Introduction: The urgency of gas planning in Namibia’s offshore era
Namibia’s offshore oil discoveries hold significant promise for the country’s energy landscape. However, as Alvenco Advisory chief executive Tom Alweendo recently warned, associated gas should not be treated as an afterthought. If oil volumes are substantial, the gas produced alongside them warrants deliberate planning from the outset. A proactive gas strategy can turn a potential byproduct into a valuable asset, supporting export opportunities, domestic energy supply, and long-term economic resilience.
Why early gas planning matters
Associated gas is often sidelined in the rush to extract oil. Yet, neglecting gas can lead to missed revenue, stranded resources, and environmental concerns. Early gas planning helps authorities and operators avoid bottlenecks in processing, transport, and monetization. It also positions Namibia to participate in regional gas markets, attract investment, and meet growing energy demand with cleaner energy options.
Key components of an effective gas plan
A comprehensive gas plan should cover several interlinked elements to ensure the efficient use of discovered resources:
- Resource characterization: quantify volumes, quality (gas composition), and variability to inform processing needs.
- Infrastructure strategy: determine the best mix of onshore and offshore processing, pipelines, and export routes, balancing cost and reliability.
- Monetization path: explore options such as liquefied natural gas (LNG), domestic power generation, petrochemical use, or pipeline sales to regional markets.
- Regulatory and fiscal framework: establish clear licensing, pricing, and environmental guidelines to attract investors and ensure sustainable development.
- Environmental and social safeguards: design plans to minimize flaring, reduce emissions, and manage local community impacts.
- Timeline and governance: set milestones, accountability, and cross-agency coordination to align oil and gas development with national priorities.
Economic implications for Namibia
Effective gas planning can convert a potential vestige of oil extraction into a strategic economic lever. Monetizing gas through LNG or local power generation can diversify revenue streams, stabilize public finances, and create job opportunities across the supply chain. It also helps mitigate risks associated with volatile oil prices by adding a resilient, non-oil revenue source for the government and industry players.
Regulatory and policy considerations
For Namibia to capitalize on associated gas, a transparent regulatory environment is essential. Clear licensing terms, fiscal incentives, and robust environmental standards encourage investment while protecting national interests. International partners typically look for predictable policies, competitive return profiles, and assurance that gas resources will contribute to domestic energy security and regional trade.
Implementation steps for stakeholders
Building a viable gas plan requires collaboration among government agencies, oil companies, financiers, and local communities. Practical steps include:
- Establish a national gas master plan that aligns with the country’s development goals.
- Conduct a comprehensive gas feasibility study, including reserve estimates, processing options, and market prospects.
- Develop a staged infrastructure program to minimize upfront costs while reducing flaring and emissions.
- Set up a governance framework with clear milestones, performance indicators, and regular stakeholder dialogue.
- Engage with potential buyers and regional partners early to secure off-take agreements and financing.
Case for Namibia: a forward-looking energy strategy
Namibia’s strength lies in its ability to transform offshore discoveries into tangible energy and economic benefits. By prioritizing gas planning now, the country can avoid missed opportunities and accelerate the development of a resilient energy sector. The approach proposed by industry leaders, including Tom Alweando, emphasizes proactive planning, clear policy signals, and cross-sector collaboration as the pathway to offshore success.
Conclusion
Associated gas from Namibia’s offshore oil projects should be part of the strategic planning process from day one. A well-structured gas plan can unlock value, reduce environmental impact, and strengthen energy security for years to come. Stakeholders who adopt early, coordinated action will be best positioned to harness the full potential of Namibia’s offshore resources.
