Latest news with #energyMinistry
Zawya
07-07-2025
- Business
- Zawya
Ethiopia looks to natural gas to fuel its growth
Ethiopia says it will start exporting natural gas, part of a turnaround plan for an economy weighed down by shortage of foreign currency. Prime Minister Abiy Ahmed told parliament on Thursday that his administration would begin its first-ever gas export 'in the near future,' which would mark a milestone in the nation's economic transformation. Dr Abiy said the country had previously attempted to explore and export natural gas during the tumultuous DERG regime and before, but none of those efforts came to fruition. Now, Ethiopia has partnered with new companies for gas exploration, he added.'Following the completion of the first phase, the second phase of the gas project will also be launched in due course,' he said. Dr Abiy's announcement comes after the country indicated in its Energy Outlook report of May that the government had cancelled the planned natural gas extraction in the Ogaden region, and a pipeline project to Djibouti for export as LNG, due to 'challenges in securing project financing and slow project implementation contributed to this decision.''This cancellation limits Ethiopia's ability to generate revenue from natural gas exports and diversify its energy sources. Use of domestic natural gas would increase CO2 emission, but could be a relevant option to balance generation in dry years and reduce the need for fertiliser imports,' the Water and Energy ministry said. According to the new report, Ethiopia is currently extracting coal for industrial use.'The future role of natural gas in Ethiopia's energy mix will depend on the feasibility of new extraction and distribution projects, alongside economic and geopolitical considerations,' the report says.'Natural gas could potentially be used to compensate for the missing generation from hydro in dry years,' the new report says. Ethiopia has significant oil and natural gas potential in the Ogaden Basin, especially Calub and Hilala fields. The Ministry of Mines wants to work with Ethiopian Electric Power to integrate natural gas into electricity generation. The country is dependent on imported petroleum products, with current costs in excess of $4 billion annually. The policy will focus on natural gas exploration and prioritise development of the sector to open the area for companies and to encourage investments. It relies on renewable energy sources for electricity, with hydropower contributing over 90 percent of the country's supply. Major projects such as the Grand Ethiopian Renaissance Dam (GERD), with a capacity of 5,150 MW, and the Koysha Hydroelectric Power Plant, with a capacity of 1,800 MW, are crucial for meeting the growing demand for electricity. The GERD is currently producing 2,350MW and is planned to reach full capacity within a year. In addition to hydropower, wind farms such as Adama and Aysha contribute to the national grid. The country also has significant untapped solar and geothermal potential. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Free Malaysia Today
09-05-2025
- Business
- Free Malaysia Today
Thailand bids to join Alaska gas project before tariff talks
Thailand is open to signing a long-term contract to import liquefied natural gas from Alaska annually. (EPA Images pic) BANGKOK : Thailand said it's interested in co-developing a massive gas pipeline project in Alaska backed by President Donald Trump, as the Southeast Asian nation explores ways to cut its US$46 billion trade surplus with the US before tariff talks. Thai officials discussed Bangkok's potential involvement in the US$44 billion Alaska venture – a long-delayed pipeline that will stretch across the state – through investments in gas exploration and production and related infrastructure with project officials, the energy ministry said in a statement yesterday. Thailand is also open to signing a long-term contract to import about 3-5 million tonnes of liquefied natural gas from Alaska annually, the ministry added. Trump's backing for the project has seen Asian LNG buyers like Japan, South Korea and Taiwan express interest in joining forces with the US developers. The Thai interest in the Alaska venture is seen as part of efforts to ramp up investments in the US to ward off the Trump administration's plan to impose a steep 36% tariff on the country's exports. Bangkok, which is preparing to start negotiations with Washington, has identified natural gas, petrochemical feedstock and farm commodities as US products that it will import more in order to help cut the trade gap. A stake in the Alaska project will also help net energy importer Thailand to lock in guaranteed supplies amid depleting gas reserves in the Gulf of Thailand. The decline in local output has pushed the country to increase LNG imports in recent years. Last year, natural gas accounted for 58% of Thailand's power generation mix. Domestic output only made up about 60% of the 4,500 million standard cubic feet per day that Thailand needed, with the rest being sourced through LNG imports and supplies from gas fields in Myanmar. Viable option With electric vehicles taking off and investments in artificial intelligence and power-hungry data centres likely to boost electricity demand, the Alaska project may be a 'viable future option' for affordable electricity, said Prasert Sinsukprasert, permanent-secretary at the energy ministry, who led a delegation to Alaska earlier this week. The delegation discussed LNG trade and investment opportunities with Alaska governor Mike Dunleavy and executives from state-run Alaska Gasline Development Corp and Glenfarne Group, which back the project. The Thai team also included executives of state-controlled energy firm PTT Pcl, the Electricity Generating Authority of Thailand and Electricity Generating Pcl – all licensed LNG shippers in Thailand. The companies have been instructed to further discuss with their US counterparts on potential import deals, the ministry said. Still, the Alaskan project faces massive hurdles, and hasn't yet secured any binding investments or purchase agreements despite some interest from governments in Asia that are looking for ways to head off Trump's threatened tariffs. The project has been proposed in various forms for decades. Unlike similar facilities on the US Gulf Coast, it would be massive in scale, requiring the construction of a pipeline stretching 1,287km. Governor Dunleavy has said that Trump's support for the project will ensure it gets completed.
