Challenge

A lack of cheap, reliable electricity is hindering economic progress in sub-Saharan Africa. More than 600 million people in the region lack access to power – but if the deficit can be closed it would boost economic growth across the region by between 2 and 4 per cent a year.

A consortium of leading sub-Saharan African energy agencies and producers commissioned Precision to help develop a framework aimed at driving the role of gas and LNG in the sub-Saharan power-generation market, as a means of closing this deficit.

The need to formulate a meaningful, effective strategy was (and remains) pressing, when one considers that the combined power generating capacity of sub-Saharan Africa is around 80GW, roughly that of Spain, more than half of which is generated in South Africa.

Scope of Work

Research & Analysis/Consultancy/Workshop Planning/Reporting & Recommendations

Approach & Solution

1. Assemble team of leading regional and international energy industry experts to identify the key challenges, formulate themes and develop issues for debate.

2. Convene principal stakeholders for a series of round-tables: including leading regional energy agencies, gas majors, regulators, consultants, bankers, financiers and others.

3. Carefully analyse and evaluate the feedback around the key themes and issues.

4. Prepare comprehensive report for the commissioning consortium, supported by key recommendations -as the basis for a strategic roadmap aimed at overcoming obstacles to (among other key factors) improving gas-infrastructure and securing investment.

Following the intensive research and discovery process, overseen by Precision’s oil and gas faculty, our team determined that the debate should be divided into two central tracks:

i. How to tackle Africa's power-gap.
ii. Dealing with country risks.

Both tracks were formed from a series of crucially important issues, of relevance to each. In preparing our report and recommendations, meticulous consideration was given to not only the feedback to each track and its related topics, but to the interdependence between them.

Outcome

In our findings, we determined that the case for gas-to-power in sub-Saharan Africa is strong, given the size and distribution of natural resources, the availability of associated gas and imports of LNG. By drawing together the principal stakeholders and forming a synthesis from their feedback and our earlier research, we were able to identify the root cause behind many of the challenges – and develop the strategic roadmap that members of the consortium draw upon today. Among the recommendations contained within our report and roadmap, we highlighted:-