Imperative For US To Up African Energy Sector Investments-Saqara Energy’s Ann Norman

By Ajong Mbapndah L

Africa has the potential to solve the current geo-political problems the world is facing right now caused by the conflict in Ukraine, says Ann Norman CEO of Saqara Energy. With its vast gas resources, minerals, and agricultural capacity, Africa is in a good position to provide the world with what it needs at this point.

For this to happen, Africa needs to showcase to the world that they are stable and that they take rule of law seriously, says Ann Norman in an interview with PAV.

“Governments need to get out of the way and let capitalism rule. Let the private sector companies do what they do best, let the markets do what they do best, and let investors invest in the gas, the assets, let them use the money wisely to develop the fields, and everyone will win. Africa will see the resources develop, energy will come, power will be produced, investors will see returns, and governments too will win,” Ms. Norman says.

While U.S companies may still be leery about committing fully to Africa, Ann Norman thinks that the dynamics of sheer need and the potential available call for stronger US presence and investments in the African energy sector. Norman who serves on the Board of Advisers of the African Energy Chamber thinks that a more robust US presence could make a difference in helping Africa meet some of its most acute energy challenges. 

Describing Africa as the investment world’s Wild West, Ann Norman says she anticipates that the participation from the US at the upcoming African Energy Week in Cape Town will be even more exceptional. While AEW 2022 was fantastic, interest and engagement with Africa is at an all-time high, and there is every reason to predict an even more robust participation at this years edition of the continent’s premier energy event from the USA, Ann Norman says.

You have been an actor on the African energy scene for over a decade now, what is your reading of its current state, what is working, where have you seen progress, and what is not working?

Ann Norman: Thank you for giving me this platform today, you are an important platform and voice in Africa. In the past decade, I have witnessed a lot in the African energy scene, some good, some great, some bad, some mediocre. What’s working? Gas development is booming – and rightly so. Not just Africa needs more gas, but now with the conflict in Ukraine, Europe is looking for more supplies. One thing we all shouted loudly in Europe and to Europe, and I’m going to take this opportunity to say, “I told you so,” about a decade ago, was that it was critical for them to look south for reliable gas partners.

May we get insights on the presence of U.S companies in the energy sector, what contributions are U.S firms making to help Africa change its energy fortunes?

Ann Norman: I’d love to see more US companies on the scene in Africa. In my opinion, they are still leery of the continent, and one can understand why with political instability and security issues in so many places.

US technology companies are playing an important role in this space, I’ve watched new technologies from US companies enter the scene from small scale gas capture equipment providers to new, large scale gas plant technologies. I’ve also watched the evolution of US modular refineries which have been a game changer, and I love watching that market flourish because it has a direct, positive impact on the local economies.

Mobile fractionation units that create LPG at the point of a gas flare site are however my favorite projects out there. This has a direct impact on so many things – the environment from both a CO2 elimination from the flare capture to LPG creation for domestic markets thus helping stop deforestation.

How do you make the case for more US firms to engage with Africa on the energy sector and to Africa, how do you make the case for the continent to prioritize partnership with US firms?

Ann Norman: US development banks and institutions have been quite bullish on supporting US investments into cleaner energy and distribution efforts into Africa. Loan guarantees from DFC and US Exim bank for instance can secure private sector money and de-risk project finance allowing US companies to make that leap without the risk. The World Bank and IFC have similar programs as well as the African development banks too. This is how we can use private sector money to de-risk this otherwise risky market place.

I’m a firm believer that the only way to sustainably create peace and stability in any country, not just Africa, is through capitalism – job creation. When people have jobs, when an economy is solid, security and peace quickly follow and remain. 

From your experience what policy recommendations do you think are needed for Africa to attract more investors in the energy sector?

