Gas

Africa's LNG sector poised for growth (IMAGE SOURCE: Adobe Stock)

Africa’s glut of new energy projects will find a ready global market, with natural gas demand set to grow in the coming years, despite industry pressures to curb emissions

Natural gas remains the “crucial bridge in the energy transition”, according to analysts at Wood Mackenzie, suggesting that demand in key markets like Asia and Europe will continue to expand even in the face of renewable alternatives.

Major gas export projects in the planning or underway in Africa include vast LNG export schemes off Mozambique, Tanzania, as well as Senegal and Mauritania. 

While the world is increasingly turning to renewables, natural gas remains fundamental to meeting global energy needs and reducing emissions in the medium term, Wood Mackenzie states in a report (The Bridge: Natural Gas's Crucial Role as a Transitional Energy Source).

“Gas demand has surged by 80% over the past 25 years, now meeting almost a quarter of the world's energy needs,” said Massimo Di Odoardo, ,vice president of gas and LNG research at Wood Mackenzie.

“Its success lies in the scale of global resources, low production costs, ease of storage and dispatch, and comparative environmental advantages.”

Electrification, increasingly delivered by renewable power sources, can only move so fast, the report states, while the adoption of emerging low-carbon technologies, such as hydrogen, is too slow to achieve net-zero emissions by 2050. 

With coal still accounting for 30% of the world’s energy needs, shifting to gas as a transition fuel is a compelling option, the report adds.

Gas produces only half the carbon dioxide (CO2) of coal and 70% of oil when burned, and generates considerably less pollution, making it the cleanest fossil fuel option.

“In China and India…gas demand is still expected to grow by almost 100 bcm through to 2050 in the power sector,” said Di Odoardo.

Africa’s gas production is currently concentrated in Algeria, Egypt, Nigeria and Libya.

But the next decade will be characterised by the emergence of a stream of new exporters, notably Mozambique and Tanzania on the eastern coast, with easy access to Asian markets, and Senegal and Mauritania on the western flank, closer to Europe. 

In January 2025, BP announced first gas production from its Greater Tortue Ahmeyim (GTA) Phase 1 project off Senegal and Mauritania, part of a 2.3 million tonnes per annum (mtpa) LNG export scheme. 

Other new gas production is also anticipated in traditional producer states like Nigeria, Congo, Gabon and Equatorial Guinea.

While Africa’s glut of projects will still face pricing pressure from competitors, notably Qatar in the Middle East, as well as the USA and Australia, diversification of supply remains important to global gas buyers.

These include the emergence of local buyers too, with South Africa currently exploring options to import LNG at a proposed site in Richards Bay.

Read more: 

FLNG Gimi receives feed gas from GTA project offshore Mauritania and Senegal

McDermott leads Mozambique LNG expansion

Can the East African Ruvuma Rufiji gas basin help quench growing global LNG demand?

The ESIA approval will help advance pilot production activities. (Image source: Adobe Stock)

Invictus Energy Limited has announced that the Zimbabwe Environmental Management Agency (EMA) has approved the Environmental Social Impact Assessment (ESIA) for pilot production activities at the Cabora Bassa Project

Pilot production activities include the Eureka Gold Mine Gas-to-power Project and incorporates gas extraction, liquefaction, and transport from the Mukuyu gas field, as well as future extraction operations.

The approval provides a clear pathway for the commercialisation of gas resources from the Cabora Bassa Basin. Following the approval, the Company was issued with License No: L10000062291.

Invictus Energy managing director Scott Macmillan said, “The ESIA approval is a critical milestone for Invictus, and paves the way for the future development of the Mukuyu gas field and broader exploration license areas. We will now finalise pilot production planning, secure all necessary permits, and advance discussions with additional potential offtake partners.

Invictus remains committed to unlocking Zimbabwe’s gas potential and delivering long-term value to shareholders and the broader region.

I look forward to providing further updates as we advance these pilot production activities.”

Gas-to-power projects

The ESIA approval is a pivotal step towards the commencement of pilot production activities, including the Eureka Gold Mine gas-to-power project. This project is being developed in collaboration with Dallaglio (owner of Eureka Mine) and Himoinsa SA (onsite power generation provider to Eureka), leveraging Mukuyu’s gas resources to supply reliable and cost-effective power to the mine.

Invictus and Himoinsa SA have been actively engaging with various technology providers for gas processing, liquefaction, and logistics solutions to feed into the feasibility study, which is progressing in tandem. These engagements are aimed at identifying optimal technologies to maximise efficiency and commercial viability for the pilot production phase and subsequent large-scale development.

Initial Eureka gas-to-power project feasibility study results indicate a high look-through gas price exceeding US$10/GJ for gas-fired power generation, based on current grid tariff rates. This underscores the economic viability of the Mukuyu gas field as a strategic energy source for power generation in Zimbabwe and the broader region.

The ESIA expands on the initial 2019 assessment, which was one of the most extensive environmental studies ever undertaken in Zimbabwe. The 2019 study included rigorous field surveys and baseline measurements across multiple disciplines, including hydrology, ecology, environmental and archaeological assessments, hydrogeological and soil surveys, as well as socioeconomic and community consultations. Key stakeholders engaged during the assessment process included local leaders, relevant government ministries, and government extension offices.

