The Oil Drum

30 comments on Non-OPEC Oil Supply Gains

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TI on January 3, 2006 - 11:21am

In fact, African gas production is not that high at the moment - only 145 Bcm in 2004 or considerably less than the EU domestic production. And part of it already heading to the US.

Ageria has been in decline from 1999. And there is also the domestic demand. If Africa wants to develop, it needs its own gas. Look at South America - they are building their regional pipeline system for their own use. This is where Bolivian gas is heading, for instance.

It is not only world natural gas production nearing to the peak, but also increasing domestic and regional use outside Europe end the US.

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Glenn on January 3, 2006 - 11:24am

Isn't Nigeria just flaring gas right now. Can't someone tap into that?

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Khebab on January 3, 2006 - 11:32am

My understanding is that NG is mostly profitable when it can be delivered throught pipelines straight to the customer. However, There is almost no market for NG in Africa. The only option is to develop a costly Liquified NG infrastructure.

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TI on January 3, 2006 - 1:28pm

Nigeria is flaring over 40% of its gas production. But it is also planning to increase considerably its electric power capacity by using gas. LNG transports are expensive and a real alternative should be to build local pipelines and power grids for transimission of gas-powered electricity. It is presently rapidly increasing its LNG capacity, so flaring will be reduced.