Nigeria, Algeria, and Egypt are expected to dominate the African Natural Gas and Liquefied Natural Gas (LNG) supply market from 2023 to 2027.
According to data from the African Energy Chamber in its August 2023 State of African Energy report, Africa’s 2023 natural gas supply is estimated at about 25.5 billion cubic feet (Bcf/d), a one percent year-on-year increase over 2022.
The report added that the long-term supply potential, in line with global potential, is expected to grow by 7 percent to 27.4 Bcf/d by 2025, by close to 30 percent to 32.8 Bcf/d, and by about 65 percent to 41.6 Bcf/d by 2035 over the 2023 levels.
Also, the long-term commercial flows from Africa, are also expected to stay relatively flat at 27 – 28 Bcf/d over the remainder of this decade and the next decade before starting to decline.
The report states: “Short-term natural gas supply from Africa is expected to see an increase from 2023 levels of 25.5 Bcf/d to just over 27 Bcf/d in 2024 and stay relatively flat at about 27 Bcf/d till 2027.
“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. Individually, the short-term output of these three countries is estimated to stay relatively flat.
“Algeria is expected to see a growth from 10 Bcf/d in 2023 to 11 Bcf/d by 2027. Egypt is expected to stay flat at 6.25 Bcf/d. Nigeria is expected to fluctuate marginally between 4.5 Bcf/d and 5.5 Bcf/d.”
The AEC report further highlighted that Africa has pledged greater focus on the monetization of discovered natural gas, thereby ensuring proper usage of gas as a transition fuel and also limiting emissions from rampant gas flaring.
Persecondnews recalls that in its efforts to deepen Nigeria’s domestic gas utilization and enhance gas export, the Nigerian National Petroleum Company Limited (NNPCL), had in April 2023, signed a Memorandum of Understanding (MoU) with a Norwegian company, Golar LNG (GLNG) to build a Floating Liquified Natural Gas (LNG) plant in Nigeria.
According to the Group CEO of NNPCL, Mele Kyari, the MoU with Golar LNG to build a floating liquefied natural gas plant in Nigeria will increase Nigeria’s domestic gas utilization and enhance gas export.
He said Golar LNG is one of the world’s largest independent owners and operators of marine-based LNG midstream infrastructure active in the liquefaction, transportation, and regasification of natural gas.