According to a report by the Gas Exporting Countries Forum (GECF), Africa’s share of the global gas market will grow to more than 11 percent of all gas supplies by 2050, up from 6 percent in 2021.
Production is expected to increase from 260 billion cubic metres in 2021 to 585 billion cubic metres in 2050 when governments make the most of local energy resources.
Africa now has the world’s second-largest increase in gas supply during the same period, trailing only the Middle East.
The GECF is an intergovernmental organization that provides a framework for the exchange of experience and information among its 12 member states and seven observer states.
From Africa, the report is about Algeria, Egypt, Equatorial Guinea, Libya, Nigeria, Angola, and Mozambique.
Africa’s demand for natural gas is increasing.
According to the report, the demand for natural gas will increase by 82% by 2050 on the continent, and gas will make up 30% of Africa’s energy sources. Along with renewable energy sources, gas plays an important role in promoting energy availability across the continent.
In addition to Africa’s use of natural gas to alleviate the continent’s energy shortage, it is also key to economic growth.
“The narrative that Africa should not develop its natural resources, especially natural gas… is misleading,” said GECF Secretary General Mohamed Hamel.
“A strong Africa is better able to protect its environment.” He explained that Africa’s right to develop its vast natural resources can be preserved, facilitating access to finance and technology. Africa’s
The population is expected to grow from 1.4 billion to 2.5 billion by 2050, increasing demand for resources, including energy.
Natural gas becomes a key part of Africa’s energy mix.
About 900 million people need clean cooking fuels, and 600 million need reliable electricity, so natural gas plays a key role in alleviating fuel poverty.
Forecasts will be supported by increased investment in Africa’s abundant gas resources and LNG recovery, especially in exports.
Africa’s LNG export capacity is estimated to increase to 199 million metric tonnes per year, with Mozambique, Nigeria, Mauritania, and Senegal all increasing.
However, most supplies are expected to come from Nigeria and Mozambique, which account for more than 63 percent of Africa’s natural gas production.
Active investments have already been made in these countries, which show the potential of the sector.
According to the report, mid-stage investments in the sector are expected to lead to new projects in Mozambique, Tanzania, and Mauritania.
Nigeria, Egypt, and Senegal are also making critical contributions to the African sector through recently launched projects.
In total, GECF estimates Africa’s natural gas investment costs at more than $115 billion, or about 61% of the total expected by the 2030s.
“For this decade, 2021–30, $33 billion has been allocated; for the next decade, 2031–40; approximately $70 billion; and for 2041-2050, $12 billion.”
Gabriel Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons and also GECF president, sees the report as a positive sign for the sector.
“Uncertainty has never been greater, and the challenges are so deep,” he said, referring specifically to Africa.
“But the energy trilemma is more clear and decisive: how to ensure a safe, affordable, and sustainable energy system in the short and long term?”
Nigeria, Mozambique, and the Republic of Congo have all commissioned floating LNG terminals (FLNG) in the past three months to meet growing demand as European countries compete for natural gas from Africa.
Congo used two FLNG vessels with a total capacity of 3 million tonnes per year, while the Nigerian and Mozambican vessels have capacities of 1.2 million tonnes and 3.4 million tonnes per year.
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