LNG

By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

Africa is awakening to the power of its natural gas reserves, recognizing that among its many resources, natural gas offers a reliable and expedient track to economic growth and energy independence.

In our “State of African Energy: 2026 Outlook Report," the African Energy Chamber (AEC) details how the energy matrices of several gas-producing nations are pivoting from holding gas back as mainly an export product to building gas-centric domestic markets.

We regard this crossover not as some hopeful economic gamble, but as an essential step that all gas-producing nations on the continent must take if Africa is to benefit fully from its fossil fuel reserves and build up true self-reliance — without apology — just as the developed nations of the world did when it was their time.

As our report makes clear, domestic gas demand in Africa is ready to surge in the coming years, driven primarily by rising power needs. At this pivotal juncture, several African nations serve as prime case studies on how forward-looking investments in gas production can power whole industries, create new jobs, and stabilize grids in places where such improvements are desperately needed. Additionally, their stories exemplify how, amid a global energy transition, natural gas will serve as a bridge fuel that will power Africa into its own sustainable future.

Angola's Gas Renaissance: From Exports to Domestic Growth

In Angola, the oil and gas sector has seen its economic footprint shrink over the last decade amid declining output. Regardless, Angolan policymakers are well aware of the vast untapped value in the country's gas reserves, and recent industry moves reflect a commitment to realizing their potential.

Angola's journey into the global gas arena began with the construction of the Angola LNG liquefied natural gas (LNG) facility in 2008. This transformed associated gas (gas found in wells alongside crude oil), which was previously flared or reinjected, into exportable LNG — slashing upstream emissions in the process.

The raw natural gas (or feedstock) that is processed and liquefied to produce LNG initially came from key offshore blocks operated by ExxonMobil, Total, and Eni/BP, and was augmented later with gas from other blocks operated by Eni/BP and Chevron. Though half of the associated gas produced in Angola today is still reinjected into wells to maintain pressure and enhance oil recovery, recent progress — like the December 2024 achievement of first gas from the Sanha Lean Gas project — aims to boost supply volumes to the Angola LNG plant.

Angola has also begun to pivot toward non-associated gas fields in areas like the Lower Congo basin. The New Gas Consortium, a joint venture headed up by Azule Energy, is targeting numerous developments on multiple blocks that are expected to ramp up LNG capacity by 2026.

Post 2010 exploration in the southern Kwanza Basin offshore led to giant non-associated gas discoveries. While exciting, we at AEC are frustrated that those finds remain stranded due to a lack of gas export infrastructure in the area and the high cost and difficulty of deepwater drilling where they're located.

The Kaminho project, which targets condensate-rich pre-salt discoveries in the Cameia and Golfinho fields, is the first operation under development in block 20 of the Kwanza basin. Condensate/light oil recovery is the current priority at the site, and the extent of development will depend on the completion of the Kaminho floating production, storage, and offloading (FPSO) unit expected in 2028. As our report speculates, the possibility of a network between Kaminho and the appraisal programs at the Lontra, Zalophus, and Bicuar fields in the same region could encourage development of gas transport infrastructure leading to Angola LNG at Soyo or central Angola.

The Angolan government seeks to expand its pipeline network, which may involve gas evacuation from Cameia-Golfinho to the coastal point of Caboledo and an onshore pipeline to Luanda and Soyo to satisfy local demand, but project costs and the necessary transportation tariffs are holding up investment. Funding for such developments could potentially come from upstream firms or international banks with added tax breaks to make them viable.

In the long term, gas blowdown operations at maturing oil fields in the Congo Fan could also supply Angola LNG, leveraging existing midstream infrastructure for extended production into the 2030s.

Domestically, Angola is allocating more gas to power generation, with supplies feeding the 750-megawatt (MW) Soyo combined-cycle gas turbine (CCGT) plant that has been balancing hydropower fluctuations since its start in 2018. But ambitions extend further: the Angola Gas Master Plan calls for fertilizer (ammonia) and methanol facilities by 2030, which would spur a massive increase in gas demand. The proposed ammonia plant, set for construction in 2025 and operations by 2027, could demand up to 80 million cubic feet per day (MMcf/d) by 2035. Power expansions and conversions from oil will also drive demand, while opportunities in petrochemicals, direct gas exports, or mining electrification could diversify use.

