2 African Energy Challenges in the Transition Era …
47
comprising an installed capacity of about 2075 MW.
35 As a result, it
exports electricity to Botswana, South Africa, Zimbabwe and the SAPP.
This was made possible due to the favourable investment framework
from foreign direct investments in developing countries.
36
In terms of natural gas deposits, Mozambique in 2010, the US energy
company Anadarko found significant gas reserves of the coast of Mozambique’s Cabo Delgado province. The following year too, Italy’s ENI also
found a massive gas field in the area.
37 Ever since Mozambique has seen
an influx of foreign energy companies fishing for lucrative contracts.
As a result, Cabo Delgado is now base to Africa’s three largest liquid
natural gas (LNG) project. This huge natural gas reserves necessitated
the likes of Mozambique’s LNG (led by US-based Anadarko) in June
2019 to commit $20 billion on the development of integrated offshore
and onshore gas fields. In December 2019, Rovuma LNG (led by ExxonMobil and ENI) was anticipating to commit $30 billion to develop the
same.
38
Thus, there is a wide complement of both renewable and nonrenewable energy resources.
39 These resources are distributed across the
region, making it a fertile ground to engage in regional trade for the
desired energy transformation in the region. There are huge deposits of
gas, coal and uranium in the region’s energy resource base. Botswana,
Mozambique, South Africa and Zimbabwe host large deposits of coal,
while Mozambique, South Africa, Tanzania are developing natural gas
fields in their respective countries. Huge volumes of uranium deposits
can be found in Namibia and South Africa as mining is already
35 Ibid.
36 UNEP, AfDB, ‘Atlas of Africa Energy Resources’, United Nations Environment Programme
Report (Nairobi, 2017).
37 Sasha Planting, ‘Gas in Mozambique—A $128bn Opportunity’, Business Maverick, September
2019, https://www.dailymaverick.co.za/article, accessed February 3, 2020.
38 Ibid.
39 R Karhammar, ‘Regional Energy Cooperation in Africa and Possible Entry Points for the New
Regional Results Strategy’, Swedish International Development Cooperation Agency Report
(2016).
47
comprising an installed capacity of about 2075 MW.
35 As a result, it
exports electricity to Botswana, South Africa, Zimbabwe and the SAPP.
This was made possible due to the favourable investment framework
from foreign direct investments in developing countries.
36
In terms of natural gas deposits, Mozambique in 2010, the US energy
company Anadarko found significant gas reserves of the coast of Mozambique’s Cabo Delgado province. The following year too, Italy’s ENI also
found a massive gas field in the area.
37 Ever since Mozambique has seen
an influx of foreign energy companies fishing for lucrative contracts.
As a result, Cabo Delgado is now base to Africa’s three largest liquid
natural gas (LNG) project. This huge natural gas reserves necessitated
the likes of Mozambique’s LNG (led by US-based Anadarko) in June
2019 to commit $20 billion on the development of integrated offshore
and onshore gas fields. In December 2019, Rovuma LNG (led by ExxonMobil and ENI) was anticipating to commit $30 billion to develop the
same.
38
Thus, there is a wide complement of both renewable and nonrenewable energy resources.
39 These resources are distributed across the
region, making it a fertile ground to engage in regional trade for the
desired energy transformation in the region. There are huge deposits of
gas, coal and uranium in the region’s energy resource base. Botswana,
Mozambique, South Africa and Zimbabwe host large deposits of coal,
while Mozambique, South Africa, Tanzania are developing natural gas
fields in their respective countries. Huge volumes of uranium deposits
can be found in Namibia and South Africa as mining is already
35 Ibid.
36 UNEP, AfDB, ‘Atlas of Africa Energy Resources’, United Nations Environment Programme
Report (Nairobi, 2017).
37 Sasha Planting, ‘Gas in Mozambique—A $128bn Opportunity’, Business Maverick, September
2019, https://www.dailymaverick.co.za/article, accessed February 3, 2020.
38 Ibid.
39 R Karhammar, ‘Regional Energy Cooperation in Africa and Possible Entry Points for the New
Regional Results Strategy’, Swedish International Development Cooperation Agency Report
(2016).