Natural Gas in Africa: Benefits to the Economy and Emission Reduction

Although Africa produces a relatively small amount of natural gas annually, the continent has found many uses for it through adaptations and technological advances in their daily lives. Large reserves have been found throughout the continent, especially in East Africa, where they have become a key component of the oil and gas industry. Liquified natural gas has become a focus worldwide for gas companies, and it is becoming competitive in markets due to the growing importance in the reserves to East Africa and other markets. Through utilizing their own natural gas production, innovators have found the means to develop technology which allows for utilizing natural gas in ways that benefit Africa both economically and socially.

Economically, East Africa has a number of investors who see the benefits of their natural gas. Between thehighest performing countries, including Kenya, Ethiopia, and Madagascar, the region is expected to export thirty-six million metric tons of liquefied natural gas by 2020. With the increasing demand of natural gas, they are also expected to see a rise of exportation to the amount of seven percent each year.  As East and South Africa grow within the global gas economy, their prospects grow as well. The income from exporting gas provides the regions with a steady and increasing source of income to the economy, allowing for the funding for their own gas-powered technological advancements.

Socially, developments in the technological field of natural gas and conversion are working towards converting methods of transportation, including school buses, to run off natural gas. Breaking the traditional thought that gas is only utilizable to residential and commercial properties as a means of heating and cooking, companies throughout North America have also demonstrated that natural gas can be a viable means of powering buses, reducing emissions, and aiding the economy in more general terms. Natural gas has become a hot commodity in Canada thanks to energy providers like Atco Gas who sell it for home use, and also to the Canadian Natural Gas Vehicle Alliance. It has also gained popularity in the U.S., including Tucson, Arizona, where Sun Tran released natural gas-powered buses are taking over cities. These buses have better fuel economy, produce lower emissions, and have better engine cooling systems than diesel-powered buses. Can you imagine the potential advantages for African citizens?

A program that grants money to schools to provide low emission transportation has been began with the 2014 school year and continues through 2015. The funding allows four public school districts enough money to purchase ten school buses that run off compressed natural gas, and also enough money to build fueling stations for them if they do not already have access in their district. All fueling stations are and will be available for public use. These advances in the school system are not only a technological advancement, but also will help make a dent in the efforts to reduce emissions.

South Africa in particular has the potential to receive large benefits from the conversion to liquefied natural gas. Some benefits of reducing emissions include tackling climate change, reducing the scarcity of food, and an improvement of the overall health of many people in developing countries. Other benefits come from including LNG into the energy equation, which would allow them to meet their carbon emission reduction requirements as well as utilizing its own natural gas availability to fuel demand, and to develop new technology that helps them to best work with the substance in a beneficial way. Despite the hefty cost of regasification in South Africa, the floating terminals that would be built would provide more flexibility for growth.

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