Ann Norman: Yesterday I read President Tinubu is calling for investors to come to Nigeria to grow their critical gas sector. Indeed, he is correct in calling for this, but, in order for investors to flock to the continent, countries have to enact fiscal policies that will protect investments. And, they must finish what they started. Sticking to the Nigerian example, it’s no secret that Nigeria messed up the National Gas Flare Commercialization Plan (NGFCP). They took that well-constructed program clear through the RFP stage, and then never finished it, left investors hanging, AFTER they had sunk money into it, with no way to capture any return whatsoever. This is going to make it very hard for anyone to come back to Nigeria for a while and trust their investment money there with anything related to investments that are not strictly private sector.

Governments need to get out of the way and let capitalism rule. Let the private sector companies do what they do best, let the markets do what they do best, and let investors invest in the gas, the assets, let them use the money wisely to develop the fields, and everyone will win. Africa will see the resources develop, energy will come, power will be produced, investors will see returns, and, yes, governments too will win – they will realize tax revenues, if only they could get out of the way. I don’t say this critically either, I say this with all due respect to all the government leaders out there who may hear this or read this, I plead with you, please, stand back and let the private sector do what we know how to do best. Cut the red tape for us, and you’ll see we can make magic happen!

Based on your knowledge and experiences across the continent, may we know some of the countries where you see the kind of potential and opportunities you can easily pitch to US firms?

Ann Norman: It’s no secret I love gas flare down projects, so I’m going to stick mainly to those projects. What I like about them is they are fairly low risk, they don’t involve exploration, drilling and capital-intensive risks like that.  The countries I find interesting as a US investor myself and therefore opportunities I could easily pitch are currently in Egypt, Gabon, Angola, Cote d’Ivoire’s sector isn’t huge but lately there are a few things I am quite interested in pursuing there and yes, Nigeria. Nigeria has so much potential, and I am quite bullish now we have new leadership there. We should all run, not just walk to Naija with our cash, there is much to do there not just for Nigeria, but for the continent and the rest of the world.

What is your position on the fossil fuels debate, and do you think those calling for Africa to completely ditch fossils are oblivious to African challenges and realities?

Ann Norman: Look, it is an absolute naïve position to think we can abandon fossil fuels in the blink of an eye and keep the world going and have any quality of life anywhere. Do we need to come up with a plan to clean things up over the decades and alleviate climate change, absolutely .Can we do it tomorrow and just stop fossil fuel development and use, absolutely not. Hence the brilliance of these two words – “Energy Transition,” and, this transition is going to take decades. Not a decade, but decades. 

Permit me a mea culpa, and allow me to call out my compatriots. We Americans do much good in the world, but we also can be naïve. Regarding Africa, it is an absolute must to develop our gas assets there. The continent is so deficient in power that people are literally dying. For instance, let me throw some real statistics out here: According to the WHO South Sudan, Chad and Nigeria all have extremely high maternal mortality rates with 1223 deaths in South Sudan, followed by Chad with 1063 deaths and Nigeria with 1047 deaths per 100 000 live births in 2020. Hospitals run on electricity. Vaccines need refrigeration. How does one get power to support those things if not from natural gas? Solar is great while the sun shines, but the world does not yet have the battery capacity to sustain the time the sun isn’t shining, nor the lengthy rainy seasons much of Africa experiences. A baseload power fuel like natural gas is currently required to supplement the efforts of solar until new technologies are found, or battery minerals are supplied to meet the demand the world needs.

You are a member of the Board of Advisors at The Africa Energy Chamber, and the African Energy Week is coming up, what kind of participation are you expecting or anticipating from U.S?

Ann Norman: I expect that the participation from the US will be even more exceptional than it was last year, and last year was fantastic. We are now even further out from the end of the pandemic; travel restrictions are a thing of the past. I believe we will see a fantastic attendance. Interest and engagement in Africa is at an all-time high, and I for one intend to keep it that way. I have said it before, and I’ll keep saying it, Africa is the investment world’s Wild West. What I mean by that… I’m from Utah, a cowgirl, born and raised on a farm and ranch, a product of pioneers that heeded the clarion call in the 19th century to “go west young man!” and I will add women. Those brave people that did come to the then wild, wild west to eek out a living on virgin land, ranch, toil and labor, put in the hard work, invest not just their sweat and soul, but their hard-earned cash, it paid off. And, it has paid off for the generations of their family that came after them, like me. I’m really grateful to those ancestors of mine for doing that.

