Africa Accounts for 40% of New Gas Discoveries in Last Decade

Africa alone accounts for 40% of the new gas discoveries made in the course of the past decade, with almost half of the continent’s gas production destined for export.

Rabat – Africa alone accounts for 40% of the new gas discoveries made in the course of the past decade, with almost half of the continent’s gas production destined for export.

Despite the significant production capacity, the growth in natural gas consumption in Africa remains modest as a result of high prices, according to a recent report from the International Energy Agency (IEA).

The IEA report further specifies that North Africa accounts for close to 75% of the continent’s natural gas consumption, adding that the region has seen “robust” growth in consumption – – averaging 4.1% annually – – driven primarily by the enhanced access to domestic production and state-subsidized prices.

The growth in consumption of natural gas in North Africa is further triggered by the strong demand for electricity, as countries in the region possess some of the highest rates of electricity penetration on the continent, the report says.

As of July 2022, natural gas made up 55% of all energy sources used by North African countries, above the global average of 25% and Africa’s 30%, according to IEA data.

Gas consumption is set to slow to an average of 17% in the region over the course of the upcoming three years due to adverse international conditions, IEA projects.

In regards to Morocco, the report explains that the country is set to see limited growth in consumption as a result of supply constraints. Morocco uses natural gas primarily to power electricity plants.

The country historically relied on Algerian gas through a pipeline. The pipeline was discontinued in 2021, prompting the country to turn to Liquified Natural Gas (LNG), a concentrated form of gas made into a liquid form for easy transport.

Morocco’s decision to turn to LNG comes at a time when Europe is equally increasing its energy LNG imports in an attempt to phase out Russian gas, driving prices even higher, and deepening Morocco’s fiscal liability from energy imports. The country currently imports 90% of its energy needs.