Sub-Saharan Africa to emerge as regional hub for natural gas reserves: Research and Markets

SSA RSub-Saharan Africa (SSA) offers tremendous potential for exploration, production, and utilisation of natural gas reserves. (Image source: Kurt Bauschardt/Flickr)Sub-Saharan Africa (SSA) is expected to be a regional hub for natural gas production and export with market potential in Asia-Pacific and Europe, according to Research and Markets, one of the leading market research reports around the world

In addition to LNG and pipeline exports, use of gas for power generation and domestic energy demands will drive the investment in natural gas infrastructure across economies, said the report.

The report has covered the current status of exploration, production and consumption activities across major natural gas projects in SSA. In addition, it also estimates the challenges and future investment opportunities in the overall gas value chain in Africa.

This provides an opportunity for global companies to provide services and solutions to enable major gas economies in SSA achieve sustainable social and economic development through use of gas as an alternative source of energy and source of electric power generation.

According to Research and Markets, uncertain regulatory policies and lack of suitable infrastructure pose major roadblocks for the regional socio-economic development. The report has suggested local governments to modify regulatory and fiscal policies, which are necessary to boost investor confidence in addition to meeting local socio-economic development objectives.

In addition, regional SSA oil and gas companies need to collaborate with international companies and implement industry’s best practices to overcome these challenges.

With growing contribution of renewable energy-based power generation, governments and public power utilities are now relying on gas-based power generation to meet daily power requirements. Growing demand for energy diversification within South Africa is anticipated to drive investments in shale gas exploration as well as gas transmission infrastructure for domestic utilisation across residential, industrial and power generation, noted the report.

Among the South African countries, Mozambique and Tanzania are likely to witness strong competition and investment in gas export and LNG infrastructures, the report further added.

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