African Leaders Should Promote Investment Opportunities In Oil Gas Sector To US, European Investors— Stakeholders

NEW ORLEANS: European lenders and players in the global gas industry have said that Nigerian leaders and leaders in the different oil and gas-producing countries in the continent have a lot of work to do in promoting investment opportunities in their energy industry.

The stakeholders, the Project Sales Manager of Grupo Cunado, Jason Hueske, and the Managing Director, of Global LNG Commodities and Global Markets, Macquarie Group Limited, Michael Bennett said this at the Americas Energy Summit 2024 in New Orleans, USA.

Oil and gas-rich Nigeria and other African producers are seeking investment in the industry which would allow them to achieve a just energy transition by 2060.

Nigeria has over 308 trillion cubic feet (TCF) of proven gas, however, it needs more investment from International Oil Companies (IOCs) and financing from international lenders to develop its gas reserves.

Hueska told THE WHISTLER that the Nigerian government needs to do more to create a better impression and remove regulatory bottlenecks that impede investments in the oil and gas sector.

He said, “A lot of the IOC and lenders do not understand the Nigerian terrain. Some of them hear only bad news on how difficult it is to operate and invest their resources in the Nigerian market.

“A lot of them have interest but are not properly informed about the market. So, if your leaders can ramp up efforts in creating awareness in the US where there are big investors and in Europe, I think investments will start coming to Africa.

“African leaders need to promote the available opportunities and sell a good image.”

During a panel discussion on, ‘Why is financing LNG projects proving so difficult? Balancing increased natural gas demand, increased cost of capital and ESG commitments,’ Bennett highlighted some of the issues with financing gas projects in Africa.

Responding to questions from THE WHISTLER, the MD acknowledged that there are many investment opportunities in Nigeria and other gas producers.

However, he said there are issues around regulatory bottlenecks.

Another panellist, Director – Project Finance, Natural Resources, Mizuho Americas, M. Estefanía Michel Ortega, said equity and debt financing for gas projects will improve in the near future.

However, she said governments need to improve on their policies.