Rabat – As sanctions against Russia escalate, Europe is now turning to Africa to secure gas supplies and minimize its energy dependency on Russia.
Africa will likely reach peak gas production capacity by 2030 at 470 billion cubic meters (Bcm), 75% of Russia’s 2022 production capacity, according to a report from Rystad Energy research quoted by OilPrice.
Factoring in the potential delays in gas projects development, the continent will still boost its gas output from 260 Bcm this year to as much as 335 Bcm in 2030, OilPrice reported. In the event that oil and gas operators decide to scale operations, Africa’s short and mid-term gas output will exceed the aforementioned estimates, the report noted.
Russia is a major gas supplier to Europe, accounting for 62% of its gas imports in the past 10 years. But Africa has also maintained a consistent presence on the list of Europe’s gas suppliers, with gas exports leveraging 18% over the same period.
Despite Africa’s high potential as a future energy supplier, doing business on much of the continent remains associated with a high level of risk due to high development costs and restricted access to financing among other issues, the report detailed.
However, rising global demand for energy is pushing international energy companies to reconsider African projects.
“The geopolitical situation in Europe is changing the landscape for risk globally. While LNG flows from the US are substantial, demand is much higher,” Siva Prasad, senior analyst at Rystad Energy told OilPrice.
“Asian and European importers will need to consider African priorities as they develop projects, as many African producers are focusing on supplying energy locally as well as to intra-African markets along with catering to global markets,” he added.
The expert further explained that “existing pipeline infrastructure from Northern Africa to Europe and historical LNG supply relationships make Africa a strong alternative for European markets, post the ban on Russian imports.”
Existing pipelines connecting Africa to Europe pose a significant advantage for future energy ventures, OilPrice’s report pointed out.
In addition, negotiations are ongoing for the Trans Saharan Gas Pipeline (TSGP) linking Southern Nigeria to Algeria.
Another promising gas project is the offshore Nigeria Morocco Gas Pipeline (NMGP), which has gained traction in recent months.
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