By integrating LNG exports with local needs, Angola exemplifies how Africa can benefit from its resources while encouraging economic diversification and reducing dependence on imports.

Emerging LNG Exporters: Mauritania and Senegal's Shared Success

Shifting north, Mauritania and Senegal have stepped into the LNG scene. They became exporters in 2025 with the Greater Tortue Ahmeyim (GTA) project, a shared deepwater startup. This cross-border venture, featuring subsea infrastructure, an FPSO, and a floating LNG (FLNG) unit, has already generated approximately 3,000 local jobs and engaged roughly 300 domestic companies.

In 2015, developers overcame unitization hurdles through discussion, arriving at equitable terms, including domestic gas obligations. The project reached a final investment decision (FID) and agreed to a FLNG model, inspired by proven tanker conversions that have kept costs competitive on previous projects despite deepwater challenges.

Future expansions could double output through low-cost vessel upgrades; however, our report cautions that market oversupply risks and pledges from Senegal's new nationalist government to audit contracts may introduce additional risks.

Domestically, each country claims about 35 million standard cubic feet per day (MMscf/d) from the project — with delivery of Senegal's portion going to the Saint-Louis CCGT for power generation expected in 2026. Infrastructure initiatives, like gas networks and a proposed 366 MW power plant in Cap de Biches, aim to electrify close to 500,000 homes. Beyond power, other uses in petrochemicals and fertilizers could broaden the economic impacts, demonstrating how LNG can facilitate other industries.

Country-level initiatives like these align with the broader continental trends also outlined in our 2026 Outlook report.

Harnessing Regional Power Pools for Continental Integration

As of 2025, Africa's gross natural gas production is set to hit 331 billion cubic meters (bcm), led by the major producers: Algeria, Nigeria, and Egypt. Natural gas already powers 40% of the continent's electricity, with North Africa's 32% share doing most of the heavy lifting.

By 2050, gas-fired capacity could swell by more than 77 GW, yet its share of the total energy mix should stay around 40%. This demonstrates how gas can fill in as a transitional fuel during the expected growth in renewables, as well as its flexibility in supporting solar and wind during downtime.

Numerous nations are phasing out coal and oil — implementing gas-to-power in their national strategies while looking toward LNG imports or domestic sources. For instance, Nigeria has made gas-to-power a centerpiece of its master plan. South Africa's plans emphasize converting gas to electricity during its coal retirement. Senegal aims to have 3 GW of gas-to-power in place by 2050, and Ghana and Tanzania have similar gas-powered ambitions.

Though challenges like infrastructure gaps, import vulnerabilities, and environmental concerns will surely arise, we at the AEC are confident that targeted investments can overcome them.

These efforts are amplified by regional power pools — collaborations that allow neighboring countries to connect to each other's power grids. Five pools cover the continent:

1. Southern African Power Pool (SAPP) leads as the most mature and serves as a model for strong interconnections and competitive trading.
2. West African Power Pool (WAPP) has advanced cross-border links but grapples with regulatory and financial issues.
3. Eastern Africa Power Pool (EAPP) is also making progress on interconnections despite political hurdles.
4. Central African Power Pool (CAPP) is the furthest behind due to instability, limited infrastructure, and a lack of investment.
5. North African Power Pool (NAPP) has arguably the most advanced infrastructure but limited trade as it has more of a focus on integration with European markets.

The African Single Electricity Market, an effort to combine these five pools into a single continental power market, has sights on full integration by 2040. Although barriers like physical distances and technological and political compatibility issues are expected, finding ways around these barriers could further unlock the potential of gas by linking exporters to importers and boosting access and cooperation.

"The State of African Energy" spells it out: Natural gas is a catalyst for African prosperity, not merely a commodity on the market. By expanding LNG and domestic uses, nations can drive growth, cut emissions, and assert their energy independence. As a transitional fuel, it offers a comfortable route to an eventual conversion to renewables and can ensure that no African is left in the dark during the process.

Africa deserves to thrive on the wealth of its own resources, and the developments outlined in our latest report prove that outcome is possible.

"The State of African Energy: 2026 Outlook Report" is available for download. Visit https://apo-opa.co/3YH75ct to request your copy.