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By 2050, Africa is anticipated to increase its market share for natural gas

By February 15, 2023No Comments

A survey by the Gas Exporting Countries Forum (GECF) projects that by 2050, Africa would own a greater than 11% proportion of the world’s gas market, up from just 6% in 2021.

According to projections, production will rise from 260 billion cubic meters in 2021 to 585 billion cubic meters in 2050 as a result of governments making the most of their local energy resources.

As a result, after the Middle East, Africa will be responsible for the second-largest expansion in the world gas supply over that time.

GECF is an intergovernmental organization that provides a framework for exchanging experience and information among its 12 member countries and seven observer countries. From Africa, the report features Algeria, Egypt, Equatorial Guinea, Libya, Nigeria, Angola, and Mozambique.

According to the report, the demand for natural gas on the continent will rise by 82% by 2050, and gas will account for 30% of Africa’s energy mix. Gas, in conjunction with renewables, will be critical in driving energy access across the continent.

Besides Africa using natural gas to alleviate energy poverty on the continent, it will also be key to economic growth. “The narrative that Africa should not develop its natural resources, particularly natural gas, is misguided,” said Mohamed Hamel, the secretary general of GECF.

“A prosperous Africa will be more capable of protecting its environment. The right of Africa to develop its vast natural resources can be preserved, and its access to finance and technology can be facilitated,” he explained.

Africa’s population is expected to increase from 1.4 billion to 2.5 billion by 2050, increasing the demand for resources, among them energy.

With about 900 million people in need of clean cooking fuels and another 600 million in need of reliable electricity, natural gas will play a key role in alleviating energy poverty.

Increased investment in Africa’s rich gas reserves and the revival of liquefied natural gas (LNG), especially for exports, will facilitate the achievement of the projections.

It is estimated that African LNG export capacity will reach 199 million metric tons per annum for the period, with Mozambique, Nigeria, Mauritania, and Senegal driving this increase.

However, the lion’s share of the supply is expected to come from Nigeria and Mozambique, which contribute more than 63% of Africa’s natural gas output.

Already, active investments have been pitched in these countries, pointing to the potential the sector holds.

According to the report, midstream investment in the sector is expected to be driven by the new projects in Mozambique, Tanzania, and Mauritania. Nigeria, Egypt, and Senegal will also contribute critically to Africa’s sector thanks to the newly launched projects.

The report, according to Gabriel Lima, president of the GECF and minister of mines and hydrocarbons for Equatorial Guinea, is a positive sign for the industry. He said, specifically mentioning Africa, “The uncertainties have never been so great, and the difficulties have never been so profound.” The energy trilemma, on the other hand, is more obvious and crucial: how to guarantee a safe, affordable, and sustainable energy system in the short to long term.

Recently, floating LNG (FLNG) terminals were established in Nigeria, Mozambique, and the Republic of Congo to meet the growing demand as European nations scramble to obtain natural gas from Africa.