Arab Today, arab today east africa to join world gas giants
Last Updated : GMT 19:49:39
Arab Today, arab today
Arab Today, arab today

East Africa to join world gas giants

Arab Today, arab today

Arab Today, arab today East Africa to join world gas giants

Cairo - Arabstoday

To East Africa\'s assets of spectacular wildlife, abundant land and shimmering beaches you can now add gas - so much gas it could transform global energy flows along with some of the world\'s poorest countries. Finds announced just last week off Tanzania and Mozambique are estimated to hold enough gas to supply France, Germany, Britain and Italy for at least a year - possibly much more. These and other discoveries in eastern Africa in the past year have sent shares in small explorers soaring, prompted takeover battles and rattled gas producers in other regions. They are already starting debate about how the resource wealth can bring better living standards rather than exacerbating corruption and distoring eastern Africa\'s relatively diverse economies just as they are taking off. East Africa has been emerging as an oil-producing region in recent years, although discoveries in Uganda and most recently Kenya have so far been smaller than in West Africa\'s giants. The excitement over oil has been overtaken by the largely offshore gas discoveries streching along eastern Africa\'s Indian Ocean coast from Kenya to Mozambique. \"It\'s a thrill a minute. The news is coming hard and fast,\" said Nick Cooper, CEO of explorer Ophir Energy, whose share price has more than doubled in four months. Ophir\'s partner, British gas producer BG Group, announced a major discovery off Tanzania this week. U.S. explorer Anadarko Petroleum and Italian oil group Eni announced even bigger finds off Mozambique. Anadarko estimates its reserves off northern Mozambique at 50 trillion cubic feet (1.4 trillion cubic metres) - almost as much as Libya\'s proven gas reserves. It is planning production from 2018. Eni says its neighbouring exploration block may have 52 trillion cubic feet of gas. Across the border, BG, Ophir, Exxon Mobil and Statoil say they may have 20 trillion cubic feet. The 253 trillion cubic feet that the U.S. Geological Survey now estimates may lie off Kenya, Tanzania and Mozambique compares to 186 trillion cubic feet for Nigeria, Africa\'s biggest energy producer. TROPICAL FREEZERS Demand is low from eastern Africa\'s small, if fast-growing, economies so the vast majority of the gas would be available for freezing into liquefied natural gas (LNG) to supply an expanding global market for a fuel that burns more cleanly than coal. \"We can help vault Mozambique into being one of the world\'s three largest LNG exporters,\" Anadarko Chief Executive Jim Hackett told an Eni company magazine. According to Reuters calculations, Mozambique could be vying with Algeria as the world\'s sixth largest exporter of gas by any means by the middle of next decade. \"There could be 12 trains and still gas left over for GTL,\" Philip Wolfe, head of oil and gas at investment bank UBS, said. GTL, or gas-to-liquids, technology converts gas to motor fuels. Twelve trains - the term for the facilities that turn natural gas into freezing liquid - could pump 60 million tonnes a year. Japan, the world\'s biggest importer of the fuel, used about 78 million tonnes last year. In eastern Africa\'s favour are the lower costs of building the multi-billion dollar plants needed than in countries such as Australia. Eastern Africa is seen as politically stable compared to much of the Middle East and many other parts of Africa - although the Somali pirates haunting the Indian Ocean could be a worry for large shipments of explosive fuel. The small explorers are immediate beneficiaries of the boom. Cove Energy, a shareholder in Anadarko\'s block, has accepted a $2 billion bid from Royal Dutch Shell. Its share price has more than tripled in eight months. Ophir Energy bought Dominion Petroleum this year and is the subject of frequent takeover rumours - with Indian, Thai and Chinese state oil firms all linked to bids for regional players. At today\'s prices, the 30-40 million tonnes a year of LNG which Mozambique may produce would mean revenues of around $30 billion dollars - more than three times the country\'s current gross domestic product. While Mozambique is already one of the fastest growing countries in one of the world\'s fastest growing regions, average income is still little over $400 a year. Some shiny buildings stand out in the shabby, bustling port capital Maputo, where Anadarko is building a new regional headquarters, and high-end tourist resorts dot the coast. But much of Mozambique is a sprawl of villages connected by rough tracks. Cash is already flowing in. Eni said it expects to spend 3.1 billion euros in Mozambique between 2012 and 2015. Anadarko and its partners will likely spend more. WHO WINS? The question is how much this will really benefit the region. Current contracts do not have the kind of clauses demanding the use of local content set by countries such as Brazil, meaning domestic firms could be relegated to bit players. Quick construction means bringing workers and equipment from abroad. Longer term benefits may be just as uncertain. \"Africans need to have this discussion early on as to how to develop the resources for our own benefit,\" Brian Dames, the head of South African state power company Eskom, told Reuters. \"Some of these must be exported but it should not be a recolonization of Africa,\" said Dames, who hopes Africa\'s biggest economy might ease some of its power shortages with links to generating stations using the newfound gas. Eastern African governments can expect a big lift to revenues. If regional states got even half the share of Qatar - seen as particularly savvy in managing its gas income - they could together expect $10 billion a year in tax. That compares to annual budgets of around $13 billion in Kenya, $8 billion in Tanzania and just $4 billion in Mozambique. \"The problem is that once a government relies on oil and gas revenues there is no incentive to develop other areas of the economy,\" said Markus Weimer, Africa Programme Research Fellow at Chatham House in London. That is the lesson from countries on the western side of the continent such as Nigeria and Angola, where strong governance does not exist and finding a way to grab a share of oil and gas money has become the main game in town. Resource money can entrench elites and worsen corruption. That is already a problem in eastern African countries, whose strength has often been their diversity, with tourism, mining and agricultural commodities all among sources of income. The term \"Dutch Disease\" was coined to describe the damaging economic impact of resource wealth following a natural gas boom in the Netherlands. Eastern Africa\'s countries are far less prepared for the change gas promises to bring. from ahram online

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today east africa to join world gas giants Arab Today, arab today east africa to join world gas giants

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today east africa to join world gas giants Arab Today, arab today east africa to join world gas giants

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today Saudi clerics use Twitter, textbooks

GMT 10:13 2017 Tuesday ,26 September

Saudi clerics use Twitter, textbooks
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today China refuses visa to elderly India runner

GMT 15:01 2017 Tuesday ,26 September

China refuses visa to elderly India runner
Arab Today, arab today UAE to open its first nuclear reactor in 2018

GMT 19:11 2017 Tuesday ,26 September

UAE to open its first nuclear reactor in 2018
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Mai Kassab happy for participating in new film

GMT 09:33 2017 Friday ,22 September

Mai Kassab happy for participating in new film
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 16:08 2017 Monday ,25 September

'World's heaviest woman' dies

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday