Revealing a new oil and gas market that both Russia and the EU are aiming for

EU looks for supplies in Africa

European Union (EU) will switch to importing gas from Africa to replace Russia, Bloomberg reported on May 3. The newspaper cited a draft EU document as saying that countries in Africa, such as Nigeria, Senegal and Angola, have huge untapped potential for liquefied natural gas (LNG).

The European Commission will announce plans for energy cooperation with West African nations and other suppliers later this month as part of an effort to cut energy dependence on Moscow amid Russia’s progress in energy production. conduct military operations in Ukraine.

The EU pledged to cut Russian gas imports by two-thirds next year and eliminate dependence on Russian oil and gas by 2030.

To that end, the EU document adds, Europe must re-establish relationships with traditional suppliers and access emerging ones, as the bloc needs to increase imports of LNG. by 50 billion cubic meters per year until 2030 and increase the amount of gas transported via pipelines from countries other than Russia.

To achieve its goal, the EU must fully implement the agreement with the US on the supply of liquefied natural gas, while expanding trade with suppliers such as Egypt, Israel, Azerbaijan and Australia.

The EU’s move to end Russian gas imports under sanctions related to Ukraine has prompted Europe to ramp up purchases amid rising global demand and high LNG prices. Russia is the main energy supplier to the EU, supplying about 40% of the union’s gas needs.

Italian Foreign Minister Luigi di Maio told CNBC in March that he has traveled to countries like Mozambique, the Republic of Congo and Angola in an effort to build new LNG supply partnerships. “Energy security is an important issue for countries that are global manufacturing powerhouses like Italy and many others, and we must be able to diversify our energy supply. We are diversifying away from dependence on Russia and continue the green transition with new and different energy sources,” said Foreign Minister Luigi di Maio.

Russia seeks investment direction in Africa

Meanwhile, in the opposite direction, Russia is also looking to invest in projects Oil and Gas in Africa. Reuters quoted Nigeria’s Minister in charge of petroleum resources Timipre Sylva as saying on May 2 that Russia has expressed interest in investing in the Nigeria-Morocco gas pipeline project.

Nigeria and Morocco first signed the agreement on the project in December 2016. Besides connecting the two countries, the 5,660km pipeline is also expected to connect several other African countries with Europe.

Mr. Timipre Sylva told reporters in Abuja: “The Russians met with me last week. They are very interested in investing in this project and there are a lot of other people who also want to invest in the project. This is the pipeline that will be. take our gas through many countries in Africa and all the way to the edge of the African continent, where we also have access to the European market.”

Mr. Sylva said the government of President Muhammadu Buhari hopes to at least kick off the project before leaving office in May 2023. He did not say how much it would cost.

Nigeria is rich in hydrocarbons but produces little electricity, making its industries uncompetitive.

Among Russia’s portfolio of interests in Africa, state-owned energy conglomerates such as Gazprom, Gazpromneft and Rosneft have built interests in the hydrocarbon industry in markets around the continent, from Algeria. in the north to Nigeria, Angola and Mozambique in the south of the Sahara.

According to South Africa’s Daily Maverick, Gazprombank, owned by the Russian energy group Gazprom, confirmed it was considering bidding for a potentially billion-dollar contract in South Africa. Amid the conflict in Ukraine and high gas prices, South Africa urgently wants to secure access to large amounts of natural gas.