Cape town: Natural gas is set to play a critical role in shaping Africa’s energy future, as highlighted in the African Energy Chamber’s 2026 Outlook Report, “The State of African Energy.”
According to African Press Organization, the report projects a 60% increase in African demand for gas by 2050, with sub-Saharan Africa expected to lead the charge, holding over 70% of the continent’s remaining recoverable resources.
Currently, two-thirds of Africa’s gas production occurs in North Africa, with Algeria, Egypt, and Libya as the main producers. However, the report predicts a shift, with sub-Saharan Africa becoming a dominant player in future gas production, accounting for over 400 trillion cubic feet of recoverable gas resources. Nigeria, with its Decade of Gas initiative, is anticipated to spearhead this growth, followed by emerging producers like Mozambique, Tanzania, Senegal, Mauritania, and Angola.
The transformative potential of gas in Africa lies in two main avenues: exports and domestic industrializat
ion. In 2024, sub-Saharan Africa supplied 26.9 million metric tonnes of LNG, primarily to Asia and Europe. The report foresees a fourfold increase in sub-Saharan gas exports by 2050, highlighting the region’s strategic position to serve both Atlantic and Indian Ocean markets. Additionally, domestic market obligations tied to export projects are expected to boost local gas supply, facilitating initiatives like Senegal’s ambitious 3 gigawatts of gas-fired power by 2050.
Domestically, gas is set to drive industrial growth, power generation, and transportation. Countries like Nigeria, South Africa, and Mozambique have already seen significant increases in gas-fired power capacity. Moreover, there is a growing demand for gas-derived products, such as fertilizers and petrochemicals, which are essential for industrial applications.
Despite Africa’s abundant gas resources, several challenges hinder the continent’s full economic transformation potential. These include upstream economics, market access and offtake, i
nfrastructure development, and country risk/fiscal terms. To overcome these obstacles, the report emphasizes the need for government support, competitive pricing, long-term contracts, and stable regulatory frameworks.
In conclusion, the 2026 Outlook positions gas as Africa’s bridge fuel, offering a cleaner alternative to coal and oil while providing energy security and economic growth. The anticipated surge in non-associated gas production in sub-Saharan Africa holds promise for new industrial opportunities, job creation, and increased export revenues, provided the continent can navigate the complex dynamics of infrastructure and demand.