Africa’s natural gas and LNG potential plays a crucial role in shaping the continent’s energy future. The African Energy Chamber’s (AEC) State of African Energy 2025 Outlook Report highlights the significant impact of Africa’s gas reserves, projecting a fourfold increase in LNG exports by 2040. Gas-to-power initiatives are essential in addressing the continent’s electricity access challenges while providing a means to monetize underutilized gas resources. With the right investments and collaborative efforts, Africa is well-positioned to unleash the full potential of its gas sector, driving economic growth and ensuring energy security.
Major Projects Driving Africa’s Gas Potential
Numerous large-scale projects are propelling Africa’s gas potential, with a particular focus on LNG exports as a key component of the continent’s energy landscape. The AEC’s report predicts that Africa has the capacity to boost its LNG export capacity nearly fourfold by 2040, reaching an estimated 175 million tons of LNG per year. Presently, Africa’s LNG exports hover around 40 million tons, indicating significant room for expansion.
Mozambique stands out as a major catalyst for the continent’s LNG sector growth, with the potential to achieve LNG export capacity of up to 50 million tons by 2040. However, security concerns, especially in onshore areas, have tempered this potential, leading companies to explore smaller offshore floating LNG (FLNG) solutions. For instance, Eni’s Coral North FLNG project in Mozambique is being developed as an offshore solution, albeit on a smaller scale compared to onshore alternatives. Other noteworthy projects include substantial advancements in Senegal and Mauritania, with developments like the Greater Tortue Ahmeyim (GTA) project, co-led by bp and international partners, expected to play a pivotal role in Africa’s LNG growth, particularly as it progresses to its second phase.
Risk Factors and Investment Outlook
While realizing Africa’s gas and LNG potential poses challenges, there are ample opportunities for growth. The report underscores the importance of developing both domestic and export markets to fully exploit the continent’s gas resources. Large-scale pipeline projects such as the West African Gas Pipeline and Trans-Saharan Gas Pipeline could significantly contribute to linking African gas to additional markets, including Europe. Despite facing financing and political complexities, successful collaboration and strategic investments can pave the way for progress, unlocking new economic prospects and expanding Africa’s energy reach.
Security emerges as a critical risk factor, especially in regions like Mozambique where insurgencies have disrupted major projects. Offshore FLNG projects offer a more flexible and secure alternative, albeit with higher capital costs and reduced production capacity compared to onshore facilities.
AEW 2025 to Highlight Growth Opportunities
Africa’s rising prominence in the global energy market, coupled with its proximity to key international markets, positions it as a vital player in the natural gas sector’s future. The Chamber’s report emphasizes that Africa’s gas potential can be fully realized through strategic investments, de-risking strategies, enhanced regulatory frameworks, and increased collaboration among governments, industry stakeholders, and financiers.
This year’s African Energy Week (AEW): Invest in African Energies conference serves as a crucial platform for addressing challenges and opportunities within Africa’s gas and LNG sector, as well as discussing strategies for unlocking Africa’s complete energy potential. With investments in gas and LNG projects on the rise, AEW 2025 presents a strategic opportunity to showcase the continent’s progress, identify investment gaps, and foster collaboration between governments and the private sector to mitigate risks.
AEW: Invest in African Energies has become the preferred platform for project operators, financiers, technology providers, and government officials, emerging as the official hub for signing deals in African energy. For more information about this exciting event, visit www.AECWeek.com.
In conclusion, Africa’s gas and LNG potential holds immense promise for driving economic growth, ensuring energy security, and positioning the continent as a key player in the global energy landscape. Through strategic investments, collaboration, and innovation, Africa is poised to unlock its full energy potential, transforming the future of the continent’s energy sector.
