Nigeria-based Riverside LNG is engaging in discussions to supply gas to South Africa, marking the potential initiation of the first-ever gas deal between the two nations.
Bloomberg reported on Wednesday that the company, led by Chief Executive Officer David Ige, who spearheaded Nigeria’s Gas Master Plan, is eyeing an off-take agreement with South Africa.
Join our WhatsApp Channel“We’d probably very early in the year close out another segment of the market, an off-take for South Africa,” Ige stated, emphasizing the evolving gas market across a vast stretch encompassing southern Africa, western Africa, northwest Europe, the Caribbean, and South America.
However, details of the ongoing talks with South African counterparts remain confidential, as Ige cited confidentiality clauses. Additionally, Riverside LNG is exploring opportunities in Liberia and Cameroon.
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The move comes as South Africa grapples with chronic power outages caused by outdated and inadequately maintained power stations under Eskom Holdings SOC Ltd.
The country, aiming to diversify its power sources away from coal, eyes renewable energy to meet 60 gigawatts of its power needs by 2030.
While South Africa lacks the infrastructure to receive LNG presently, Ige assured that deliveries from the project wouldn’t commence until 2027, providing ample time to establish the necessary import terminal infrastructure.
The Southern African Development Community (SADC) has shown support for a $17 billion natural gas infrastructure plan, backing investments in pipelines and terminals to strengthen energy supplies across the region.
Ige expressed optimism about Nigeria potentially becoming a trading hub in this evolving gas-centric landscape, despite existing deficits in Nigeria’s gas transportation infrastructure.
Riverside LNG’s steps underscore Nigeria’s quest to harness its significant gas reserves, offering the potential for regional gas trade and bolstering energy supplies across Africa.
