Why Gas Planning Should Start Early in Offshore Projects
Namibia’s burgeoning offshore oil discoveries hold the promise of significant energy potential for the country. However, industry leaders warn that the value of these discoveries hinges not just on extracting crude oil, but on how the associated gas is managed from day one. Tom Alweendo, Chief Executive of Alvenco Advisory, has been vocal about the need to treat gas as a strategic asset rather than an afterthought. His message is clear: early gas planning is essential for long-term project success, economic efficiency, and environmental responsibility.
From Oil to Gas: The Underlying Opportunity
Offshore oil plays rarely come alone; they are accompanied by associated gas that can be a byproduct of the reservoir. Properly planned gas handling can unlock additional value through power generation, reinjection for reservoir pressure maintenance, or even monetization through gas sales. In Namibia, where energy security and revenue diversification are national priorities, optimized gas utilization could transform a prospective oil boom into a multipronged energy advantage.
Risks of Delayed Gas Planning
Delaying gas planning can lead to inflated capital costs, safety risks, and regulatory bottlenecks. If gas is flared or burned off due to insufficient infrastructure, the country loses a crucial economic opportunity and increases greenhouse gas emissions. Early planning minimizes these risks by ensuring that gas handling facilities, pipelines, and processing plants are integrated into the project design from the outset.
Economic and Environmental Considerations
Strategic gas planning supports Namibia’s broader economic goals. By creating pathways for gas utilization—whether through local power generation, export-ready pipelines, or LNG opportunities—the sector can contribute to electricity reliability, industrial growth, and job creation. At the same time, responsible gas management aligns with environmental stewardship, helping to reduce flaring and improve overall project sustainability.
What Effective Gas Planning Looks Like
Experts advocate a holistic approach that begins at the front end of oil discovery campaigns. Key elements include:
- Integrated field development plans that specify gas handling capabilities alongside oil production.
- Feasible gas utilization options early in the project lifecycle, including reinjection, local power supply, and potential exports.
- Rigorous regulatory and market analysis to determine pricing, tariffs, and licensing for gas infrastructure.
- Risk management strategies that address storage, transport, and safety standards.
- Stakeholder engagement with government, local communities, and potential energy buyers to secure long-term commitments.
Role of Policy and Collaboration
Public policy plays a decisive role in enabling profitable gas strategies. Namibia’s regulators and policymakers must create clear frameworks for gas capture, processing, and distribution. Collaboration between oil majors, service providers, and local businesses can accelerate the development of gas infrastructure while ensuring domestic benefits are maximized.
Leadership Perspective: Alweendo’s Call to Action
Tom Alweendo emphasizes that gas should not be an afterthought but a cornerstone of offshore development plans. By advocating for proactive gas planning, he positions Namibia to harness value across generations. His approach reflects a broader industry trend toward integrated project design, where oil and gas decisions are aligned with national energy strategy, fiscal governance, and environmental objectives.
What This Means for Namibia’s Offshore Future
As exploration continues and potential reserves grow, the strategic steps taken now around gas planning could determine the pace, cost, and success of Namibia’s offshore projects. The country stands at a crossroads: build robust gas infrastructure now or risk missed opportunities and higher costs later. With thoughtful planning, Namibia can turn associated gas into a reliable economic engine while advancing sustainable energy goals.
Conclusion
Gas planning is more than a technical requirement; it is a strategic investment in Namibia’s energy security and economic resilience. With leaders like Tom Alweendo championing early and comprehensive gas handling strategies, the offshore sector can unlock additional value, deliver cleaner energy, and set a sustainable course for years to come.
