Preparations for the launch of the Africa Energy Bank (AEB), a collaborative project spearheaded by the Africa Petroleum Producers Organization (APPO) and Afreximbank, have reached an advanced stage.
Once established, the Bank will focus on investing in oil and gas projects across Africa.
Secretary General of APPO, Dr. Omar Farouk Ibrahim, announced in Accra that Ghana is a leading contender to host the AEB Headquarters.
Dr. Ibrahim mentioned that an inspection team recently visited Accra to evaluate Ghana’s proposed headquarters building. The team is also inspecting other proposed locations in Nigeria, Benin, and Algeria.
At the recently concluded APPO Roundtable conference in Accra, Dr. Ibrahim discussed the progress on the Bank’s founding documents, including the Establishment Agreement, the Charter, and the Draft Host Country Agreement.
“We are confident that the Bank shall take off before the end of the third quarter of 2024,” he stated.
Regarding the financing of the Bank, Dr. Ibrahim noted that several member countries have already made payments, even before the Bank’s formal launch.
The two-day roundtable gathered oil and gas operators and regulators from APPO member countries to share experiences and methodologies for addressing gas flaring and fugitive methane emissions, with the aim of enhancing their understanding and handling of these challenges.
The Petroleum Commission Ghana hosted the roundtable under the theme: “Towards Zero Routine Gas Flaring and Lower Methane Emissions in APPO Member Countries’ Oil and Gas Operations.”
Dr. Ibrahim emphasized the significance of the topics discussed at the conference, particularly the climate challenge and energy access in the African oil and gas industry.
He highlighted the commitment to achieving zero routine gas flaring and minimizing fugitive methane emissions in member countries’ oil and gas operations, which is crucial for reducing emissions and tackling environmental challenges, ultimately aiming for net-zero emissions.
Mr. Egbert Faibille Jnr, Chief Executive Officer of the Petroleum Commission, Ghana, underscored the importance of reducing greenhouse gas emissions, a global priority over the past century, which has gained increased attention in the last decade due to the adverse impacts of climate change and global warming.
He noted that gas flaring and methane emissions are significant concerns that must be addressed by Africa’s petroleum industry to meet climate targets and attract sustainable investments.
Gas flaring, a 160-year-old practice of burning natural gas associated with oil extraction, and related methane emissions account for up to 12 percent of greenhouse gases released by the global energy sector.
Mr. John Aboah Sanie, Deputy Minister for Energy, on behalf of the sector Minister, praised APPO members for their commitment to reducing global emissions and combating climate change.
He highlighted Ghana’s efforts to encourage thermal power producers to utilize gas from producing fields, thereby increasing efficiency and reducing flaring.
Mr. Sanie expressed hope that the conference would pave the way for APPO member countries to reduce emissions, identify the most productive uses of natural gas, and enhance investments in the petroleum sector.
As part of the conference, the Petroleum Commission organized a tour for delegates from various African countries to the Sunon Asogli Power Plant and the Tema Oil Refinery to showcase processes for reducing oil and gas flaring and methane emissions.