Africa: The natural gas sleeping giant
Africa is a land full of promise, blessed with abundant resources and huge untapped potential in human capital. And when it comes to natural gas, its gas reserves in 2021 were estimated at 625.6 trillion ft3 which is nearly equivalent to that of the US. If Africa can properly develop their natural resources, they will be able to strengthen their position in the global energy supply chain and provide affordable energy not just for their people, but to the entire world. There are glimpses of this already.
According to the Gas Exporting Countries Forum, the demand for energy in Africa is expected to increase by 82% by 2050 and natural gas will account for 30% of their energy mix.
What countries are currently paving the way for increased natural gas production and what will be the state of the industry in Africa a few decades hence?
Africa's natural gas reserves
Currently, Nigeria has by far the largest gas reserves at 203 trillion ft3, which makes up 33% of the 2021 estimate of Africa’s total gas reserves. But with Algeria signing new gas exploration deals with Chevron, Exxon and TotalEnergies, they may soon catch up to Nigeria.
Algeria, Nigeria, and Egypt currently lead the pack in LNG exports having the highest export capacity on the continent. Algeria’s export capacity is 29.3 million tpy, Nigeria’s is 22.2 million tpy, and Egypt’s is 12.2 million tpy.
According to a report from the African Energy Chamber, “Algeria, Egypt, and Nigeria are expected to drive the majority of the natural gas supply with an average of 80% of the total African gas coming from these three countries.”