Africa: The natural gas sleeping giant

Natural Gas Can Deliver Energy Justice and Climate Progress in Africa

Africa is a continent with significant natural gas reserves, and the exploration and production of natural gas play a crucial role in many African countries' economies. Several African nations are major producers and exporters of natural gas, while others are actively exploring and developing their gas resources.

Key points about Africa and natural gas include:

Major Gas Producers:

Nigeria: Nigeria is one of the largest natural gas producers in Africa. The country has substantial reserves and is a major exporter of liquefied natural gas (LNG). The Nigerian government has been promoting gas development to diversify its economy and reduce dependence on oil.

Algeria: Algeria has significant natural gas reserves and is a major exporter of both pipeline gas to Europe and LNG. The country has been a key player in the global gas market.

Egypt: Egypt has emerged as a notable natural gas producer in recent years. The discovery of large offshore gas fields, such as the Zohr field in the Mediterranean, has positioned Egypt as an important player in the regional gas market.

Gas for Domestic Use:

Many African countries are increasingly focusing on utilizing natural gas for domestic consumption, particularly for power generation. Gas-fired power plants are being developed to address energy needs and reduce reliance on more traditional and often polluting energy sources.

Gas Monetization and Infrastructure:

African countries are investing in the infrastructure necessary to extract, process, and transport natural gas. This includes pipelines, liquefaction facilities, and export terminals. The development of such infrastructure is essential for monetizing natural gas resources.

Regional Cooperation:

Some African regions are exploring opportunities for regional cooperation in the gas sector. For example, the East African region has seen collaboration in developing natural gas resources, with countries like Tanzania and Mozambique looking to export gas.

Challenges:

Despite the potential, there are challenges, including political and regulatory uncertainties, infrastructure limitations, and the need for substantial investments. Additionally, some countries face competition between using natural gas for export and prioritizing it for domestic energy needs.

Environmental Considerations:

As with any fossil fuel, the extraction and use of natural gas in Africa raise environmental considerations. Balancing economic development with environmental sustainability is a challenge that many African countries are addressing through policy frameworks and investments in cleaner technologies.

Overall, natural gas plays a vital role in Africa's energy landscape, and its strategic development can contribute to economic growth, energy security, and environmental sustainability in the region.

Natural gas fields in Africa

Africa is home to several significant natural gas fields that play a crucial role in the continent's energy production. As of my last knowledge update in January 2022, here are some notable natural gas fields in Africa:

Mozambique Rovuma Basin:

The Rovuma Basin, located off the coast of Mozambique, is known for its massive natural gas reserves. The basin contains several offshore gas fields, including the Golfinho-Atum and Coral South fields.

Niger Delta Basin (Nigeria):

The Niger Delta Basin, located in Nigeria, is one of the most prolific oil and gas-producing regions in Africa. It contains numerous natural gas fields, and Nigeria is a major exporter of liquefied natural gas (LNG).

Algerian Gas Fields:

Algeria is a significant natural gas producer in Africa. The country has various gas fields, including those in the Hassi R'Mel and Ahnet basins. Hassi R'Mel is one of the largest natural gas fields in Algeria.

Egyptian Natural Gas Fields:

Egypt has natural gas fields in the Mediterranean Sea, such as the Zohr field, which is one of the largest offshore gas fields in the world. Other fields in the Nile Delta region contribute to Egypt's status as a key player in the regional gas market.

Equatorial Guinea:

Equatorial Guinea, located in West Central Africa, has natural gas fields that contribute to its hydrocarbon production. The Alba field is one of the prominent gas fields in the region.

Tanzania and Kenya:

Offshore gas discoveries have been made in the coastal areas of Tanzania and Kenya. The discoveries, such as the Rovuma Basin (Tanzania) and Block L9 (Kenya), indicate significant natural gas potential in the East African region.

