Natural Gas and Sustainable Development Goals Opportunities and - - PowerPoint PPT Presentation

Natural Gas and Sustainable Development Goals

Opportunities and Challenges for Africa

Dr Sun Xiansheng Secretary General, IEF Riyadh

Contents

• Current reality: Where we are today
• Global energy trends and projections
• Natur

ural Gas Adva dvant ntage ges

• Three Key Challenges

Global Primary Energy Fuel Shares and Outlook for 2040

Fossil Fuel demand will range between 60% and 75%

Natural gas shows strongest growing share among fossil fuels

27% 28% 25% 22% 12% 22% 21% 9% 32% 32% 29% 28% 23% 28% 28% 28% 22% 22% 25% 25% 25% 25% 25% 26% 5% 5% 5% 5% 9% 6% 0% 0% 3% 2% 3% 3% 4% 3% 0% 0% 10% 10% 9% 10% 11% 10% 0% 0% 2% 1% 5% 7% 16% 6% 0% 0% 26% 37%

IEA OPEC IEA CPS IEA NPS IEA SDS OPEC REF OPEC SEN. A OPEC SEN. B 2016 (IEA) 2015 (OPEC) 2040

Coal Oil Gas Nuclear Hydro Biomass Other renewables All other

Sources: IEA WEO 2018, Annex Tables; OPEC WOO2018, Table 2.2 and 9.10.

.

Natural Gas Advantages For Africa

Five key advantages for natural gas

• 1. Sustainability
• Natural gas will improve energy access in Africa

(electrification rate) and facilitate orderly energy transitions.

• Energy transition is a comprehensive strategy

that should include both natural gas and renewables.

• Natural gas releases up to 50 percent less

carbon than coal and 20-30 percent less than

• il.

Natural Gas Industry Sustainability

Sustainable Development

• f Natural

Gas Enterprises Sustainable Supply of Natural Gas Resources Sustainable Progress of Natural Gas Technologies Sustainable Promotion of Natural Gas Policies Sustainable Utilization of Natural Gas Resources

Source: Uppsala University, China University Petroleum

Natural Gas Advantages for Africa

Five key advantages for natural gas

• 2. Cost Competitiveness
• A price of around $8/MMBtu can be

competitive with oil-fired power at an oil price as low as $50/barrel.

• Use of oil in power generation is one

reason why electricity is expensive in many Sub-Saharan African countries.

1 2 3 4 5 6 7 8 9

Henry Hub Natural Gas Spot Price Dollars per Million Btu

Source: US Energy Information Administration

Natural Gas Advantages for Africa

Five key advantages for natural gas

• 3. Resource Abundance
• Africa has 7 percent of global reserves

and sub-Saharan Africa is estimated to have 400 gigawatts of gas-generated power potential.

• Development of natural gas supply

ensures robust energy security and decreases dependence on foreign markets.

Source: BP Energy Outlook 2019

Natural Gas Advantages for Africa

Five key advantages for natural gas

• 4. Regional Integration
• Natural gas infrastructure (pipelines, LNG,

cross-border interconnections) between countries can enhance cooperation and transparency.

• Signing of African Continental Free Trade Area

(AfCFTA) has sown the seeds for pan-African collaboration and investment.

• Potential precursor to an Asian Gas Hub to

establish transparent and reliable market signals and liquidity.

Natural Gas Advantages for Africa

Five key advantages for natural gas

• 5. Economic

Opportunities

• Expanding Africa’s infrastructure for

natural gas would promote rapid industrialization.

• Availability of local natural gas supply can

spur investment in other industries such as agriculture and petrochemicals.

SDG’s are contingent on policy and technology dialogue and cooperation

3 Key Challenges for Africa

1.

• 1. Improving Energy Access

2.

• 2. Facilitating Energy Transition

3.

• 3. Increasing Cooperation and Dialogue

Key Dialogue Meetings

1.

• 1. The

he 10t 10th I h IEA-IE IEF-OPEC S Sym ympos posium um on E

• n Ene

nergy gy Out utlooks

• oks on 18
• n 18

Febr brua uary 2020 i y 2020 in n Riya yadh, S dh, Saudi udi Arabi bia 2.

• 2. The

he 7t 7th I h IEF-IGU Mini nisterial Gas F For

• rum

um on 20

• n 20-21 S

21 Sept ptembe ber 2020 2020 in K n Kua uala Lum umpur pur, , Malays ysia 3.

• 3. 5th IE

IEA-IE IEF-OPEC Sym ympos posium um on G

• n Gas and

nd Coa

• al M

Marke ket Out utlooks

• oks

Nove

• vembe

ber 2020 2020 4.

• 4. The 17th IEF Ministerial Meeting in Riyadh in 2020