A just transition? The role of natural gas in the transition and alleviation of energy poverty in Africa
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In this discussion, Oliver Abel Smith, a partner in the Financial Markets Products Group at Fieldfisher, interviews Nigel Penney, Chief Financial Officer of Aminex PLC, about the company's operations in Tanzania and its role in Africa's broader energy transition.
Nigel Penney provides background on his tenure as CFO at Aminex, a company that's been operating in Tanzania for over 20 years. He discusses the significant challenges African nations face in aligning with the global shift towards low-carbon energy, primarily due to financial and infrastructural limitations. He underscores the importance of natural gas as a bridge fuel in Tanzania, which supports economic growth and meets energy needs.
The conversation highlights the need for reliable, lower-carbon energy sources like natural gas, which can replace more harmful fuels such as charcoal and wood. Nigel describes how natural gas can facilitate industrial projects, exemplified by the upcoming large fertiliser plant in the Linde region, a development expected to transform Tanzania into a regional fertiliser hub.
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Subscribe nowEnvironmental, Social, and Governance (ESG) considerations are a significant focus. Nigel emphasises that Aminex's ESG principles are deeply integrated into the company's operations. This includes responsible development and proactive community engagement to understand and address local needs, ensuring initiatives align with the true requirements of local communities.
Addressing operational and regulatory challenges in Tanzania, Nigel notes that while they are typical, Aminex handles these through engagement and openness. He highlights the importance of developing local skills and knowledge to support the country's long-term energy goals.
Nigel also discusses past support for education and healthcare projects and mentions plans for future community-focused initiatives, tied to the anticipated success of the Ntorya gas field.
