The expanding oil and gas, and renewables sector, presents a myriad of opportunities for the logistics industry.“We are constantly creating strategic partnerships with local governments, communities, and other stakeholders in Africa to ensure mutually beneficial relationships, sustainable development, and socio-economic growth for these sectors,” says Dinesh Balgobind, director at ICA Bulk Logistics. “Environmental sustainability has become critically important and reducing the carbon footprint a priority. This has seen an increase in investment in renewable energy solutions.”Balgobind, who has recently returned from East Africa, highlighted that gas was rapidly gaining traction as a prominent commodity in the region.“One of the notable developments is in Tanzania where the discovery of substantial offshore natural gas fields is taking place. The most significant discovery is the deepwater Block 1 gas field, known as Tanzania Liquefied Natural Gas (TLNG) project. It is estimated to hold around 57 trillion cubic feet (tcf ) of natural gas reserves, making it one of the largest discoveries in East Africa.”Balgobind said the development of this project involved building onshore and offshore infrastructure, including drilling wells, constructing pipelines, and establishing liquefaction plants. “The project has the potential to bring significant economic benefits to Tanzania and the region, including job creation, increased revenue from gas exports, and the development of supporting infrastructure.”With natural gas gaining prominence as a cleaner and more environmentally friendly energy source compared to oil and coal, many African countries are investing in natural gas infrastructure, including pipelines and liquefied natural gas (LNG) projects. This trend is driven by the desire to monetise existing gas reserves and meet the increasing demand for cleaner energy. Renewable energy projects such as solar, wind, and hydroelectric power are also on the rise in Africa. These include the development of new infrastructure and the expansion of existing renewable energy facilities.“This is good news for logistics service providers operating in Africa,” Balgobind told Freight News. “As the adoption of renewable energy technologies grows, there is an increased demand for equipment such as solar panels, wind turbines, and batteries. As more oil and gas projects take off, there is increased demand for project cargo. All of this equipment needs to be manufactured, transported, and installed, leading to increased logistics requirements.”He said the biggest risk on the continent was still political instability in some regions, creating uncertainty for investors and hampering development. Issues such as corruption, conf licts and frequent changes in regulatory policies had the potential to negatively impact operations.
