In a pivotal move in the intra-African gas trade, Nigerian energy firm Riverside LNG has unveiled plans to export Liquified Natural Gas (LNG) to South Africa starting in 2027. The company is also exploring potential opportunities in Liberia and Cameroon. The move aligns with Nigeria's ambition to bolster its gas market, positioning itself as a regional LNG trading hub catering to nations across southern and West Africa, northwest Europe, the Caribbean, and South America.

David Ige, CEO of Riverside LNG, expressed optimism about the burgeoning gas market in the region, emphasizing the significant potential for Nigeria to serve as a pivotal trading hub. "We’d probably very early in the year close out another segment of the market, an off-take for South Africa," he noted. The initiative responds to the increasing interest in gas among countries within approximately 3,000 nautical miles of Nigeria.

Facing challenges such as rolling blackouts and financial constraints in the sector, South Africa aims to diversify its energy mix and reduce dependence on coal. Riverside LNG's export plans align with South Africa's broader strategy to address chronic energy issues and embrace a more sustainable energy future.

South Africa, grappling with persistent electricity shortages, emerges as a promising market, as people increasingly rely on gas stoves in the absence of reliable electricity, which has seen a significant price hike in recent months due to a new monopoly deal struck between PetroSA and BEE company EML Energy.

Additionally, South Africa has pursued a recent deal with Russian energy giant Gazprom for a gas-to-fuel refinery in Mossel Bay, and are busy closing deals with gas-fired powership supplier Karpowership.

While South Africa is currently dependent on imports for this resource sector, drilling off the Cape coastal region by French energy company Total may provide an easing of prices once operations take off.