Well, this is where we are with Africa. It’s the only place left in the world where we still have this opportunity. It might be tough, it requires your hard work, sweat and your heart and soul, but it’s worth it. Not just for you, but for the generations that follow you. It’s for the people now. Millions of deserving people on this amazing continent deserve power, they deserve better, they deserve what I enjoy in the US. They deserve jobs that pay them well so they can provide what you and I can provide for our families, the same kinds of opportunities. How many Albert Einstein type of minds has humanity missed out on because we never allowed them an education because we as collective humanity have not cared that much? That must change, and whether you like it or not, energy is at the heart of that change.

Could you shed light on Saqara Energy that you have led for some two years now?

Ann Norman: Saqara Energy is focused on all the things I have mentioned just now. The development of energy on the continent of Africa. Over the past two years, our main focus has been flare down projects. Putting associated gas, wasted flares in stranded locations into useful production to produce power, LPG for domestic cooking fuels, condensates. And, in so doing, it cleans up the environment, it creates additional revenue for an oil producer on a wasted resource. It also often eliminates a fine for them as well, also therefore increasing revenue. For governments, it increases tax revenues on new products that come into markets. Those are wins across the board. These are difficult projects to execute.

It might sound simple, often times people think it is. If I had a dollar for every group I had initial meetings with who then tried to do these projects on their own, only to return to me a couple of years later, hat in hand asking for help, I’d be quite wealthy! These are complicated projects, technologically speaking, and financially speaking. Financing is difficult and complicated and add to that the fact that most are in risky banking markets. Saqara Energy has had success in this challenging space, and we would love to help any producer out there, NOC, IOC or private indigenous field owners. Give us a call.

Looking at global trends, geo-political dynamics, the potential that Africa has and its challenges, what gives you hope for its energy sector and what are your fears?

Ann Norman: Africa has the potential to solve the current geo-political problems the world is facing right now caused by the conflict in Ukraine. There is enough gas, minerals, and agricultural capacity to provide the world what we need. Europe is not far away. Many of us were screeching years ago telling everyone Nordstream 2 wasn’t the way to go, build out the pipeline capacity from Africa north. Nobody really listened. Well, we are all now shaking our heads saying we told you so, and it’s not very gratifying, is it? However, that is what gives me hope. The world is indeed looking at Africa now, and they do realize now in a real way Africa can provide what is necessary, however, this is also what worries me. Geo-politics everywhere. Europe’s geo-politics need no explanation of why they are worrisome. Africa needs to showcase to the world that they are stable, that they take rule of law seriously. With the recent wave of coup d’etats that have erupted, it seems like a trend that might continue.

The situation in Niger is particularly personal and heart breaking for me. I am an ardent supporter of President Bazoum. This year I began working on a project there. I have spent a good amount of time there, and I fell in love with that country. I have had the most incredible experience working with my colleagues at Sonidep, leadership at the Ministry of Petroleum, and the Presidency itself. It has been the country I have experienced the least amount of red tape, the most transparency, the most efficient and effective leadership, thorough and professional processes, even down to getting visas for travel. Now, nothing but chaos ensues. How can these people who make such chaos erupt believe that any investment will come to their country when they do things like this? They are not instilling confidence at all. Stability and transparency, rule of law, that is what instills confidence the leads to foreign direct investment.

When a coup d’etat occurs, that confidence takes a hit that is not easily recovered often times for decades. This is my fear for Africa. But, let me not end on that note. Stronger than fear is hope. And the good people of Africa, the millions of people that work hard, believe, do good, are kind, ethical, moral, who love their families just like me, those are the people I keep in my mind all of the time. To these people I say thank you, there are too many to name. They have been so kind to me, they are my friends, they are better people than I, and they prove that to me daily. So that is what drives me, if I can be half the person that all these good souls are, perhaps I will have accomplished something in my life. That is what the hope of Africa is – it’s people.