In a remarkable turn of fortunes, European nations that hitherto sought to halt funding of fossil fuel projects across Africa are now scrambling to secure the continent’s hydrocarbon resources (both oil & gas).
Europe, one of the largest consumers of Russian gas (in view of cold winters and large industries), is now scrambling to find alternatives as Russia threatens to permanently turn off the taps. And so, it now looks on to Africa to save the day.
As already reported, Russias gas supply to Germany via the Nord Stream 1 pipeline was halted for routine maintenance last week, and there are concerns that Russia may not restart it –thus weaponizing gas, as it battles sanctions form the West.
This weaponization is evidenced by Moscow’s drastic effort to cut natural gas supplies to Poland, Finland, and Bulgaria, which refused Russias demand to pay in rubles. This act has already sent ripples through Europe, with the Bavarian Industry Association forecasting that Germany could lose almost 13 percent of its economic performance in the latter half of this year if Russian gas stops flowing.
With the threats of an energy crisis, German Chancellor Olaf Scholz jetted-off to Senegal in May to pursue the development of a gas field that is expected to open next year. European Union diplomats began talks with Nigerian officials in April, seeking to tap the country as an alternative gas supplier. Meanwhile, Italy has struck agreements with Algeria, Angola, and the Republic of Congo. This massive pivot away from Russia, the previous “energy darling of Europe”, has particularly shocked many African countries who were hitherto out of favour with Europe in terms of oil & gas.
This month, Italian President Sergio Mattarella visited the Mozambican capital of Maputo to discuss energy collaboration. The Italian energy company Eni announced recently that its floating liquefied natural gas (LNG) plant off the coast of Mozambiques insurgent-plagued Cabo Delgado province is expected to achieve its first LNG cargo in the second half of 2022.
As Europe scrambles for energy supplies, observers and Africans themselves are denouncing what they see as energy hypocrisy, considering that most African countries live under regular power shortages and are severely impacted by climate change. African governments have sought to develop new fossil fuel projects to meet local needs, but Western governments have demanded that multilateral lenders such as the World Bank stop funding those projects to reduce global carbon emissions.
A report released last week suggests some African countries will have to cut public spending elsewhere to meet the cost of adapting to a warming planet, which will eclipse their spending on health care. The entire continent is responsible for just 3 percent of global carbon emissions. That figure is far lower when coal-intensive South Africa, the biggest carbon emitter in Africa, is excluded. The average European uses more than six times as much electricity as the average African consumer.
Senegalese president Macky Sall at last year’s meeting of the U.N General Assembly said, Our countries cannot achieve an energy transition and abandon the polluting patterns of the industrialized countries without a viable, fair, and equitable alternative, Stopping funding for the gas sector would be a major obstacle.
Nigerian Vice President Yemi Osinbajo in a recent op-ed in the Economist called out Europe for its insistence that poorer nations freeze their carbon emissions, which richer countries in real terms have not committed to doing, because of a naive belief in leapfrogging, the assumption that, like skipping landlines for mobile phones, Africa can leap to new energy technologies. African leaders say those requests amount to a wish to keep the continent poor.
One argument against fossil fuel-dependent industrialization is South Africa, where scheduled power cuts, known as load-shedding, could rise tenfold by 2026 unless the country adds renewable energy sources, according to a study by Meridian Economics. The state-owned utility Eskom, whose aging coal plants have become unreliable, supplies 90 percent of the countrys energy. At the U.N. COP26 climate conference last year, Western nations pledged $8.5 billion to help the country transfer to greener energy.
