Rone: Stronger investments required to boost Africa's gas initiatives

In a recent interview with CNBC Africa, Julius Rone, the Group Managing Director of UTM Floating LNG, emphasized the importance of stronger investments to boost gas initiatives in Africa and optimize global market opportunities. The interview took place at the commissioning of the Afreximbank African Trade Centre in Abuja, where Rone highlighted the significance of closing trade information and financing gaps and leveraging platforms such as the Africa Energy Bank to drive energy security in the region. One of the key points discussed during the interview was the abundance of mineral resources in Africa and the crucial need for their extraction and utilization to drive the continent's industrialization. Rone stressed the potential of LNG gas in this regard and underscored the role of financial institutions like Afreximbank and the upcoming Africa Energy Bank in supporting energy transactions across Africa. Moreover, Rone pointed out the growing demand for energy from Africa, especially in light of recent global developments such as the withdrawal of the United States from the COP Climate Change Paris Accord. He mentioned that Africa is well positioned to meet this energy demand, given its abundant resources, but highlighted the importance of making gas projects bankable to attract the necessary investments. Furthermore, Rone commended the Nigerian government's focus on gas and its efforts to develop the country's gas resources, including investments in various LNG projects and the establishment of a dedicated Minister of Gas. He expressed optimism about the future of the gas market in Africa, particularly in Nigeria, and emphasized the need for international best practices and government support to drive industrialization. When discussing the pricing and market outlook for LNG, Rone noted the 24-hour nature of LNG trading and highlighted recent price movements influenced by global factors like tariffs. Despite these fluctuations, Rone remained positive about the energy pricing trends over the past few years and projected a continued growth in demand for energy, which would positively impact pricing and market expansion for UTM LNG in the coming years. Overall, the interview with Julius Rone shed light on the critical role of investments, infrastructure development, and government support in boosting Africa's gas initiatives and achieving energy security. With a focus on LNG projects, international partnerships, and sustainable practices, Africa is poised to capitalize on its rich gas resources and emerge as a key player in the global energy market.