Africa Energy sees first output from South Africa's largest gas field by 2033
CAPE TOWN, June 10 (Reuters) - Canada-listed Africa Energy Corp (AFE.V), opens new tab is aiming to start production from South Africa's largest gas discovery by 2033, its CEO said on Tuesday, as it forges ahead with a project former operator TotalEnergies walked away from.
The company is awaiting regulatory approval for a reworked environmental authorisation to survey Block 11B/12B off South Africa's southern coast.
Using domestic gas is a key part of South Africa's strategy to diversify away from coal-fired power generation, with a flurry of new projects being pursued including the country's first liquefied natural gas import terminal along the east coast.
"Our 11B/12B indigenous gas should be very competitive versus imported LNG," Robert Nicolella said from the Africa Energy offices in Cape Town.
Nicolella said the company was studying various ways to market the gas, although its preference is to supply a gas-to-power plant. South Africa is targeting 6,000 megawatts of new gas power projects.
The CEO said Africa Energy is currently in talks with former national oil company PetroSA to use some of its infrastructure to land gas from the Brulpadda and Luiperd fields at Mossel Bay.
TotalEnergies first mooted using PetroSA's infrastructure, which includes the FA offshore platform in Block 9, to help accelerate production.
The idea was to connect Block 11B/12B to existing subsea pipelines that run to the FA platform and from there onwards to Mossel Bay.
"It could be a commercial alternative. It's an option, without a doubt," Nicolella said of using PetroSA infrastructure.
Africa Energy's majority-owned local subsidiary Main Street 1549 was left as operator of Block 11B/12B after TotalEnergies (TTEF.PA), opens new tab and joint venture partners QatarEnergy [RIC:RIC:QATPE.UL] and Canadian Natural Resources (CNQ.TO), opens new tab decided to leave the project last year.
Announcing its withdrawal last July, TotalEnergies said it appeared to be "too challenging to economically develop" and monetize the gas discoveries for the domestic market, without elaborating.
Main Street will hold a 75% participating interest in the block and Arostyle Investments the remainder, according to Africa Energy Corp's website.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
2 days ago
- Reuters
World Bank Group considers $500 million boost for South Africa's transmission expansion
CAPE TOWN, June 20 (Reuters) - The World Bank Group is considering financing $500 million of South Africa's participation in a new credit guarantee facility meant to unlock private financing for a massive transmission grid expansion plan, a senior bank official told Reuters. South Africa is courting private investment for an ambitious plan to add 14,500 km of new lines and enhanced transformer capacity over the next decade, at an estimated total cost of $25 billion, as it looks to emerge from a decade of crippling power cuts that have battered the economy. The proposed credit guarantee vehicle aims to help overcome transmission infrastructure bottlenecks that have held back some 20 gigawatts of renewable energy from connecting to the national electricity network, according to Standard Bank. Many of the renewable projects are situated in the sun-baked Northern Cape or windswept Western and Eastern Cape regions, far from existing transmission corridors linking most of South Africa to the coal-powered generation plants in the north. Operating as a stand-alone entity, the credit guarantee vehicle would issue guarantees instead of South Africa's treasury and would cover payment defaults, for instance, should something go awry during the roll-out. "We could cover or be committed to finance half a billion U.S. dollars of the government of South Africa's first loss or junior capital participation," Yadviga Semikolenova, a senior World Bank manager, said late on Thursday. South Africa has sought not to put further pressure on its strained finances by offering additional sovereign guarantees, as it faces lacklustre growth, high debt-servicing costs and the failure to agree a VAT hike within the government coalition this year. The treasury has committed to providing junior or first loss capital of 20%, which will be an initial $100 million before moving up to $500 million. The credit guarantee vehicle aims to eventually grow to $2.5 billion, an April 4 treasury document shows. The document, seen by Reuters, details a package under discussion with the World Bank Group that includes a loan from the International Bank for Reconstruction and Development to finance the treasury's junior capital and a potential $100 million direct injection from the International Finance Corporation. The bank's Multilateral Investment Guarantee Agency is also considering reinsurance and political risk cover. Approval from the World Bank Group board was expected later this year, treasury officials said. The treasury said in April it had sought backing for the facility from several development financiers, including the Development Bank of Southern Africa, African Development Bank, Germany's KfW and British International Investment. The DBSA said it was considering participating while BII said it could not comment on any transaction that it has not made a commitment to or announced.
Reuters
2 days ago
- Reuters
UK's Unite says TotalEnergies offshore workers win boost to pay
June 20 (Reuters) - UK's Unite union on Friday said that offshore workers employed by TotalEnergies ( opens new tab had overwhelmingly backed a new pay deal negotiated by Unite. "Around 50 Unite members based on the Elgin Franklin and North Alwyn platforms agreed to an enhanced offer which amounts to a 2.25 per cent increase in basic pay alongside a five per cent increase in the offshore allowance," the union added.
Reuters
2 days ago
- Reuters
South African rand flat as uncertainty over Middle East conflict hangs over markets
JOHANNESBURG, June 20 (Reuters) - The South African rand was trading almost flat early on Friday, as investors worried about conflict in the Middle East, with Israel and Iran's air war entering a second week and a decision on potential U.S. involvement. At 0649 GMT the rand traded at 18.0250 against the dollar , little changed from Thursday's close. The U.S. dollar also traded flat against a basket of currencies with investors in limbo after the White House said on Thursday that Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war. No major domestic data releases are due on Friday but domestically, investors will look to producer inflation (ZAPPIY=ECI), opens new tab and leading indicator (ZALEAD=ECI), opens new tab data set to be released next week, to gauge the health of Africa's most industrialised economy. South Africa's benchmark 2035 government bond was marginally stronger in early deals, as the yield fell 2 basis points to 10.12%.