It's important to note that the status of natural gas fields can change over time due to exploration activities, new discoveries, and developments in the energy industry. For the most current and specific information, it's recommended to refer to recent industry reports, government publications, and updates from energy companies operating in the region.

to exacerbate existing constraints, Africa’s rapidly growing population is putting additional pressure on the system. Energy demand is far outpacing the electrification rate—and this challenge is going to exponentially increase in coming years without significant intervention. The continent’s 1.4 billion population is forecasted to reach nearly 2.5 billion by 2050. By then, five of the eight most populous countries in the world will be in Africa and Nigeria will surpass the United States to be the third largest country in the world. Nigeria already has the highest amount of energy poverty in the world, in absolute terms.

Modelling by the International Energy Agency shows that it is impossible to reach universal energy access in Africa without a mix of both renewable energy and natural gas. Renewable energy investment on the continent has been inadequate. Although global investment in renewable energy exceeded $3 trillion between 2010 and 2019, Africa only garnered 2.4 percent of it between 2010 and 2020. 

Thus, natural gas has a critical role to play in reducing the shortfall. The Kigali Communique was developed by a group of 10 African countries to articulate what a just and equitable energy transition in Africa looks like. One of the seven principles outlined in the communiqué is supporting Africa in the deployment of gas as a transition fuel, until it can be displaced by renewable energy.

While the European Union's 27 member countries agreed to call for a phase-out of unabated fossil fuels, cutting off future natural gas investment would be crippling for Africa’s economic, energy, and human development. It would leave Africa—which contributes just 3 percent of global carbon dioxide emissions—without another viable path to universal energy access. At COP28, World Bank president Ajay Banga noted that the distrust between advanced and developing countries is significant, when it comes to managing climate change—and forcing low and middle-income countries to eliminate the energy sources that enabled advanced economies to thrive, without providing the capital for cleaner energy sources, will only accelerate this distrust.

Africa’s current LNG projects

There are several big projects in progress or awaiting FID. These include Coral North FLNG, Rovuma LNG, Mozambique LNG, and Tanzania LNG in Southeast Africa. These projects will be instrumental in significantly increasing Africa’s LNG export capacity over the next decade.

Coral North FLNG

This proposed project would be a duplicate of the Coral South FLNG currently in operation. The north facility is expected to commence operations in 2027 and will be providing a capacity of 3.5 million tpy alongside the 3.5 million tpy already in place at Coral South.

Rovuma LNG

Rovuma LNG was initially going to be a two-train project with 7.6 million tpy capacity per train combining for 15.2 million tpy. However, the design was recently changed to use small modular units. It has become a 12-train project with 1.5 million tpy capacity per train but a higher total capacity of 18 million tpy. These smaller trains are becoming more popular for new LNG project proposals. It helps mitigate risk for stakeholders who do not have to commit to large projects from the beginning, but can instead commit to additions to the project as demand changes over time.

Rovuma LNG

we produce and process gas off the Mozambique coast

Key points about Rovuma LNG as of my last update:

Location: The Rovuma Basin is situated in the northern part of Mozambique, and it is believed to hold significant natural gas reserves.

Operators: The Rovuma LNG project is a joint venture, and major energy companies are involved in its development. The key players include ExxonMobil, Eni, and CNPC (China National Petroleum Corporation), among others.

Natural Gas Reserves: The Rovuma Basin is known for substantial natural gas discoveries, and the project aims to tap into these reserves for commercial use, primarily as LNG for export to global markets.

LNG Plant: The project involves the construction of facilities, including liquefaction plants, to process the extracted natural gas into liquefied form, which is more suitable for transportation and international trade.

Export: The LNG produced at the Rovuma LNG facility is expected to be exported to various markets worldwide, contributing to Mozambique's economic development and the global energy trade.

Keep in mind that the details of projects like Rovuma LNG can change over time due to factors such as market conditions, regulatory approvals, and project developments. Therefore, for the most up-to-date information, it's recommended to check the latest sources or news related to the Rovuma LNG project as of 2023.

The initiatives in support of local communities

In addition to producing LNG for international markets, Rovuma LNG will supply Mozambique with up to 17,000 tonnes of LPG per year, improving access to energy for local communities.  Other initiatives for the local communities include the routine and extraordinary maintenance of schools, training programmes and actions to support health in the Maputo, Pemba and Palma area.  The project will also contribute to the growth of the local workforce through targeted recruitment and activities to develop skills