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AIX: Gas 2018

11-12 April 2018

Africa Investment Exchange: Gas

Developing partnerships along the value chain

11-12 April 2018, RSA House, London

Sponsored by Actis, Azura Power and Watson Farley & Williams, the fourth annual AIX: Gas meeting was held in London on 11-12 April. The meeting was held under the Chatham House Rule and structured around interactive panel-led sessions to encourage an open debate.

Download the full AIX: Gas 2018 agenda

AIX: Gas 2018 agenda highlights included:

  • Separate regionally-focused streams looking at developments in West Africa (with a focus on Senegal, Nigeria and Ghana), Central Africa (Cameroon and Equatorial Guinea) and East and Southern Africa.
  • Financing along the value chain – examining the issues surrounding the financing of GTP, LNG and upstream projects, including progress of O&G projects towards FID, lessons from successful FID decisions and the potential for stronger partnerships and co-operation along the value chain.
  • Gas to market – Project stakeholders from Equatorial Guinea, Mozambique, Senegal, Nigeria and Ghana discuss the challenges of developing an indigenous gas industry that serves both African and international markets.
  • Africa Gas Outlook – highlighting key trends, with expert analysis and data from African Energy Live Data.
    Building an LNG value chain – focusing on, the prospects and competitiveness of African LNG amid growing global supply availability, FLNG, FSRU, onshore projects and the complexity of the LNG to power value chain.
  • The potential for working with ‘new’ investor classes – From the European Commission and African Development Bank to upstream operators, gas industry investors are looking to tap into new sources of private capital to finance the take-off African energy industries need.
  • AfricaHardball – Political issues that weigh on Africa’s gas industries.

Keep me updated on AIX: Gas and other future AIX meetings.

Oliver Quinn
Vice President – Commercial, Kosmos Energy
Pierre Raillard
Head of Business Development, Orca Exploration
Vincas Snipas
Managing Director, Whitehall & Company
John-Patrick Sweny
Counsel, Latham & Watkins
Erik Wandrag
Director, Sanlam InfraWorks

DAY 1 - AIX Gas 2018

Wednesday 11 April

08h30 to 09h00 Registration & coffee

09h00 to 10h45

Africa Gas Outlook
Chair: Jon Marks, Chairman, Cross-border Information (CbI)

The opening session highlighting key trends, with expert analysis and data from African Energy Live data to kick off the discussion. Countries and issues will include Cameroon, Egypt, Equatorial Guinea, Ghana, Mozambique, Nigeria, Senegal, South Africa, export/import potential with moderated debate on:

  • LNG (and FLNG) export prospects around the continent.
  • Local content strategies and development of domestic and regional gas markets.
  • Domestic gas-to-power (GTP) schemes, from domestic resources and imports (including an overview of project prospects through to 2025).
  • Regional pipelines, GTP transmission and other projects.
  • Pricing issues – the domestic versus export sales debate: are they coming closer?
  • Oil majors: re-examining their position in Africa’s natural gas market.
  • Bringing upstream players, power developers, private equity and other backers closer together.

10h45 Coffee

11h15 to 12h30

Chair: Antony Goldman, Oil & Gas Analyst

West African challenge

Many export and domestic Nigerian gas projects have stalled, underlined by the chronic shortfalls of supply through the West African Gas Pipeline. But the region retains huge resources, a vibrant business culture and major needs for power and revenues, which provide opportunities along the value chain. Panellists will focus on:

  • Domestic markets: monetising upstream developments or moving to FSRU (LNG import) solutions for GTP – in Côte d’Ivoire, Ghana, Nigeria and other markets.
  • Regulatory frameworks required to develop gas resources across the region.
  • How can floating regasification projects be successfully structured in West Africa?
  • Is nimble LNG shipping replacing white elephant pipeline schemes?
  • Developments in offshore – including the emerging Senegal-Mauritania (MSGB Basin) play and potential markets.

12h30 Lunch at RSA House

13h30 to 14h45

Gas to market

Chair: Andrew Fisher, Senior Associate, The Energy Contract Company

Project stakeholders discuss the challenges of developing an indigenous gas industry that serves both African and international markets.

  • Upstream perspectives: barriers to commercialising Africa’s gas deposits
  • Industrial developments: monetising gas for industry, domestic distribution and other purposes
  • Regulatory changes and pricing issues facing the industry in different countries
  • Feedstock gas for fertiliser production and other opportunities
  • Prospects for future pipelines and LNG regasification terminals
  • Developing an LNG supply industry that can compete in the international market
  • Development finance institutions: what is their role in these developments

14h45 Coffee

15h15 to 16h30

Gas-to-power investment strategies

Chair: Dave Peacock, Director, Azura Power Holdings

Project developers and their financiers seem keen to buy into the continent’s fast-rising demand for GTP but actual projects remain thin on the ground.

  • Is it really a boom market? What does the project pipeline data tell us?
  • Security of supply: sourcing fuel for power generation.
  • A GTP independent power producer (IPP) case study – is it replicable?
  • Sources of investment and instruments that can catalyse private investment (from multilaterals, government-owned DFIs, insurers and ECAs).
  • Engaging with government: what do national and local administrations, and regulators want from a project? How does this align with what developers and financiers need to make projects work?

 

16h30 to 17h30

AfricaHardball™ – Political issues that weigh on Africa’s gas industries

Chair: Jon Marks, Chairman, Cross-border Information (CbI)
CbI’s AfricaHardball™ formula of hard-hitting debate on governance, security and other political issues surrounding Africa’s gas issues is adapted to end Day 1 of AIX: Gas with a panel discussion on questions that should concern all stakeholders. It will comprise:

  • Panel discussion on key political issues from governance in South Africa and Nigeria to localised discontent and working with diverse communities across the continent
  • Local content and domestic supply obligations: how do policies compare?
  • Questions of critical risks as perceived by the audience

Seeking out patterns, providing scenario-building, based on the input at Hardball and earlier discussions.

17h30 Evening reception at RSA House

DAY 2 – AIX Gas 2018

Thursday 12 April

08h30 to 09h00 Morning coffee at RSA House

09h00 to 10h30

East and Southern Africa - What is realistic?

Chair: Steve Husbands, Head of Commercial – Oil & Gas Advisory, SLR

Leveraging the region’s huge natural resources to develop industry, stimulate domestic growth as well as supply regional and international markets.

Tanzania

  • Policy focus: what impact has the government had on the country’s gas market
  • Export market: prospects for LNG (conventional and FLNG)
  • Domestic market: supplying industry and GTP

Mozambique

  • Policy focus: update on the current policy environment
  • Export market: prospects for LNG (conventional and FLNG)
  • Domestic market: supplying industry and GTP

Namibia

  • Challenges of harnessing offshore gas reserves for domestic power development

10h30 Coffee

11h00 to 12h30

Financing along the value chain

Chair: Paul Eardley-Taylor, Oil & Gas, Southern Africa, Standard Bank

  • Securing investment in exploration and project development.
  • Overview of recent project finance deals
  • Debt finance across the supply chain – what is available and when?
  • New business models and forms of partnerships emerging in the sector
  • Raising financing and risk allocation for projects
  • Trends in M&A activity and asset deals
  • Private equity investment strategies
  • Mitigating financial and operational risks The potential for working with ‘new’ investor classes
  • The possibility of tapping pension funds and sovereign wealth funds; export credit agencies; equities investors (the JSE, LSE and others are reshaping their thinking on Africa); family offices and private investor classes that are taking an interest in Africa; and other institutional investors

12h30 Lunch at RSA House

DAY 2 – AIX Gas 2018 - Building an LNG value chain

13h30 to 14h30

LNG market

Chair: David Drury, Managing Consultant, Gas Strategies

Overview of global LNG market, LNG pricing and impact on LNG buyers

  • Challenges and opportunities in the LNG market and what this means for African LNG producers
  • Evolving LNG pricing mechanism and contract commitment

14h45 to 15h45

LNG to power and small-scale LNG

Chair: John Smelcer, Partner, Webber Wentzel

  • Obstacles and benefits of an integrated LNG to power project
  • LNG to power models in South Africa, elsewhere in Africa and in other continents
  • Does LNG to power require utlity scale or is small scale getting to a point where it can stand on its own and anchor the value chain?
  • To what extent can small scale LNG piggy back off utility scale LNG import to power as a third party offtaker and create demand beyond anchor power?
  • Viability of Africa to Africa LNG market
  • Financing and implementing small-scale LNG projects
  • Adopting LNG for transport and industry: what is realistic?

17h00 End of AIX : Gas

Participants included:

Government officials, NOCs and utilities
Department of Trade & Industry South Africa
ENH, Mozambique
Gas Aggregation Company Nigeria
Ghana National Petroleum Corporation (GNPC)
Ministry of Mines and Energy, Namibia
Moroccan Agency for Sustainable Energy (MASEN)
Niger Delta Power Holding Company
Nigerian Electricity Regulatory Commission
Office National des Hydrocarbures et des Mines (ONHYM), Morocco

Finance and investment
Actis, Africa Bridge Capital Management, African Infrastructure Investment Managers (AIIM), CDC Group, Energy Investment Company, IFC, Jiva Capital, Kapok Capital, Nedbank, Overseas Private Investment Corporation, Pembani Remgro, Power Africa, Rand Merchant Bank, Standard Bank, Whitehall & Company

Power sector developers
AEP Energy Africa, Aldwych International, Azura Power Holdings, BWSC, Clarke Energy, Cummins, Impala Energy, InfraCo Africa, Mitsubishi Hitachi Power Systems Africa, Odebrecht, Wartsila

Oil and gas project developers
Aminex, Angola LNG, Bowleven, BP, Cheniere Energy, Engie, Eni, Falcon Corporation, Gasfin Development, Glencore UK, Golar LNG, Höegh LNG, Modec, Mitsui OSK Lines, Monetizing Gas Africa, Nigeria LNG, Neoleum, OneLNG, Orca Exploration, SCDM Energy, Sempra Global, Seven Energy, Shell, SPIE Oil & Gas Services, Stolt‑Nielsen Gas, Total, Victoria Oil and Gas, Vitol, Wison Offshore & Marine, Woodside Energy

Professional services
Africa Energy Study Group, Baker McKenzie, Centurion Law Group, Chatham House, Clyde & Co, Control Risks, Cross-border Information (CbI), Gas Strategies, Herbert Smith Freehills, IPA Advisory, Latham & Watkins, Poten & Partners, SLR Consulting, The Energy Contract Company, Watson Farley & Williams, Webber Wentzel, White & Case