Despite SA’s gas market constraints, Nigerian energy infrastructure company Century Group is eyeing the country as part of its African expansion plans.
The Lagos-based company, which specialises in floating production storage and offloading (FPSO) technology and the commercialisation of stranded gas assets, said it was in “ongoing talks” with local partners on oil and gas infrastructure projects. The company was among the attendees at African Energy Week, which took place in Cape Town last week.
Speaking to Business Day on Friday, Preye Angaye, the group’s head of business strategy and new business, said the country’s regulatory environment and commitment to responsible energy development was appealing. “SA is conscious of environmental sustainability in hydrocarbon production, which we respect.”
Hydrocarbon development covers the exploration, extraction, processing and transport of oil and natural gas.
“The country is committed to developing its energy resources responsibly and we are in discussions about deploying services here,” Angaye said.
Century Group operates across upstream, midstream and downstream sectors, managing offshore production and storage facilities, terminals and logistics. It also handles offshore vessels, fabrication, security and stranded gas projects, including bringing idle oil and gas assets back into production. Its plans of expansion in Africa also include Angola, Gabon, Republic of Congo and Equatorial Guinea.
Gas supply gap
SA faces gas supply challenges, with local gas reserves fragmented across KwaZulu-Natal, Free State and offshore fields, while industrial demand is concentrated in Gauteng. Exploration projects have been constrained by regulatory hurdles, and energy-intensive industries have warned of supply risks.
Century Group is targeting SA’s midstream constraints, one of the hurdles preventing domestic gas from reaching industrial users and worsening the country’s supply shortfall.
Angaye said the company is looking into transport, storage and distribution solutions. “Midstream is key for distribution,” Angaye said. “It’s about putting the right infrastructure in place so areas with excess gas can supply those that are lacking.”
Project financing
Angaye acknowledged that funding remains a major challenge for large-scale energy projects, but said Century Group plans to navigate this through its relationships with development finance institutions and banks. He added that project financing is stronger when social benefits are considered alongside financial returns.
“If you look beyond oil and gas to the incremental returns to society, you get a clearer picture of the positive impact that financing energy infrastructure can have,” Angaye said, adding that this approach also helps spread capital costs.
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