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08 Aug 2024

African Gas to Offset Global Supply Gap

African Gas to Offset Global Supply Gap
As the global energy landscape undergoes transformation, African gas reserves are increasingly relevant in meeting growing liquefied natural gas (LNG) demand. This strategic position is underscored by the continent’s vast untapped gas reserves and expanded production and export infrastructure, both of which play a pivotal role in bridging global gas supply.

The Invest in African Energy Forum – taking place in Paris on May 13-14, 2025 – serves as a critical platform for attracting and channeling foreign investment into Africa’s gas and LNG sectors. Uniting African industry stakeholders with the global investment community, the forum will showcase leading investment opportunities in gas exploration, extraction and processing and associated infrastructure, as well as forge strategic partnerships central to unlocking Africa’s gas potential.

Global Gas and LNG Demand Landscape

Global demand for natural gas has been on an upward trajectory, driven by its cleaner-burning properties compared to coal and oil, which align with the global push towards lower carbon emissions. According to the International Energy Agency, global gas demand is projected to grow by 2.5% in 2024, though tight gas supplies continue to constrain demand growth. Demand is fueled in part by increasing consumption in Asia, particularly in China and India, where gas is seen as a transitional fuel towards renewable energy sources. In Europe – although overall gas demand is declining, due in part to the EU’s ambitious targets to reduce greenhouse gas emissions by 55% by 2030 – the need for diversified and secure energy sources remains.

Africa’s Gas Reserves and Production Capacity

Africa holds more than 620 trillion cubic feet (TCF) of natural gas, translating to about 8.5% of global proven reserves. Nigeria, Algeria, Egypt and Mozambique are the continent’s gas powerhouses, collectively accounting for the majority of these reserves. As of 2023, Nigeria, with 206 TCF of proven reserves, remains the largest gas producer in Africa and is a key supplier to markets like Spain, Portugal, France and Italy, primarily through its 22-million-ton-per-year Nigeria LNG plant.

Meanwhile, Mozambique is emerging as a key player on the global LNG stage following large-scale discoveries in the offshore Rovuma Basin. The TotalEnergies-led Mozambique LNG project is expected to produce up to 12.8 MTPA, while ExxonMobil spearheads the 15.2-MTPA Rovuma LNG project and Eni launches its second floating LNG facility in-country, set to boost Mozambique’s contributions to global supply.

Egypt, leveraging its strategic location and substantial gas discoveries in the Mediterranean, is also positioning itself as a regional gas hub. The Zohr field alone is estimated to hold around 30 TCF of gas. Egypt’s LNG facilities, Idku and Damietta, have a combined capacity of approximately 12.2 MTPA, enhancing its export capabilities to European markets. Neighboring Libya is also seeking to boost energy supplies to Europe on the back of an $8-billion gas production deal with Italy that will source gas from two offshore fields starting in 2026.

Supporting Global Supply and Demand

African gas projects are crucial in diversifying global gas supplies, enhancing energy security and stabilizing prices. Europe, seeking to reduce its dependence on Russian gas in light of geopolitical tensions, is increasingly looking to Africa for reliable LNG supplies. In 2023, Africa supplied around 15% of Europe’s LNG imports – with the lion’s share coming from Algeria and Nigeria – and countries like Egypt and Mozambique contributing smaller shares. The development of new LNG infrastructure, such as the Trans-Saharan Gas Pipeline, is set to further facilitate the flow of African gas to Europe.

Moreover, African LNG is crucial for meeting burgeoning demand in Asia. The Mozambique LNG project has secured long-term contracts with buyers in Japan, China and India, ensuring stable demand for its future output. Africa’s geographic location, especially for East African producers like Mozambique – as well as future exporters like Tanzania and South Africa – positions them favorably to serve Asian markets, reducing transportation costs and times compared to traditional suppliers in the Middle East and Australia.

With substantial reserves and ongoing development projects, Africa is well-positioned to meet growing global demand for gas as a transitional fuel. Strategic investments, coupled with effective management of geopolitical and infrastructural challenges, will be essential for Africa to fully capitalize on its gas potential, thereby supporting global energy security and economic growth.

IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

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