The Africa Energy Bank (AEB), a crucial initiative aimed at driving investment in oil and gas projects across the continent, is on track to commence operations by the third quarter of 2024.
This development marks a significant milestone in the collaborative efforts of the Africa Petroleum Producers Organization (APPO) and the African Export-Import Bank (Afreximbank).
Dr. Omar Farouk Ibrahim, the Secretary General of APPO, announced in Accra that the preparations for the launch of the AEB have reached an advanced stage. The bank’s establishment is seen as a strategic move to bolster the energy sector in Africa, providing much-needed financial backing for various oil and gas projects.
Ghana has emerged as a strong contender for hosting the AEB’s headquarters. Dr. Ibrahim disclosed that an inspection team had recently visited Accra to evaluate the proposed headquarters building.
This inspection is part of a broader assessment process that includes other potential host countries such as Nigeria, Benin, and Algeria. The final decision on the headquarters location is pending further inspections and deliberations.
Meanwhile, significant progress has also been made in finalizing the foundational documents necessary for the establishment of the AEB. These include the Establishment Agreement, the Charter, and the Draft Host Country Agreement.
Dr. Ibrahim indicated that a closeout meeting had been held to negotiate these critical documents, bringing the project closer to fruition. “In the first week of June, I will return to Cairo for the signing of the documents by the founding members of the Bank, namely APPO and Afreximbank,” he said.
Financing the Bank
Regarding financing the Bank, Dr Ibrahim said payments had been received from a number of member countries even before the Bank would formally take off. “Moreover, we have received interest to invest in the Bank from outside the continent,” he added.
The two-day roundtable brought together oil and gas operators and regulators from APPO member countries to share experiences in various methodologies, technologies and regulatory frameworks in dealing with the challenges of gas flaring and fugitive methane emissions with a view to enhancing the understanding of how to handle the challenges.
The Petroleum Commission Ghana, hosted the roundtable on the theme: “Towards Zero Routine Gas Flaring and Lower Methane Emissions in APPO Member Countries’ Oil and Gas Operations.”
Dr Ibrahim indicated the subject discussed at the conference was of great consequence to the African oil and gas industry- namely the climate challenge and energy access.
Dr Ibrahim noted that the commitment to pursuing programmes aimed at zero routine gas flaring and minimizing fugitive methane emissions in member countries’ oil and gas operations was targeted at reducing emissions and thereby, contributing to alleviating environmental challenges and by implication, working towards achieving net- zero in emissions to the atmosphere, among others.
Mr Egbert Faibille Jnr, Chief Executive Officer, Petroleum Commission, Ghana, said the need to reduce greenhouse gas emission had been an area of global attention over the last century but had gained attention over the last decade.
Also, global drive had intensified with the looming negative impacts of climate change and global warming, while world leaders have stressed the need to limit global warming to 1.5°C by the end of the century. That led to various commitments and pledges from various countries, including Ghana.
Gas Flaring and Methane Emissions
Mr Egbert Faibille Jnr indicated that gas flaring and methane emissions are two important concerns that must be addressed by the petroleum industry in Africa, if the continent would meet its climate targets and continue to attract investments to its petroleum industry in a sustainable manner.
“It is important that as APPO member countries, we are aware of this important challenge, engage each other to exchange ideas on policy measures, state of art technologies and investments needed for minimising gas flaring and methane emissions in the operations of the industry.”
Mr Egbert Faibille Jnr
Gas flaring, the 160-year-old practice of burning natural gas associated with oil extraction, and the related methane emissions represent as much as 12 percent of the greenhouse gases released by the global energy sector.
“Phasing out routine flaring is one of the essential steps toward combining resource efficiency with long-term economic success and a way to strongly support our efforts to reduce the carbon footprint of petroleum operations.”
Mr Egbert Faibille Jnr
Mr John Aboah Sanie, Deputy Minister for Energy, on behalf of the sector Minister, commended APPO members for their resolve in ensuring that global emissions were reduced thereby, reducing the impact of climate change.
Mr John Aboah Sanie stated that Ghana on her part, has made a conscious effort to encourage all thermal power producers to utilize gas from producing fields thereby increasing their efficiency while reducing flaring from these fields.
He, therefore, expressed the hope that the conference would carve a path for the APPO member countries to reduce emissions, identify most productive uses of natural gas and enhance investments in the petroleum sector.
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