Nigeria to Begin Gas Supply to South Africa from 2024
Riverside LNG, a Nigerian-based energy company, has announced that Nigeria, Africa's largest oil producer, has signed a landmark agreement with South Africa to begin supplying gas to the country from 2024. The deal, which was announced on Tuesday, is seen as a major boost for regional energy security and trade.
Nigeria has the largest gas reserves in Africa. More so, under the terms of the agreement, Nigeria will supply South Africa with up to 3 billion cubic feet of gas per day. However, the channel for supply hasn't been disclosed.
The Nigerian gas will help to meet South Africa's growing demand for energy, and will also help to reduce the country's reliance on coal. South Africa is currently the world's 12th largest emitter of greenhouse gases, and the government is committed to reducing its emissions by 80% by 2050.
The deal is also seen as a boost for Nigeria's economy. The country is struggling to diversify away from its dependence on oil, and the gas exports to South Africa are expected to generate billions of dollars in revenue.
The agreement was revealed by Riverside LNG, a Nigerian-based energy company, slighted that the deal will begin in the first quarter of 2024.
"This agreement is a win-win for both Nigeria and South Africa," Riverside LNG said. "It will create jobs, boost our economies, and help to meet our energy needs."
Furthermore, it's also major step forward in the development of a regional gas market in Africa. It will not only benefit Nigeria and South Africa, but it will also benefit the entire continent at large.
The deal is expected to come into effect in 2024.
Economic benefits for Nigeria
The deal is expected to generate billions of dollars in revenue for Nigeria. The Nigerian National Petroleum Corporation (NNPC) has said that the gas exports to South Africa could generate up to $13 billion per year.
The revenue from the gas exports will help to boost Nigeria's economy, which has been struggling in recent years due to the low oil price. The Nigerian government is planning to use the revenue to invest in infrastructure, education, and healthcare.
Environmental benefits for South Africa
The Nigerian gas will help to reduce South Africa's reliance on coal. South Africa is currently the world's 12th largest emitter of greenhouse gases, and the government is committed to reducing its emissions by 80% by 2050.
The Nigerian gas is cleaner than coal, and it will help to reduce South Africa's carbon footprint. The deal is also expected to improve air quality in South Africa.
Conclusion
The agreement between Nigeria and South Africa to supply gas is a major boost for regional energy security and trade. The deal is expected to benefit both countries economically and environmentally.
