In a bid to optimize the country’s gas potential and revitalize its hydrocarbons sector, the Congo has put together and launched, at the end of 2021, a plan to put its estimated 10 trillion cubic feet of natural gas reserves to good use. The new Gas Master Plan (GMP) is designed to promote gas utilization and attract foreign direct investment, while reducing its dependency on oil revenues and expanding the country’s power grid.
Developed by the Ministry of Hydrocarbons and Wood Mackenzie, guided by Société Nationale des Pétroles du Congo (SNPC), the GMP is a road map to the Congo’s natural gas future both for domestic consumption as well as exports.
For exports in particular, the government sees small-scale Floating Liquefied Natural Gas (FLNG) as optimal, specifying Eni’s Marine XII field as a prime target for this solution. FLNG however, particularly at a small scale, doesn’t come cheap, and changes to the country’s current fiscal terms will need to be updated for these projects to be viable.
Anticipating such challenges, the plan opens the door to renegotiating existing contracts and even suggests the establishment of a whole new Natural Gas Policy designed to facilitate the commercialization of stranded and flared natural gas, calling for operators like Eni and TotalEnergies to come to the table to discuss what terms will be optimal for the sector’s development.
On the domestic front, however, the Congo is much more advanced than most of its neighbors, having one of the very few large-scale gas-to-power projects in the region. The Central Électrique du Congo, fed by ENI’s Marine XII offshore block, currently produces nearly 70% of the country’s electricity, and stands as a grand example of what its power generation future can look like.
However, adjustments to pricing systems and transport infrastructure development will certainly be needed for that future to come through. Ensuring fairness and competitiveness in the domestic natural gas market still represents a major hurdle for both buyers and sellers, but the plan expects that a novel pricing aggregator system ensuring price stability could limit those challenges.
As natural gas takes its rightful place at the center of the Congo’s energy future, the GMP and other strategies will be under the spotlight at the first-ever Congo International Energy Summit (CIES), taking place in Brazzaville on the 15th – 17th of June 2022. The CIES will reunite regional and international government representatives and industry leaders to discuss the future role of natural gas as a regional and continental solution to address energy poverty, among many other issues.
To find out more information regarding speaker or sponsorship opportunities at the Congo International Energy Summit please visit Cie-summit.com?or email@example.com.Distributed by APO Group on behalf of Energy Capital&Power.
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.