The African Coalition for Trade & Investment in Natural Gas (ACTING) is forecasting a huge surge in the consumption and production of natural gas by Africa on the back of new LNG projects and strong policy support for natural gas consumption across industries, transport and power.
ACTING in its inaugural report on the continent’s natural gas titled State of Play: African Gas, stated Africa will witness increase localization and regionalization of LNG trade on the back of African Continental Free Trade Agreement (AfCFTA) and competitive gas prices.
ACTING in the report, noted it expects a 55% growth in grid-connected gas-to-power generation by 2025 on the back of greenfield and brownfield projects and the conversation of coal and diesel power plants to gas in countries like Senegal and South Africa.
The West African region is also expected to see the biggest gas-to-power capacity addition by 2025, with at least 750 MW in Senegal, 643 MW in Côte d’Ivoire, 450 MW in Nigeria, 200 MW in Ghana, 150 MW in Benin and 65 MW in Togo.
The ACTING report highlights that the continent remains one the lowest consumer of gas globally. Low gas penetration rates in sub-Saharan Africa contrast with the vast amount of natural gas reserves found onshore and offshore from Senegal to Mozambique and whose development could lift millions out of poverty and provide the resource the continent needs to industrialise.
It also showcases true success stories in domestic gas monetization in Côte d’Ivoire, Cameroon and Tanzania, and reveals the true diversity of African gas experiences with associated and non-associated gas, LNG, LPG, methane, coal-bed methane, helium and hydrogen.
