Equatorial Guinea is in preparedness to amass a Regional Natural Gas Producer and Exporter retaining a Cargo of 2,000 Methanol to Gabon by the Jipro Isis Liquified Natural Gas carrier
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The cargo captions a crucial stride in the motion to establish an achievable regional natural gas trade network, wherein, resources could be effectively monetized – through the modification into LNG, power and petrochemicals – and utilized to drive regional economic growth and industrialization. Facilitated by the African Continental Free Trade Agreement (AfCFTA), carried out in January 2021, the methanol delivery is anticipated to stimulate a substantial improvement in regional petrochemical and LNG trade. Therefore, as Africa’s deluxe energy event, African Energy Week (AEW) 2021 in Cape Town will not barely facilitate the importance of regional trade and cooperation in propelling energy sector growth, but will both underscore and showcase post-AfCFTA chances.
The AfCFTA was ascertained to position Africa as the largest free trade area in the world, facilitating tariff reductions and market liberalization while considerably lessening obstacles to trade. Before its enactment, the agreement has increased output in the services, manufacturing and natural resources sectors, enabling resource-rich nations to strengthen production and monetize resources, and energy impaired nations to invest on new trade opportunities. Accordingly, the AfCFTA has opened up important investment reliefs and has, and proceeds to be a lead motorist of industrialization continent wide.
Vastly, the AfCFTA has established fundamental regional trade alternatives considering natural gas. By establishing new and exceptional trade opportunities, the agreement is improving gas utilization and monetization, extremely respecting gas-rich nations such as Equatorial Guinea. With an estimated 1.5 trillion cubic feet of natural gas reserves, Equatorial Guinea has been timely to formulate paths to effectively monetize its resources. The most outstanding developments in the country have been the Equatorial Guinea Liquified Natural Gas (LNG) project at Bioko Island at Punta Europa; the Alba Liquified Petroleum Gas plant; West Africa’s first-ever LNG storage and regasification plant. Using natural gas derived from the Alba and Alen fields, and driving exploration to increase new commercial deposit supplies, the Punta Europa facility has been established as a gas-processing center for the Gulf of Guinea. Leveraging the benefits brought about by AfCFTA, Equatorial Guinea has made the first step in achieving its
regional gas hub goals, delivering 2,000MT of methanol to neighboring Gabon.
H.E. Gabriel Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons stated in a press release on the 26th of August that “with the delivery of Methanol to our sister the Gabonese Republic, we demonstrate once again the unique positioning of Equatorial Guinea for the monetization of gas in the Gulf of Guinea. It is also a pride that
the resources monetized in our country serve as an input for the economic growth not only of Equatorial Guinea, but of the CEMAC area.”
Consequently, African countries have a lot to gain from the AfCFTA. While nations are earning motions to improve exports to international markets, the agreement will drive up regional exports, enabling demand to be fulfilled and an immediate improvement in industrialization. Natural gas can be utilized to supply significant products to emerging industrial zones across the continent, and AEW 2021 schedules to relate these chances to both regional stakeholders and international investors. Positioning a priority on post AfCFTA alternatives, and giving a standard platform whereby regional contracts can be made, and partnerships establishes that will strengthen Africa’s trade network, AEW 2021 is devoted to navigating Africa’s prospect.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent