Ethiopia looks to natural gas to fuel its growth
Prime Minister Abiy Ahmed told parliament on Thursday that his administration would begin its first-ever gas export 'in the near future,' which would mark a milestone in the nation's economic transformation.
Dr Abiy said the country had previously attempted to explore and export natural gas during the tumultuous DERG regime and before, but none of those efforts came to fruition.
Now, Ethiopia has partnered with new companies for gas exploration, he added.'Following the completion of the first phase, the second phase of the gas project will also be launched in due course,' he said.
Dr Abiy's announcement comes after the country indicated in its Energy Outlook report of May that the government had cancelled the planned natural gas extraction in the Ogaden region, and a pipeline project to Djibouti for export as LNG, due to 'challenges in securing project financing and slow project implementation contributed to this decision.''This cancellation limits Ethiopia's ability to generate revenue from natural gas exports and diversify its energy sources. Use of domestic natural gas would increase CO2 emission, but could be a relevant option to balance generation in dry years and reduce the need for fertiliser imports,' the Water and Energy ministry said.
According to the new report, Ethiopia is currently extracting coal for industrial use.'The future role of natural gas in Ethiopia's energy mix will depend on the feasibility of new extraction and distribution projects, alongside economic and geopolitical considerations,' the report says.'Natural gas could potentially be used to compensate for the missing generation from hydro in dry years,' the new report says.
Ethiopia has significant oil and natural gas potential in the Ogaden Basin, especially Calub and Hilala fields.
The Ministry of Mines wants to work with Ethiopian Electric Power to integrate natural gas into electricity generation.
The country is dependent on imported petroleum products, with current costs in excess of $4 billion annually.
The policy will focus on natural gas exploration and prioritise development of the sector to open the area for companies and to encourage investments.
It relies on renewable energy sources for electricity, with hydropower contributing over 90 percent of the country's supply.
Major projects such as the Grand Ethiopian Renaissance Dam (GERD), with a capacity of 5,150 MW, and the Koysha Hydroelectric Power Plant, with a capacity of 1,800 MW, are crucial for meeting the growing demand for electricity.
The GERD is currently producing 2,350MW and is planned to reach full capacity within a year.
In addition to hydropower, wind farms such as Adama and Aysha contribute to the national grid. The country also has significant untapped solar and geothermal potential.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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