Congo+Natural+Gas

==China Likely To Start Investments In Congo-Brazzaville’s Natural Gas Sector In The Next Five Years Due To Presidential Agreements With The Chinese And The Proven Gas Reserves Despite Congo's Failure To Fully Utilize The Most Of Its Natural Gas==

It is likely China will start investments in Congo-Brazzaville’s natural gas sector in the next five years. The Chinese government has pledged assistance government and there are 3.2 trillion cubic feet (Tcf) within the country. Estimates from the EIA and IHS Global Insight state that the reserve’s are not large enough to justify large investments and that they are likely to decline in the future. In the past five years the Chinese have not invested in this sector and even though there are proven reserves, they are not substantial enough to draw Chinese attention away from other investments; however they are large enough for smaller scale projects that may interest the Chinese and to help meet their demand. Congo's failure to fully utilize the most of its natural gas affects their ability personal abilities; however it gives options to foreign investors, specifically the Chinese because of other involvement in the country.
 * Executive Summary: **

Despite having substantial natural gas reserves, Congo-Brazzaville failed to make the most of it. According to the Oil & Gas Journal Congo holds the fifth largest proven reserves of natural gas in Sub-Saharan Africa at 3.2 trillion cubic feet (Tcf). Other Gulf hydrocarbon powers such as Nigeria, Equatorial Guinea and Angola are developing a range of g as processing ventures while Congo continues to regard gas as of limited importance next to oil. According to IHS Global Insight, Congo-Brazzaville's reserves are probably not large enough to justify the const ruction of a large LNG facility in their own right; a more likely use for Congolese gas is a smaller processing facility or gas-fired power plant. According to the EIA, the country's gross natural gas production w as 334 billion cubic feet (Bcf) in 2011, although only 15 percent (51 Bcf) was marketed. A majority of the natural gas, 68 percent (228 Bcf), was reinjected to boost oil production while the remaining 17 percent (55 Bcf) was flared or vented. Due to the lack of gas infrastructure, only 41 Bcf of dry natural gas was domestically consumed.
 * Discussion: **

In March 2013 Chinese President Xi Jinping and his Congolese counterpart Denis Sassou Nguesso agreed that China will assist with economic and social development and in exchange Chinese enterprises will participate in the construction of special economic zones. China's opportunity lies within the Congo's lack of gas infrastructure; the amount of gas not marketed is substantial, as shown in the graph to the side. If China does invest in the natural gas sector of Congo then it will most likely occur through the infrastructure investments in small scale gas projects because that is where Congo lacks.

** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson