Africa’s energy demand is projected to increase by 30% by 2040, driven by population growth and economic activities. The continent’s 620 trillion cubic feet (tcf) of natural gas resources will play a critical role in ensuring energy security. To harness this potential, African nations are developing extensive natural gas infrastructure projects aimed at stabilizing the energy market and promoting economic growth.
Tanzania LNG – $42 billion
Tanzania is amending a Host Government Agreement reached in 2023 with majors Shell, Equinor and ExxonMobil for the $42 billion Tanzania LNG project. Tanzania LNG will untap over 16 tcf of natural gas reserves within Shell-operated blocks 1 and 4, and up to 20 tcf of reserves within the Equinor-operated block 2. The project will construct five LNG trains, producing 10 million tons of LNG annually. Up to 10% of the energy produced will be allocated to Tanzania’s domestic market, improving energy security, while the remainder will be exported, increasing the country’s revenue. The final investment decision (FID) for the project is expected by 2028. The initiative will position Tanzania as a significant LNG exporter and marks the largest gas project in eastern and southern Africa.
Rovuma LNG – $30 billion
In May 2024, the Abu Dhabi National Oil Company acquired Portuguese energy firm Galp’s 10% stake in Mozambique’s Rovuma basin’s Area 4 concession, comprising the proposed $30 billion Rovuma LNG Terminal. Area 4 of the Rovuma basin is estimated to hold 85 tcf of natural gas reserves. Once operational in 2025, the Eni and ExxonMobil-led project will produce 15.2 million tons of LNG per annum for global markets and 17,000 tons of LPG for the local market, boosting access to clean cooking for local communities. Area 4 alone is expected to generate €20 million (US$21,4 million) in state revenue.
Nigeria-Morocco gas pipeline – $25 billion
Morocco and Nigeria are finalizing studies and designs for the $25 billion Nigeria-Morocco Gas Pipeline. The 5,600 km pipeline will transport 30 billion cubic meters of gas annually from Nigeria’s Niger Delta to Morocco and Europe, passing through 13 African countries and bolstering regional energy security. A final investment decision for the project is expected by 2025.
Mozambique LNG – $20 billion
TotalEnergies is engaging with global financial institutions to re-start the development of the $20 billion Mozambique LNG project. Construction is set to begin in 2024, targeting over 75 tcf of gas in the Cabo Delgado province. The project aims to meet energy demands in the Atlantic, Asia-Pacific, Middle East, and Indian subcontinent markets, and will create 15,000 jobs. Mozambique LNG includes building two liquefaction units with a capacity of 13 million tons per annum (mtpa), expandable to 43 mtpa. TotalEnergies will develop the project in partnership with Japan’s Mitsui, Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.
Trans-Sahara Gas Pipeline – $13 billion
The Trans-Sahara Gas Pipeline (TSGS) is progressing, with the governments of Nigeria, Niger and Algeria developing the pipeline in their respective territories, awaiting integration. Nigeria invested over $1 billion in its section – including in the development of the Ajaokuta-Kaduna-Kano pipeline, which forms a segment of the larger TSGP network – as of February 2024. In 2022, the three countries, established a joint task force to conduct a feasibility study and oversee the project. The over 4,000 km pipeline will transport 30 billion cubic meters of gas annually from the three African countries to Europe. Operated by the Trans-Saharan Natural Gas Consortium, the project aims to maximize the monetization of natural gas from the three countries for economic growth while enhancing energy security in Europe.
