East Africa Could See Investments of $994 mn in Offshore Exploration

East Africa is expected to see investments close to $994 million in offshore exploration projects in next 12 months, pointing to a growing interest in regions energy prospects.

The cost includes drilling of 33 exploration wells with much of the money going towards infrastructure, development of pipelines, liquefied natural gas (LNG) plants, power plants and storage tanks, The East African said citing a report from Ecobank.

East Africa’s proximity to energy-thirsty Asia may give the continent easy access to growing markets in Japan, India, China and South Korea, the report said.

The region’s reserves of about 176.7 trillion cubic feet of natural gas are concentrated in Mozambique and Tanzania, the only producing countries. Tanzania’s gas is currently for domestic use, and midstream investments will be required to open up the export market.

The bank has said that region’s gas reserves are capable of supporting up to 16 LNG trains.

“Various decisions taken by governments on how to harness the region’s gas resources will boil down to the simple choice of wasting a valuable asset or monetising its development benefits,” said Ecobank.