Cape Town, South Africa — 21 February 2013 – Namibia’s economic growth potential lies in the expansion of its mines “’ particularly uranium “’ as well as an increased need for energy independence, and the discovery of oil and gas.
New analysis from Frost & Sullivan’s “The Future of Namibia and Energy” finds that the Namibian government currently imports over half of its total electricity needs. The discovery of the Kudu gas field and anticipated oil resources could help the country achieve greater energy self- sufficiency and reduce its dependence on imports.
“A breakthrough in the oil and gas sector in Namibia, which is relatively under-explored, holds enormous potential for the country,” noted the company’s energy & environmental research analyst Muneera Salie. “If these resources are proven to exist, it could result in the country becoming one of the richest in Africa in terms of GDP per capita within the next five to ten years.”
Rapid growth of the Namibian oil and gas sector is expected over the next five years, with the exploration of 6 to 8 new wells commencing within two years. It is set to aid in job creation and improves the general state of the nation.
At the same time, development and production from the Kudu gas field will be driven through the expansion of the country’s export market, as well as the planned production of gas fired, combined cycle power plants in the region.
Economic growth will also be boosted by the expansion of Namibia’s mines, particularly that of uranium mines, as well as the production that is expected to occur from new mines, the study points out. Mine expansion should trigger the need for more electricity generation, encouraging growth in this sector.
While these are positive signs for Namibia, major challenges persist. Namibia is in urgent need of a new base-load power generation facility by 2016. However, delays are usually common when securing finance for large projects such as this.
“A base load facility is expected to be commissioned within the next five years,” concluded Salie. “Tried and tested technologies in the form of power generation from fossil fuels are likely to be used, as these projects can be fast-tracked and would obtain finance more easily than renewable energy projects, even though these are favoured.”
Source: Frost and Sullivan. For more information, click here.