Africa’s Natural Gas Sector Emerges as Key Player in Global Energy Transition

As the world accelerates its shift toward cleaner energy sources, natural gas is gaining prominence as a critical component of Africa’s energy transition. With approximately 6% of the world’s natural gas reserves, the continent is poised to become a significant contributor to the global liquefied natural gas (LNG) market by 2030. This growth is anchored by major projects in Mozambique, Nigeria, Senegal, and Mauritania, positioning Africa strategically to meet rising LNG demand, especially from Europe and Asia, where consumption is expected to grow steadily with a CAGR of 1.5% through 2030.

Renewed Investor Confidence and Exploration Activity

Recent developments highlight renewed investor confidence in Africa’s upstream natural gas potential. Notably, Austrian energy firm OMV has resumed exploration activities in Libya’s Sirte Basin, partnering with the National Oil Corporation of Libya. OMV has recently spudded the ESSAR well in Block C103, signaling a focused effort on unlocking reserves near existing production infrastructure. This infrastructure-led campaign underscores the strategic approach to enhancing production efficiency and resource monetization in Libya.

OMV’s leadership will actively participate in the upcoming African Energy Week (AEW): Invest in African Energies 2025 conference, slated for September 29 to October 3 in Cape Town. Berislav Gašo, OMV’s Executive Vice President, is scheduled to join NJ Ayuk, Executive Chairman of the African Energy Chamber, for a fireside chat exploring partnership models, cross-border collaboration, and strategies to boost investment and technical capacity in Africa’s natural gas sector.

African Energy Week: Hub for Deals and Strategic Partnerships

AEW has become the premier platform for stakeholders in African energy, including project developers, financiers, technology providers, and government officials. It is recognized as the official venue for deal-making in African energy, providing unparalleled networking and investment opportunities. For more information, visit www.AECWeek.com.

North Africa: A Growing Natural Gas Powerhouse

North African countries are rapidly advancing their natural gas ambitions with substantial projects and production targets:

• Libya is expanding gas output with initiatives such as the Structures A&E and Bouri Gas Utilization projects, aiming to optimize existing fields and infrastructure.

• Algeria targets an ambitious production rate of 200 billion cubic meters annually by 2027, leveraging its vast reserves and export infrastructure.

• Egypt continues to ramp up production through a new licensing round and ongoing development of the giant Zohr gas field, Africa’s largest offshore gas discovery.

• Morocco is enhancing regional connectivity and supply security with the Nigeria-Morocco Gas Pipeline project, facilitating cross-border energy trade.

Saudi Arabia’s Strategic Engagement with Africa’s Gas Sector

Saudi Arabia is emerging as a pivotal international partner in Africa’s natural gas development, integrating gas projects into its broader energy diplomacy and economic strategy. Through state-owned Saudi Aramco, Saudi Arabia is expanding technical cooperation with African national oil companies, supporting exploration, production, and gas monetization efforts.

Beyond upstream activities, Saudi Arabia is emphasizing infrastructure development and downstream collaboration, solidifying its position as a long-term stakeholder in Africa’s energy future. Complementing this engagement, a $41 billion funding package targeted at sub-Saharan Africa aims to accelerate gas-related projects, enhance energy access, and stimulate industrial growth across the region.

Unlocking Africa’s Gas Potential Through Strategic Partnerships

NJ Ayuk, Executive Chairman of the African Energy Chamber, highlighted the transformative impact of international collaboration: "International engagement in Africa’s natural gas sector is fast becoming a game-changer for the continent. By investing in infrastructure, exploration, and production, regional and global players are strengthening Africa’s position in the global energy market. This kind of strategic partnership is exactly what the continent needs to fully monetize its natural gas potential."

The Road Ahead: Africa’s Role in the Global Energy Mix

Africa’s natural gas sector stands at a pivotal crossroads, balancing energy security, economic growth, and environmental sustainability. By leveraging its rich reserves and fostering strategic partnerships with global energy leaders, the continent is not only poised to meet growing global LNG demand but also to power its own industrialization and development ambitions.

With major investments underway, enhanced regional cooperation, and a supportive international ecosystem, Africa’s natural gas industry is shaping up to be a cornerstone of the global energy transition in the coming decades.