Nigeria and South Africa nearing first-ever gas deal

Nigeria-based Riverside LNG revealed it is in talks to export gas to South Africa, which would represent the inaugural energy deal between the nations. Riverside, boasting Africa’s largest gas reserves, recently signed an export agreement with a German partner and now pursues additional continental deals per CEO David Ige.

Ige disclosed nearing finalization of an South African off-take in 2023, tapping massive regional demand within 3,000 nautical miles. This vast area encompasses southern, western, and northwest Africa plus the Caribbean and South America. Citing confidentiality, Ige declined specifics but confirmed parallel discussions with Liberia and Cameroon.

South Africa, facing chronic power shortages from its unreliable coal plants, seeks to purchase more electricity from private producers although grid and legal constraints persist. With no current LNG import capability, Riverside’s 2027 delivery timeline allows development of required infrastructure.

As South Africa plans to generate over 60% of its future energy needs from renewables, gas plants offer critical stability alongside growing solar and wind. With the Southern African Development Community backing a $17 billion regional gas infrastructure blueprint, Nigeria eyes a pivotal role as a supplier hub. Riverside’s accelerating South African deal signals first steps in this direction.