Natural gas is expected to account for 30% of Africa’s energy mix by 2050, with the development of LNG and CNG infrastructure driving gas adoption continent-wide. Ahead of the African Energy Week (AEW): Invest in African Energy conference, the African Energy Chamber spoke with Gabriel Lorenzi, Commercial Vice President: Africa, Middle East & Asia Pacific at Galileo Technologies about LNG and CNG in Africa and the strategic role of virtual pipelines.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.aecweek.com for more information about this exciting event.
How do LNG and CNG solutions align with the goals of sustainable development and energy equity in Africa, and what role does Galileo Technologies play in this adaptation?
Given the diverse and often challenging geographical and infrastructural landscape in Africa, LNG and CNG technologies enable us to bring any methane source closer to users. Our modular, plug-and-play, and scalable solutions allow us to access both small and large volumes of gas. This adaptability means we can connect various gas sources to clients, regardless of the volume size.
The development of local gas is also crucial for economies, as it improves the utilization of local resources and reduces the need for diesel or LPG imports. Local gas can be used instead, which is cleaner and more cost-effective. In terms of sustainability, being a local, cleaner, and more accessible resource, gas distribution facilitates wider access. During this transitional phase, where we must also address the challenge of energy poverty in the region, Galileo plays a central role. Our modular, flexible, and scalable technologies bring users closer to gas sources, ensuring a better future in this transition. Galileo makes gas possible and accessible in a cost-effective manner.
What do you perceive as the biggest challenges to the growth of the LNG and CNG market in Africa? How can these barriers be effectively addressed?
The biggest challenges are being managed and resolved in recent years. The adoption of new technologies is one of these challenges, but gradually, progress and commitments are being made that will allow the deployment of several medium and small-scale plants in the region in the coming years. Another barrier is access to financing, which is essential for small and medium-sized enterprises to adopt these technologies and enhance their operations.
Collaboration is key to overcoming these challenges. Partnerships between companies, such as NOCs and IOCs, are crucial. Additionally, engaging with financial regulatory entities, local communities, government incentives, and agreements between countries is vital. The best approach to addressing these barriers is to focus on the goal of reducing environmental impact while simultaneously improving the lives of people and local economies.
How does Galileo Technologies’ expertise in virtual gas pipelines position the company to address the unique energy challenges faced by African countries?
Our experience with virtual pipelines began in the 1980s in Argentina. At that time, Argentina was experiencing a natural gas boom with the discovery of one of the largest gas reserves in the region and the world – Loma de la Lata. There wasn’t significant infrastructure developed then, so we introduced the virtual pipeline solution to the world.
Later, as our history progressed, we replicated the concept with our LNG solution, further improving the model by reducing the volume of transport. The same amount of energy transported by four CNG trucks could be carried by just one LNG truck, significantly lowering operational costs, time, and logistical challenges. This model is particularly effective in addressing the region’s challenges in Africa, as well as in South America.
Please elaborate on Galileo Technologies’ role in the Mpumalanga onshore gas project in South Africa? How can LNG be utilized to address the country’s electricity crisis?
The Mpumalanga onshore gas project in South Africa, known as the Amersfoort project, is poised to reshape the country’s energy landscape and contribute significantly to its journey towards a diversified and sustainable energy future. The project, led by an Australian gas exploration company, aims to extract substantial gas reserves, making it South Africa’s largest onshore domestic gas initiative.
The importance of natural gas as a transition fuel is recognized by the South African government, which promotes the exploration and production of gas as part of its Integrated Resource Plan. Gas provides the necessary flexibility for cost-effective electricity generation and plays a crucial role in enhancing energy security and supporting sustainable industrialization. Galileo Technologies, with its modular LNG technology, could facilitate the materialization of a project like this and make possible the distribution of this resource in a reliable, cost-effective way. These units can be quickly deployed, ensuring the project moves forward in a short time.
What initiatives has Galileo Technologies undertaken to facilitate the transfer of expertise and technology to local African partners and stakeholders?
Our initiative to educate users, share our expertise, and knowledge is the backbone of our deployment in the region. With local representatives, we aim to promote our initiatives and enhance our presence. The simplicity of our modular technology makes it easier to understand, learn, and adopt this expertise. We always provide training through our extensive operations of modular LNG in various countries around the world. Additionally, our proprietary SCADA platform offers preventive maintenance, predicting equipment performance and enabling remote operation. This service is available to our customers and is central to the success of their operations.
What role does AEW: Invest in African Energy play in advancing opportunities for firms like Galileo Technologies?
In our vision, AEW is of central importance in addressing and discussing energy issues in the region. It brings together all the key players who can drive change in the country and the region, creating the perfect space for dialogue and finding solutions to bring energy to the people. This event facilitates the connection of local energy resources with users in need, helping to address energy poverty while maintaining the global conversation on energy transition.
AEW is the ideal platform to promote our modular energy technologies, which are crucial to this discussion. We look forward to meeting our esteemed friends and partners again this year to combine our synergies and add value to the region.
