The EU, responding to the Ukrainian military campaign, imposed sanctions on Russia and ceased gas imports from the country. Consequently, the EU turned to Africa as an alternative source for gas. However, it’s worth noting that Africa also relies on Russian gas.
Italian Prime Minister Giorgia Meloni recently revealed a partnership initiative designed to enhance collaboration with Africa. The primary goals of this project include addressing immigration concerns through economic empowerment and establishing an energy hub to serve the European Union (EU). However, the African Union (AU) has expressed dissatisfaction, stating that its member states were not consulted prior to the official announcement.
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Meloni unveiled the Mattei Plan, named after Enrico Mattei, the founder of Italy’s state-owned energy firm Eni, during a summit in Rome attended by various African leaders. The plan involves an initial investment of €5.5 billion ($5.95 billion) from Italy, supplementing existing initiatives focused on climate adaptation and clean-energy development in Africa. This financial commitment aims to enable Rome to purchase and distribute natural gas to other EU member states.
More than half of the budget originates from a climate fund established in 2022, aligning with the Paris Agreement objectives. These funds are specifically earmarked for targeted projects. The remainder will be distributed in the form of loans, guarantees, and grants.
The Italian premier highlighted diverse projects spanning from Morocco to Mozambique, emphasizing their potential to transform Africa into a significant energy exporter to the EU. This shift could also alleviate Africa’s dependence on Russian energy, particularly in light of sanctions imposed on Moscow due to the Ukraine conflict.
During the Italy-Africa summit, AU Chairman Moussa Faki Mahamat, in a speech expressed a preference for prior consultation by stating that African countries would have preferred to be informed before the launch of the plan.
“Africa is prepared to discuss the aspects and modalities of [the Mattei Plan] implementation. I must stress, here, the need to match actions with words. You will understand that we cannot be satisfied with promises that are often not kept,” Mahamat said.
The head of the 55-nation union called on Italy to engage with the continent on a “new model of partnership that charts the path towards a fairer world,” declaring that “Africa does not extend its hands to partners as a beggar.”
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Seeking alternatives to Russian gas, the EU has looked to Africa, with German Chancellor Olaf Scholz proposing a collaborative effort during his visit to Nigeria last year. However, Vsevolod Sviridov, an expert from Russia’s HSE University’s Center for African Studies, is skeptical about the EU’s ability to secure substantial gas from Africa. This skepticism arises from challenges faced by African gas exporters, including Nigeria, who must address domestic consumption demands.
According to the HSE Center for African Studies, gas exports from Africa to the EU totaled 72 billion cubic meters in 2022, reflecting a decrease of approximately 2 billion cubic meters from the previous year.
Gazprom has expressed its readiness to assist in the development of natural gas production and utilization in African countries. This statement was made during an international roundtable held in Johannesburg, where the focus was on the advantages of gas for both consumers and the economy. The event saw participation from representatives of business communities, experts, and reporters from nine African countries, namely Algeria, Angola, Ghana, Egypt, Kenya, Mozambique, Nigeria, Tanzania, and South Africa.
“Taking into account the South African government’s policy to decarbonize the economy, gas could become an effective means of meeting demand for energy, since renewable energy sources cannot ensure uninterrupted supplies. In this regard, I believe that Gazprom’s experience implementing liquefied natural gas and gas pipeline construction projects could be of interest to South African partners,” Russian Ambassador Ilya Rogachev was quoted as saying in the press release.
“Greater use of natural gas will help Africa solve a whole range of problems, from economic to social and environmental. We believe that Africa should fully discover the advantages of this fuel for itself,” the head of Gazprom’s foreign economic activities department, Dmitry Khandoga said.
“We see potential in cooperation with African countries and can offer our unique experience and technological know-how. Gazprom is open to discussing constructive and mutually beneficial proposals that would facilitate economic development and improve the lives of people in African countries,” Khandoga said.
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NJ Ayuk, the chairman of the African Energy Chamber, highlighted the significant energy challenges in Sub-Saharan Africa during a discussion. He pointed out that over 600 million people in the region lack electricity, and approximately 900 million, predominantly women, lack access to clean cooking technologies. Either they do not exist or they are insufficient, and solving this problem alone is sufficient reason to use the continent’s rich gas reserves, he said.
In Africa, which needs industrialization, affordable and abundant natural gas will help create many new jobs and opportunities for capacity building, economic diversification and growth, Ayuk said.
The roundtable participants delved into the role of natural gas in Africa’s sustainable development, recognizing the prevailing energy scarcity across the continent. Energy consumption in many African countries is considerably lower than the global average.
Experts predict that Africa will contribute over 60% to global population growth by 2050, accompanied by significant urbanization and a doubling of energy consumption. The demand for natural gas is anticipated to surge by 150%, and increasing production is deemed essential to meet this growing energy demand, as affirmed by the participants.
“However, at present most of the gas extracted here is exported. For example, one in three residents of Nigeria, Africa’s largest LNG exporter, does not have access to energy. Therefore, it is the accessibility of energy for industry and households that will be of foremost importance for Africa’s dynamic development,” Gazprom said.
During the discussions, participants highlighted the benefits of natural gas compared to other energy sources. Air pollution, a significant issue in Africa and a leading cause of premature deaths, was acknowledged. Natural gas emerged as a viable solution, addressing the main contributors to air pollution.
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The roundtable also recognized the potential of gas in addressing food-related challenges. Unlike other forms of electricity generation, gas doesn’t demand extensive land use and doesn’t encroach upon crop areas. Moreover, it serves as a valuable raw material for fertilizer production, contributing to significant yield increases.
Representatives from PJSC Gazprom and affiliated companies, including Gazprom Gasification, Gazprom Energoholding (GEH), and Gazprom Helium Service, shared insights into Gazprom’s operations.
Simultaneously, Gazprom disclosed details of its updated long-term development program for 2024-2033. Notably, the gas market share in the European region was removed from the list of strategic targets. Additionally, proposals for updating indicators related to fall-winter peak capacity and productivity in the unified gas supply system were announced, reflecting Gazprom’s ongoing commitment to strategic planning.
In essence, while the EU appears to be diversifying its gas sources, it is not completely bypassing the sanctions, as it continues to depend on Russian gas, indirectly sourced through Africa.
