become a focal point of discussion in recent times, especially given the global geopolitical landscape and the increasing demand for alternative energy sources. With the current Russia-Ukraine war causing disruptions in the gas market, European countries have been seeking new deals in Africa to reduce their dependence on Russian gas. While this presents a significant opportunity for African countries, there are important considerations to ensure that these deals benefit the local economy and its people. Gavin Thomson, Vice Chairman for Europe, the Middle East, and Africa at Wood McKenzie, shared his insights on the challenges and opportunities facing Africa's gas sector during an interview at Africa Oil Week. Thomson highlighted the volatility in the gas market, emphasizing the need for sustainable strategies to develop gas for the benefit of African users, industries, and economies. He emphasized the importance of infrastructure development, access to finance, and reducing carbon intensity in gas exploration and production to attract investment and drive economic growth. Thomson also discussed the role of gas as a transition fuel and the need to decarbonize the sector to ensure its longevity in the energy mix. Looking ahead, he predicted a softening of gas prices in the coming years, driven by increased supply from the US and Qatar. Despite the challenges and uncertainties in the market, Thomson remains optimistic about the potential for Africa to position itself as a key player in the global gas industry, leveraging its natural resources for sustainable development and economic growth.