Multilateral finance institution the African Export-Import Bank signed a $162.9 million financing agreement with port infrastructure firm APD-Cameroon to support the construction of a $232.8 million port terminal in Douala in June 2024. The deal aligns with the Cameroonian government’s goals to strengthen ties with global investors to enhance logistics services that facilitate the development and monetization of energy resources.
This year’s African Energy Week (AEW): Invest in African Energy conference – scheduled from November 4–8 in Cape Town – will feature a dedicated panel discussion connecting global logistics companies with emerging opportunities in the African energy and transportation segments. Sponsored by logistics company Africa Global Logistics (AGL), the Fundamental Role of Logistics in Strengthening Supply Chains panel will feature Dennia Malkoc, Business Development Manager at Universal Africa Lines; and Mohamed Eidha Al Menhali, Regional CEO of AD Ports; and Leonid Shlyahturov, Executive Director of FESCO Integrated Transport, as speakers.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
Given the fact that 600 million people lack access to electricity in Africa, the continent’s logistics sector has a critical role to play in getting energy from project to consumer. Various developments to this effect are underway across the continent, with companies seeking enhanced operational and technical capacities to support oil and gas projects. SONILS, for example, is enhancing its human capital development and investing in new equipment and technologies at its Integrated Services Logistics Center in Luanda. The company is committed to supporting expanding oil and gas exploration and production in Angola. Additionally, in May 2024, AGL began manufacturing and transporting equipment for subsea umbilicals, risers and flowlines for global major Eni’s Baleine Phase 2 gas project in the Ivory Coast. The AEW: Invest in African Energy panel will highlight these developments, focusing on aligning Africa’s logistics services with the continent’s growing energy sector. During the session, speakers will provide updates on ongoing projects that aim to address the increasing demand for logistics driven by the rise in energy projects across Africa.
Global logistics companies are also investing heavily in port and terminal infrastructure to enhance energy distribution and trade. In June 2024, Emirati multinational DP World unveiled a $3 billion investment plan to modernize Africa’s infrastructure and services, including $2 billion dedicated to port infrastructure and $1 billion for logistics services. Additionally, the Luanda Port Authority signed a 20-year agreement with global logistics firm AD Ports to modernize and manage the Luanda Port Terminal, aiming to support the country’s efforts to monetize its 9 billion barrels of crude oil and 11 trillion cubic feet of natural gas. AGL also launched operations at its multipurpose terminal at Angola’s Port of Lobito, investing $221.7 million to reduce transit times for commodities headed to Europe and the Americas. The AEW 2024 panel will explore these investments and efforts to streamline energy trade both within Africa and internationally.
Furthermore, African oil and gas-producing nations are intensifying pipeline infrastructure to increase energy trade. South Sudan is collaborating with China on a new pipeline to enhance the monetization of oil from its hydrocarbon-rich Blocks 3 and 7. In August 2024, Equatorial Guinea and Nigeria also signed an agreement to develop the Gulf of Guinea Gas Pipeline, which will transport gas from Nigeria for processing in Equatorial Guinea. Meanwhile, the Nigerian National Petroleum Company is nearing completion of the Obiafu-Obrikom-Oben gas pipeline, designed to transport 2.2 billion cubic feet of gas within Nigeria. The AEW: Invest in African Energy panel will explore these initiatives and more, highlighting best practices to overcome challenges in energy transportation.
“African nations are making significant strides in developing and monetizing their oil and gas resources, offering lucrative opportunities for global logistics firms looking to invest in this highly promising region. Global energy market stability depends on a robust and modernized energy-logistics network,” stated NJ Ayuk, the Executive Chairman of the African Energy Chamber.
Distributed by APO Group on behalf of African Energy Chamber.