Riverside LNG, an energy company based in Nigeria, is currently in discussions to supply gas to South Africa starting from the first quarter of 2024.
This potential agreement signals the first collaboration in the energy sector between the two nations.
Riverside LNG’s CEO, David Ige, mentioned in an Abuja interview that the company is actively pursuing new deals on the continent, having recently entered a gas-export partnership with Johannes Schuetze Energy Import AG of Germany.
Nigeria boasts the largest gas reserves in Africa, and Riverside LNG aims to close a significant market segment early in the year, providing gas to South Africa.
Ige highlighted the expanding gas market within a 3,000 nautical miles radius of Nigeria, covering southern and western Africa, northwest Europe, the Caribbean, and South America.
While maintaining confidentiality regarding discussions with South African counterparts, Ige mentioned the company’s exploration of opportunities in Liberia and Cameroon.
Notably, South Africa faces persistent power shortages, relying on coal for 80% of its electricity. In response, there’s a shift toward renewable sources, with a goal to achieve 60 gigawatts of power from renewables by 2030.
Riverside LNG’s initiative aligns with the Southern African Development Community’s $17 billion plan for natural gas infrastructure, aiming to enhance energy provisions in the region through investments in pipelines and terminals. Ige sees a substantial opportunity for Nigeria to become a trading hub within this evolving landscape.