The ESIA approval reinforces Invictus Energy’s commitment to responsible and sustainable resource development, ensuring compliance with stringent environmental and social governance (ESG) standards while advancing Zimbabwe’s domestic energy security.

The new wells are expected to produce around 220bn cubic feet of gas and 7 million barrels of condensate. (Image source: bp)

bp has announced the start of production ahead of schedule from the second development phase of the Raven field, part of the West Nile Delta (WND) project offshore Egypt

The project involves the subsea tieback of additional Raven infill wells to its existing onshore infrastructure. The new wells are expected to produce around 220bn cubic feet of gas and 7mn barrels of condensate. bp, the operator, holds an 82.75% stake in the project, with Harbour Energy owning the remaining 17.25%.

The WND Gas Development comprises a series of gas condensate fields located offshore Egypt, within the North Alexandria and West Mediterranean Deepwater concessions. The Raven field, the final phase of the WND project, has been in production since early 2021. Its initial phase included the development of eight subsea wells, located up to 65 km offshore, at water depths ranging from 550 to 700 m.

Nader Zaki, bp regional president for the Middle East and North Africa, commented, "Since January 2024, we have not stopped drilling for one day. The focus of the Raven Infills project has been to fight natural decline and increase production while maximising our existing infrastructure to meet Egypt’s domestic market demand at pace. This further demonstrates bp’s commitment to investing in Egypt, enabled by the unparalleled support and partnership with the Ministry of Petroleum, EGPC, and EGAS."

Earlier this month, bp announced it had successfully completed the drilling activity at the “El King-2” exploration well in the North King Mariout Offshore Concession as part of its WND drilling campaign. The well encountered two prospective Messinian reservoirs at a measured depth of approximately 2,400 m. Zaki commented at the time that bp is well-positioned to fast-track the development of the discovery with its existing infrastructure, execution capabilities and strategic partnerships with the Ministry of Petroleum.

bp is a leading energy investor in Egypt, where it has been operating for almost 60 years, with an investment of more than US$35bn. With its partners, it currently produces around 70% of Egypt’s gas through its gas development projects in the West and East Nile Delta.

bp says it is committed to maximising production from existing resources, exploring new opportunities to add new resources, and leveraging its existing infrastructure to support gas supply that meets growing domestic demand while strengthening Egypt’s position as a key energy partner in the region.

In December, bp and XRG (ADNOC’s international energy investment company) announced they had formed a new joint venture Arcius Energy (51% bp, 49% XRG). The JV will initially focus on gas development in Egypt, and includes interests assigned by bp across two development concessions, as well as exploration agreements.

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Cutting emissions from flaring significantly reduces Algeria’s contribution to global warming. (Image source: Adobe Stock)

The implementation of advanced flare gas measurement systems unlocks numerous opportunities for Algeria that could enhance its economic and environmental standing

Among these benefits are:

• Capturing and exploiting flared gas could contribute an estimated US$3bn annually to Algeria’s economy, according to sources such as the World Bank and the International Energy Agency. This substantial revenue has the potential to support renewable energy projects, infrastructure development, and public services, creating both immediate and long-term benefits for the nation.

• Compliance with international sustainability standards ensures Algeria’s gas remains competitive in export markets, particularly Europe. Non-compliance with CBAM regulations could lead to higher tariffs, undermining Algeria’s position.

• Cutting emissions from flaring significantly reduces Algeria’s contribution to global warming. This is particularly vital for Algeria, which has already faced documented environmental challenges such as prolonged droughts, advancing desertification, and diminishing water resources. By addressing these environmental pressures, Algeria is not only safeguarding its natural ecosystems but also ensuring a more sustainable future for its population.

• Reducing flaring enhances local air quality by lowering exposure to pollutants. Studies by organisations such as the World Health Organization (WHO) have linked the impact of volatile organic compounds (VOCs) from flaring on the degradation of air quality leading to higher rates of long-term respiratory and cardiovascular illnesses for nearby populations.

Turning Algeria’s ambitions into action requires collaboration, and one tangible aspect of this is Fluenta’s partnership with Segitec, a leading provider of instrumentation solutions in North Africa. Segitec’s deep regional expertise ensures Fluenta’s technology is accessible and supported across Algeria.

Together, Segitec and Fluenta play a vital role in supporting Algeria’s operators to meet emissions goals and positioning the country as a regional leader in sustainable energy practices. With third-party investment playing a crucial role in funding flare reduction projects, partnerships like these provide the infrastructure and credibility Algeria needs to attract private capital.

Algeria’s ambitious climate targets and hands-on approach to emissions reduction position it as a clear leader in North Africa’s energy transition. Embracing innovative technologies, strengthening regulatory frameworks, and fostering strategic partnerships sets a benchmark for how oil and gas-producing nations can align economic development with environmental stewardship.

The long-term benefits of sustainable energy practices is significant not just for the environment but also for the country’s economic resilience. As one of Africa’s leading energy producers, Algeria’s progress shows that even resource-dependent economies can combine greener, more efficient practices with lofty industrial ambitions.

Sustainability and competitiveness are no longer mutually exclusive. The ability to balance a high growth in energy production with stringent environmental standards underscores Algeria's position as a key player in the transition to a low-carbon future. 

This is the second of a two-part article. Read the first part here.