building gas ventures in africa rod macalister rj_macalister - final.pdf · less than 10% of...

© Monetizing Gas Africa Inc.1

Building Gas Ventures in Africa

Rod MacAlister

31 October 2016

http://www.monetgas.com/


https://www.linkedin.com/company/10160501?trk=prof-exp-company-name


https://twitter.com/monetgas1


https://plus.google.com/u/0/communities/110547890377956300273



Flow of talk

1. The Cases…

2. The Journey and its forces

3. Who is Monetizing Gas Africa?


Flow of talk

1. The Cases…




The Case for Gas

Natural gas is widely regarded as the transition fuel to a lower carbon energy production.

Natural gas can be used to produce heat and electricity; as a feedstock in manufacturing; and can also support renewable energy production.

Globally, natural gas reserves are widely dispersed, and technological advances have dramatically expanded access to unconventional sources. Source: BP Statistical Review of World Energy 2016

Gas Share of Global Primary Energy


The Case for Monetization of Africa’s Gas

African gas is abundant: proven reserves total over 600 trillion cubic feet, with significant further potential to add to reserves.

Less than 10% of Africa’s gas reserves are monetized. Much of the gas that is produced daily is wasted by flaring.

22 African countries (out of 55) have gas reserves, and exploration for gas continues across the continent.

LNG has made gas fungible, enabling a global market to develop that will grow substantially, with Africa as a key player.

Consumer demand is expected to grow by as much as 40% by 2030.

Gas to Power Potential to 2040 – 400 GW requiring >US$100 billion

Countries with Proven Gas Reserves

@2016


The Case for African Gas Companies

Significant investment drivers include:

market growth from the electricity generation, transportation and industrial sectors;

the potential to connect resources and LNG supplies (imports and exports) to international and African markets; and

government incentives to promote the gas industry and reduce flaring.

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The Case for Monetizing Gas Africa (MGA)

We put gas to work across Africa with infrastructure linking gas to consumers.

We optimize infrastructure of gas, energy, power, fuels, materials and capital through our skills and experience.

We develop intellectual capital - for competitive advantage and the greater good.


Flow of talk

1. The Cases…




The Journey: Past to Present

• Evolution of gas supply• Established suppliers: Middle East, Russia

and CIS, North Sea

• Rapidly developing: North America (shale), Australia and Africa

• Evolution of gas market demand• Established markets: Europe and North America

• Developing: Asia (Japan, South Korea, China, Malaysia)

• New Markets: Africa, Asia (India, Indonesia, Thailand)

• Gas-to-Power: a large driver of demand

• Technologies• Logistics: LNG/CNG/FLNG/FSRU

• Gas-to-Liquids: Small-scale, Modular Systems

• Gas-to-Power

% Change in Global Natural Gas Consumption

Source: BP


The Journey: Present to Future

• Gas supply• Geographically dispersed sources for gas

• Significant piped and seaborne market (LNG)

• Africa a key supplier in the long term

• Gas market demand• Diverse global market

• Africa demand driven by development

• Gas-to-Power: a large driver of demand in emerging markets

• Technologies• Logistics: LNG/CNG/FLNG/FSRU cost decline due to

advancement of technologies and increases in availability of the global fleet

• Gas-to-Liquids: Hydrogen Fuel Cells

• Gas-to-Power: cost and efficiency improvements

First FLNG Facility – PFLNG SATU – 1.2 Mtpa of LNG


Supportive Forces

• Supply• Significant gas reserves in Africa that needs monetization

• Global surplus LNG is looking for markets, including in Africa

• Demand• Global gas demand

• Increasing global gas demand driven by piped gas and LNG

• Africa gas demand

• Increasing Africa gas demand: liquid fuels, industry and power

• Investment• Proven Asset Class

• Investments into dedicated midstream oil and gas assets

• Annuity returns from infrastructure

• Pricing• Increasing price convergence

Growth in LNG-to-Power Projects


Hindering Forces

• Most of Africa’s resources have been monetized for international markets and export

• Low domestic investment

• Development of domestic markets is held back by:• Inability to Assess the Market with certainty

• Investment inefficiency (significant opportunity cost):

• Corruption, “cost of government”

• Delay, Inaction

• Lack of professional gas and infrastructure expertise

• Under-developed Policies & Frameworks

• Patient Capital - time horizon for returns• Private Equity / Funder time horizon – 3-5 Years

• Requirement – 10+ years

• Competitor investors with less focus on governance and local development

Headwinds?


Flow of talk

1. The Cases…




What MGA offers

• Investor, Developer, Operator • Focused on gas infrastructure in Africa

• Experience and Expertise• On-the-ground experience in Africa

• Operational and project experience

• Gas Infrastructure experience

• Oil & Gas capital raising experience

• For Investors:• Experienced Team, Projects &

Annuity Returns

• Governance• Strong values

• Intensive project management

Chief Executive Officer,Rod MacAlisterAmerican

Chief Operating Officer, Pierre RaillardFrench

Chief Strategy Officer, Ebrahim TakoliaSouth African

Chief Financial Officer,Andrew MoorfieldBritish / Australian

Chairman – to be announced.

EconomistLamé VerreNigerian


We’re looking for…

• A solid demonstration of the investment thesis:• Gas + Midstream + SSA = Win

• Investments:• 1st: Operating assets

• 2nd: Projects – Brownfield, Greenfield

• To be a Partner of Choice:• Upstream companies looking to monetize resources

• Projects looking for credible partners

• Investors seeking African energy infrastructure investments with stable returns

© Monetizing Gas Africa Inc.2016 © Monetizing Gas Africa Inc. 16

Corporate Headquarters: Washington DC, USAAfrica Operations Office: Cape Town, South Africa

[email protected]









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