Positive fact is15 Sep 2010 15:00
although GAS discovery has increased world wide with shale gas in the US and East Europe etc, Africa needs energy to. African economies are well behind the developed world and are likely to grow at a faster rate. LNG is ideal for meeting their commercial and domestic energy needs. It can be bottled and sold to locals will be able to enter into "pay as you go" contracts, thus reducing the risk to the supplying company (SA had major issues with the Afrcians stealing electricity and refusing to pay etc.) IMO bottled LNG is better suited to west Africa which has a high birth rate, balloning population, high demand and underdeveloped infrastructure. Even mud huts can benefit from LNG (ie; Gas Stoves, Gas Lighting, Gas Boilers for washing) GASOL has an enormous domestic market on their doorstep. West African Power stations will benefit by switching from costly oil energy demand to the cheaper and more readilly available GAS. This is a good opportunity for GASOL and W Africa.
Extract from the June 2010 Strategic review:
The review concluded that the business opportunities presented by the use of gas to generate electricity within the West African region provided the best match for these criteria. The West African region has limited energy generation capacity per capita, and much of the current capacity is generated using relatively expensive oil products. The business opportunities come from the proximity of LNG resources in the Gulf of Guinea, where there is currently production capacity of approximately 25 million tons of LNG per annum, and a desire to increase the availability of electricity in the region.Gasol believes that, working with appropriate local and international partners, it can take advantage of these gas-to-power opportunities. In conjunction with AfGas, which is undertaking a study of the gas-to-power sector in West Africa, the Company will develop its strategy into a detailed business plan based, in part, on a small scale LNG solution to provide gas for new electricity generating capacity and, where possible, as an alternative fuel supply for existing oil-fired power stations. Gasol will also strengthen the Board with suitably experienced directors to reflect the new business area. The Company expects to make further announcements on these new developments to shareholders in the coming months.