Natural gas industry in Africa - statistics & facts

Africa houses roughly seven percent of the global proved natural gas reserves. Natural gas production on the continent has been increasing and is set to keep an upward trend, driven by new gas discoveries and projects in development. Since 2000, the gas output volume in Africa has increased by over 70 percent. In the coming years, the continent might record an annual growth rate of nearly three percent in the production level, jumping from roughly 230 billion cubic meters in 2020 to some 520 billion cubic meters in 2050.

Traditional African players in the gas market

Northern and Western Africa dominate the continent’s natural gas market. Nearly 50 percent of Africa’s proved gas reserves are in the northern side of the region, while the western part houses around 30 percent of the resources. Unsurprisingly, natural gas production is stronger in North and West Africa. As of 2020, Algeria recorded the largest natural gas production, reaching an output of around 85 billion standard cubic meters. Egypt and Nigeria followed as main producers and registered an output of 62 billion and 50 billion cubic meters, respectively. Together, Algeria, Egypt, and Nigeria accounted for more than 80 percent of Africa’s gas production in 2020.

New actors in the gas industry

Although the production remains concentrated in traditional players, other African nations have been rising as potential leading producers on the continent. In 2020, Africa counted over 10 upcoming natural gas projects, being the main ones located in Mozambique. Third-largest holder of gas reserves on the continent, the country has a promising future in the industry. The Mozambique LNG project has for instance 4.6 billion barrels of oil equivalent in estimated gas resources. However, the project has been put on hold due to insurgency conflicts in the Mozambican province of Cabo Delgado. In the East of Africa, Tanzania is also set to become a strong gas exporter. Currently in the planning phase, the Tanzania Liquefied Natural Gas Project, also known as Likong’o-Mchinga LNG Project, has an estimated investment value of some 30 billion U.S. dollars. Led by Shell and Equinor, the plant will have the capacity to produce 10 million tons of LNG per year.

Africa's potential as gas supplier

As of 2020, Africa’s natural gas exports amounted to over 95 billion standard cubic meters. Europe absorbed 60 percent of the gas exported from Africa in 2019, either via pipelines or as LNG. Nowadays, pipelines connect Algeria to Spain and Italy, delivering gas in gaseous state to the European countries. The geographical proximity to Europe makes the Northern African nation a strategical supplier, although stagnating production levels and lack of infrastructure may impose challenges for increasing the trade level. In 2021, operational terminals for LNG export on the continent presented a combined capacity of 75 million metric tons per year - a volume expected to grow due to proposed terminals and others already in the construction phase. By 2050, the overall export volume of natural gas from Africa might rise threefold compared to 2019.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Doris Dokua Sasu, Aug 1, 2022

Key insights

Gas reserves in Africa
625.6tn ft³
Natural gas reserves to production ratio
55.7 yrs
Main natural gas producer in Africa
Algeria
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