A new African Development Bank (AfDB) study into the prospects for shale gas in Africa concludes that several countries have potentially viable shale-gas deposits, but urges governments to weigh the most advantageous way of proceeding before embarking on the full-scale exploration and development of the resources.

The study notes that, if developed, the shale gas reserves could lower gas prices, reduce greenhouse-gas emissions, particularly in South Africa whose energy mix is currently dominated by coal, and offer substantial economic benefits to producer countries.

But exploitation will also present substantial environmental challenges, including the use of large amounts of water, as well as the potential for water contamination, increased seismic activity and the venting and flaring of associated gas.

It reviews resource estimates that have been made for shale gas deposits in Algeria, Libya, Tunisia, Morocco, Mauritania, South Africa and the Western Sahara and highlights that there is also potential in other countries for which information is currently not available.

In the foreword to the study, which is titled ‘Shale Gas and its Implications for Africa’, AfDB president Donald Kaberuka says the bank is willing to support these countries and any others with shale gas prospects.