K&M Advisors continues to support the energy transition in West Africa. Many West African countries still rely on diesel and heavy fuel oil (HFO) to satisfy their energy needs. National power utilities use these fuels to provide baseload power. Large mining operations use diesel or HFO for power generation and heavy-duty equipment (hauling trucks, trains, excavators, crushers, etc.). With abundant domestic gas reserves in the region (Nigeria, Mauritania, Senegal, Angola, Morocco, and others), it is imperative to find regional solutions to transition away from diesel and HFO and into using the abundant regional gas reserves. This transition could boost economic development by reducing the cost of energy, increasing access to energy, reducing pollution, and increasing energy security.
K&M is working hard to assist private and government stakeholders in finding pragmatic and robust solutions to make this transition a reality.
K&M is working with private and government stakeholders in Mauritania to determine the most viable uses of Bir Allah gas for domestic consumption and the potential market for LNG exports. This includes analyzing how gas could be used for grid-connected power generation, off-grid mining power generation, hauling trucks, mining locomotives, and several other applications. K&M is estimating the gas demand from these applications, analyzing the economics of switching to natural gas, and developing pragmatic roadmaps and implementation plans to make this transition a reality.
K&M is also working in Morocco with two private companies to develop a gas-to-industry business that will use gas from the Acnhois field to displace LPG, Diesel, HFO, and other fuels used by industries in Tanger, Kenitra, and Casablanca. The business will help industries save energy costs and reduce their carbon footprint by replacing existing fuels with natural gas. K&M will analyze options for transporting gas via a virtual pipeline (in liquid or compressed gaseous form), perform the conceptual design and cost estimates of the required facilities, analyze the business case for each industry to switch to natural gas, and design the special purpose vehicle (SPV) that will operate the gas-to-industry business.
K&M’s West Africa work also includes a more in-depth analysis of the business case for using natural gas for an alumina refining plant under development in Guinea. A private company is considering supplying gas from LNG imported in Kamsar to a regional mining customer. This mining customer is considering constructing a new alumina refinery that would produce 1–2 mtpa of alumina, whose electricity, steam, and calcination needs would be met by energy from LNG/natural gas. K&M is performing a pre-feasibility study of the energy supply solutions (either in the form of electricity and molecules or only molecules) to the refinery.
Overall, through these projects, K&M’s work has helped to raise awareness of the potential for natural gas to contribute to the energy security and economic development of West Africa. K&M Advisors is committed to supporting natural gas development in West Africa and will continue to work with governments, businesses, and financial institutions to help realize the region’s gas potential.