Sat. Apr 5th, 2025

Amid global pressures to curb emissions, Africa’s burgeoning energy projects are poised to benefit from sustained demand for natural gas, which analysts at Wood Mackenzie describe as a “crucial bridge in the energy transition.”

Despite the growing push for renewable energy alternatives, demand for natural gas in key markets such as Asia and Europe is expected to continue expanding. Major LNG export projects currently underway or in the planning stages across Africa include large-scale developments off the coasts of Mozambique, Tanzania, Senegal, and Mauritania.

According to Wood Mackenzie’s report, The Bridge: Natural Gas’s Crucial Role as a Transitional Energy Source, natural gas demand has surged by 80% over the last 25 years, now fulfilling nearly a quarter of global energy needs.

“Its success stems from the abundance of global reserves, low production costs, ease of storage and transportation, and relative environmental advantages,” said Massimo Di Odoardo, Vice President of Gas and LNG Research at Wood Mackenzie.

While electrification efforts continue to expand through renewable sources, the pace remains insufficient to meet immediate energy needs. Moreover, emerging low-carbon technologies like hydrogen are not yet widely adopted enough to enable a full transition to net-zero emissions by 2050. Given that coal still accounts for 30% of global energy consumption, shifting towards natural gas as an interim solution presents a compelling alternative.

Natural gas emits only half the carbon dioxide of coal and 70% of oil when burned, significantly reducing air pollution and making it the cleanest fossil fuel available.

Di Odoardo added, “In China and India, gas demand is projected to grow by almost 100 bcm through 2050, particularly in the power sector.”

Currently, Africa’s primary gas-producing nations include Algeria, Egypt, Nigeria, and Libya. However, the next decade is expected to witness the emergence of new exporters, including Mozambique and Tanzania on the eastern coast with direct access to Asian markets, as well as Senegal and Mauritania on the western coast, strategically positioned to serve European buyers.

In January 2025, BP announced the commencement of gas production from its Greater Tortue Ahmeyim (GTA) Phase 1 project off the coasts of Senegal and Mauritania. This development forms part of a 2.3 million tonnes per annum (mtpa) LNG export scheme. Additional gas production is anticipated from established producers such as Nigeria, Congo, Gabon, and Equatorial Guinea.

While Africa’s LNG projects will continue to face pricing competition from global players like Qatar, the U.S., and Australia, diversification of supply sources remains crucial for international gas buyers. Additionally, domestic markets are beginning to emerge, with South Africa actively exploring LNG import options at its proposed Richards Bay terminal.

By Editor

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