Africa’s natural gas upstream sector is projected to attract $934 billion in investments by 2050, driven by energy transition policies and technological advancements. This growth aligns with Africa’s strategy to expand its gas supply to the global market, expected to reach 502 billion cubic meters.
According to a report by the Gas Exporting Countries Forum (GECF), East, North, and West Africa will account for 80% of this investment, with Algeria, Egypt, Mozambique, and Nigeria leading the charge.
Africa remains an attractive destination for natural gas investment due to its abundant low-cost reserves, favorable geological conditions, and ongoing infrastructure development. Globally, GECF forecasts total investments in natural gas upstream projects to reach $10.4 trillion between 2023 and 2050, averaging $385 billion per year.
Increasing capital expenditure on high-cost assets, including yet-to-find resources and deepwater projects, alongside the integration of carbon capture and storage solutions, is driving up investment requirements for upstream projects.
Source: Energy Capital and Power
