Africa Energy Corp targets 2033 for major gas project in South Africa

Africa Energy Corp, a company listed on the Toronto Stock Exchange Venture Exchange, has announced ambitious plans to initiate gas production from the Brulpadda and Luiperd discoveries off the southern coast of South Africa. 

These discoveries, representing the largest natural gas finds in the nation, are targeted to commence operations by the year 2033, according to a Reuters report. 

The above timeline was articulated by the company's Chief Executive Officer in a statement released on Tuesday.

The development of this significant energy resource represents a considerable step forward for South Africa's energy sector.

Notably, Africa Energy Corp is proceeding with this project following the decision of TotalEnergies, the previous operator, to withdraw from the venture. 

The successful execution of this plan could have profound implications for South Africa's energy security and economic landscape, reducing dependence on imported energy sources and potentially spurring industrial growth.

Approvals

Approval from regulators is pending for the company's revised environmental authorisation to conduct surveys in Block 11B/12B, located offshore of South Africa's southern region, according to the report.

South Africa aims to lessen its reliance on coal power by expanding its domestic gas usage.

To this end, multiple initiatives are underway, notably the construction of the nation's inaugural liquefied natural gas import facility on the eastern seaboard.

CEO Robert Nicolella was quoted in the report:

Nicolella stated that multiple strategic options for the gas market distribution are under active consideration. 

While exploring all avenues, the company's primary and preferred approach involves supplying a gas-to-power plant. 

This strategy aligns with their vision to directly contribute to the energy sector by fueling power generation. 

This preference is strongly influenced by the current energy demands and policy directives of South Africa. 

The nation has announced a substantial initiative to incorporate 6,000 megawatts of new gas-powered projects into its national energy infrastructure, representing a major shift towards diversifying its energy sources. 

Nicolella's comments underscore the company's alignment with these national objectives and their commitment to play a key role in South Africa's evolving energy landscape. 

Discussions with other companies

Currently engaged in discussions, Africa Energy's CEO has revealed talks with PetroSA, the former national oil company.

The aim is to leverage PetroSA's infrastructure at Mossel Bay for the purpose of landing gas extracted from the Brulpadda and Luiperd fields.

To expedite output, TotalEnergies had initially suggested leveraging PetroSA's existing facilities, such as the FA offshore platform situated in Block 9.

A plan was formulated to link Block 11B/12B to the current subsea pipelines connecting to the FA platform, and subsequently extend the connection to Mossel Bay.

Nicolella said of using PetroSA infrastructure:

Following the withdrawal of TotalEnergies, QatarEnergy, and Canadian Natural Resources from Block 11B/12B last year, Africa Energy's subsidiary, Main Street 1549, which holds majority ownership, remains the block's operator.

As stated on Africa Energy Corp's website, Main Street will possess a 75% participating interest in the block, with Arostyle Investments holding the remaining portion.