Nigeria, Algeria, and Egypt are predicted to dominate the African natural gas and liquefied natural gas supply market from 2023 to 2027.
According to The Times, data from the African Energy Chamber’s August 2023 State of African Energy report confirmed this.
The analysis estimates that Africa’s natural gas supply will be at 25.5 billion cubic feet per day (Bcf/d) in 2023, an increase of 1% from 2022.
While this is happening, it is anticipated that the long-term supply potential would increase over the levels of 2023 by 7% to 27.4 Bcf/d by 2025, by close to 30% to 32.8 Bcf/d, and by around 65% to 41.6 Bcf/d by 2035, in accordance with the worldwide potential.
Additionally, it is anticipated that over the course of this decade and the following decade, before beginning to fall, long-term commercial flows from Africa will remain comparatively constant at 27 to 28 Bcf/d.
“Short-term natural gas supply from Africa is anticipated to rise from levels of 25.5 Bcf/d in 2023 to little over 27 Bcf/d in 2024 and remain largely stable at about 27 Bcf/d through 2027.
“Algeria, Egypt, and Nigeria are anticipated to contribute the majority of the continent’s natural gas, accounting for an average of 80% of the continent’s total gas production. These three nations’ short-term output are expected to be largely flat on an individual basis.
“By 2027, Algeria is anticipated to expand from 10 Bcf/d to 11 Bcf/d. 6.25 Bcf/d is projected to remain Egypt’s average. Nigeria’s emissions are anticipated to vary slightly between 4.5 Bcf/d and 5.5 Bcf/d.
The AEC study also emphasized that Africa has promised to put more effort towards monetizing natural gas discoveries, guaranteeing proper use of gas as a transition fuel, and reducing emissions from widespread gas flaring. However, it pointed out that Nigeria’s “Decade of Gas” initiative, which was introduced in March 2021, has continued to be implemented at a sluggish pace.
Nigeria’s Decade of Gas is a government-led program that aims to use the country’s substantial gas reserves to spur economic expansion and development.
Nigeria’s “Decade of Gas” initiative has only performed poorly to date, at a pitiful 5%, compared to the 85% goal set by the federal government, two years after it was announced.
The June 2023 Statistical Review of Energy Report made note of Nigeria’s declining natural gas production, which peaked in 2022 at 40.4 billion cubic meters.
The country’s exports of liquefied natural gas, which reached 19.6 billion cubic meters in 2022, also fell.
