Sahara Group, a renowned global energy and infrastructure conglomerate, has strongly advocated the adoption of market-based regulatory frameworks in a bid to ignite a revolution in Africa’s gas sector. The company’s plea comes as it seeks to bolster sustainable gas development across the continent.
During the recently concluded African Energy Week (AEW) 2023 in Cape Town, South Africa, Sahara Group’s Managing Director, Emmanuel Magani, emphasised the pivotal role market-driven pricing can play in attracting investments, promoting production, and spurring consumption growth in the gas sector.
He also underlined the importance of involving investors in the formulation of gas policy frameworks to enhance capacity and competitiveness within the African gas industry.
At the heart of Sahara Group’s message is the belief that a market-oriented approach is crucial for achieving adequate returns for all key stakeholders. Magani pointed out that a robust market-based pricing system is necessary to provide the necessary infrastructure for the transformation and utilisation of gas resources in Africa. Additionally, gas holds great potential in helping Africa meet its commitments to reduce carbon emissions.
For example, Sahara Group referenced a report by McKinsey & Co, stating that Nigeria currently possesses 40 – 60 gigawatts of capacity in petrol and diesel generators. By transitioning this capacity to the electricity grid, the country could achieve an annual reduction of almost 33 metric tons of carbon dioxide emissions, equivalent to approximately 12% of Nigeria’s current greenhouse gas emissions. Similar reductions can be achieved by substituting traditional energy sources like firewood, charcoal, and kerosene with cleaner options like LPG (liquefied petroleum gas).
Sahara Group, a prominent player in Africa’s oil and gas sector, as well as in international operations in Asia, Europe, and the Middle East, is actively seeking investments and collaborations to position gas as a key resource in the journey toward achieving net-zero emissions. The company is steadfast in its commitment to supplying energy for various applications, including industrialization and domestic cooking. Through its LPG operations, Sahara Group is making significant contributions to efforts aimed at eliminating the use of firewood and charcoal by establishing the necessary infrastructure for LPG storage, distribution, and access throughout Africa.
In the power sector, Sahara Group plays a pivotal role by providing 20 to 25 percent of Nigeria’s daily electricity supply, translating to one out of every four light bulbs powered by the company. The group is continually expanding its footprint and working closely with other stakeholders to fulfil its vision of delivering energy responsibly and leaving no one behind.
Sahara Group’s call for a market-based approach to the gas sector could potentially unlock new opportunities and drive sustainable growth, aligning with Africa’s commitment to cleaner and more efficient energy solutions.