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Nigeria Key To 60% Gas Demand Rise By 2050, Says African Energy Chamber

LEADERSHIP News by LEADERSHIP News
8 months ago
in Business
African Energy Chamber 1
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The African Energy Chamber (AEC) has challenged oil-producing nations in Sub-Saharan Africa to increase their production of natural gas resources, stating that it will be a pivotal component of Africa’s energy future.

In particular, the AEC sees the gas revolution initiatives embarked on by Nigeria as a significant boost to meeting the projected rise in demand on the continent.

The Chamber stated that gas is uniquely poised for growth, despite the shift toward a surplus of liquefied natural gas (LNG) in the global gas cycle.

As detailed in the AEC’s 2026 Outlook Report, “The State of African Energy,” African demand for gas is projected to rise by 60 per cent by 2050. The report noted that gas is the only fossil fuel expected to increase its share of global primary energy demand.

With the 2021 launch of its “Decade of Gas,” a government initiative to develop gas resources and aid in the transition to cleaner energy, Nigeria will likely lead this expansion, as it already produces more than half of the region’s commercialised gas.

“Our 2026 Outlook Report also forecasts that total African gross gas demand will have climbed steadily from roughly 55 billion cubic meters (Bcm) per year in 2020 to over 90 Bcm by 2050. The residential, industrial, and other power sectors are anticipated to drive growth.

“With sub-Saharan Africa holding more than 400 trillion cubic feet (Tcf) of recoverable gas resources, which amount to 70 per cent of the continent’s total reserves, the region is poised to meet that demand,” says the president of AEC, NJ Ayuk.

Last year, Africa supplied 34.7 million metric tonnes (MMt) of LNG (8.5 per cent of the global supply). Sub-Saharan volumes in 2024 reached 26.9 MMt, with 60 per cent destined for Asia and 25 per cent for Europe. Adding Tanzania to the export roster, the 2026 Outlook Report projects a quadrupling of the sub-Saharan supply by 2050.

Furthermore, as West and Southwest African LNG producers are in proximity to both the Atlantic and Indian Ocean markets, producers in these regions can specifically function as swing suppliers, taking advantage of fluctuations in European and Asian LNG spot prices or global supply disruptions.

 

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Also, where gas export projects have domestic market obligations (DMOs), like in Nigeria, Senegal-Mauritania, Angola, and Cameroon, growth in exports grows the gas supply for domestic use.

 

Although only a few sub-Saharan countries currently have power mixes that include gas, generation from natural gas has shown a steady increase across the region over the last decade.

 

As detailed in the report, Nigeria’s gas-fired capacity is at 12.6 GW, and installations in Ghana and Mozambique are at 2.9 GW and 1.1 GW, respectively. Tanzania, Senegal, Angola, Côte d’Ivoire, and South Africa are also home to smaller gas power plants.

 

In countries such as Senegal and Ghana, that have coastal demand centers, floating power ships operating on natural gas are in place to satisfy demand.

 

Nigeria, South Africa, Senegal, Angola, Ghana, Tanzania, and Mozambique all have stated ambitions of developing or furthering gas-to-power infrastructure.

 

The 2026 Outlook frames gas as Africa’s bridge fuel: cleaner than coal or oil, versatile for power generation and industrial applications, and increasingly competitive as global prices decrease in the coming years.

 

Sub-Saharan Africa’s anticipated non-associated gas production surge can deliver energy security, export revenues, and new industrial jobs. Success in this effort will require a resolution of the infrastructure-demand paradox through reliable contracts, transparent pricing, and balanced fiscal policies.

 

If African nations can collectively support upstream scalability, midstream connectivity, and downstream certainty, gas production will not merely surge — it will transform the entire continent for the better, says the report.

 

 

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