In discussions surrounding energy access in Africa, there is a strong consensus that the current pipeline of gas projects on the continent has reached unprecedented levels of development. To compete in the dynamic global gas market, Africa must leverage its resources to deliver both financial and environmental sustainability to stakeholders. A key solution lies in the deployment of Floating Liquefied Natural Gas (FLNG) technology, which has the potential to unlock stranded offshore gas resources, accelerate project timelines, and enhance domestic energy security alongside export revenues. This technology simplifies the development of offshore resources, positioning it as a crucial element in realizing Africa’s gas potential.
Countries like Nigeria have already benefited significantly from FLNG, utilizing their vast gas resources to enhance energy security and export capacity. In Cameroon, the Kribi FLNG facility has opened new avenues for LNG exports, providing essential revenue and improving energy access. Mozambique is also poised to capitalize on FLNG technology to monetize its offshore gas reserves, promising further economic development. Notably, Humphrey Kariuki and his company, JCG, have already ventured into gas investments, taking advantage of the growing gas discoveries in Tanzania and Mozambique.
Humphrey Kariuki, founder of JCG, stated, “We see tremendous potential in these regions, and our investments are focused on developing sustainable solutions that can benefit local communities and economies. The integration of technologies like FLNG and CNG is essential for Africa’s energy future. By utilizing the gas resources on the continent efficiently, we can greatly enhance energy security.”
In Tanzania, the introduction of Compressed Natural Gas (CNG) projects has provided cost-effective and cleaner alternatives, particularly in the transport sector. Companies like TAQA Dalbit, a joint venture between Janus Continental Group Oil and Gas and TAQA Arabia, have successfully deployed CNG solutions, with their Mastergas station located along Airport Road serving 1,600 vehicles daily in Dar es Salaam. Many users, primarily operators in the public service vehicle industry, are converting their vehicles to utilize CNG alongside traditional fuels. This shift has significantly contributed to economic growth in Tanzania, and the government plans to expand CNG access to other regions over the coming years.
Similarly, in Egypt, CNG is playing a key role in transforming the energy landscape. The country has a target to increase the number of CNG stations to 1,000 by 2025, reducing its reliance on gasoline and diesel while decreasing carbon emissions. This initiative is part of the country’s broader strategy to enhance energy security and promote sustainable development in the region. Together, the advancements in CNG technology in both Tanzania and Egypt underscore the significant role that natural gas can play in driving economic growth and improving energy access to cheaper energy solutions across Africa.
He emphasized, “These advancements represent a pivotal shift in how we approach energy access, positioning natural gas as a key driver in our transition to a cleaner, more sustainable energy landscape.”
Financing ambitious gas projects in Africa, however, presents both challenges and opportunities. The transformative potential of large-scale liquefied natural gas (LNG) initiatives, alongside smaller, domestically focused gas ventures, could significantly impact job creation, economic growth, and energy access. According to a report by the African Development Bank, investments in gas infrastructure could generate over 1.5 million jobs and boost GDP growth across the continent by 3% annually.
Kariuki further emphasized the role of gas in Africa’s energy transition. “Natural gas is a vital bridge for Africa,” he stated. “It provides a cleaner alternative to coal and supports the shift towards renewable energy, enabling us to meet our growing energy demands sustainably. Natural gas emits up to 50% less carbon dioxide than coal, making it a favorable option during the transition to greener energy sources.” He further noted, “We must ensure that our investments not only boost our economies but also adhere to environmental standards that protect our planet for future generations.”
Investments in Africa’s energy sector can further be significantly enhanced by developing robust regulations and ensuring legal certainty surrounding new energy sources across the continent. A clear regulatory framework will ease business operations and foster development, enabling stakeholders to navigate the complexities of the energy market with confidence. Predictable policies and standards mean that investors will be more inclined to commit resources to projects that drive growth and innovation in the energy landscape.
Mozambique and Angola are two countries that are set to benefit immensely from gas development. Mozambique, with its vast offshore reserves, is projected to become one of the world’s top LNG exporters, with investments expected to reach $50 billion in the coming years. Meanwhile, Angola is actively expanding its gas production, with plans to increase output from 9 billion cubic meters in 2020 to over 15 billion cubic meters by 2025, enhancing both energy security and export capacity.
Discussions among energy stakeholders now emphasize the importance of a stable investment climate to attract international capital. Projects with strong environmental credentials, particularly those that demonstrate significant reductions in carbon emissions, are showing better resilience to secure funding. Additionally, regional cooperation and the integration of innovative technologies will be crucial for maximizing the benefits of Africa’s gas resources.
To support these initiatives, the recent introduction of the Africa Energy Bank has emerged as a crucial player in financing natural gas projects across the continent. Established to enhance energy access and sustainability, the bank offers a range of financing options tailored to both large-scale LNG projects and smaller, domestic gas ventures. These options include low-interest loans, guarantees, and equity investments, designed to address the unique challenges faced by energy projects in Africa, such as sovereign risk and infrastructure development. This stable investment climate and support for environmentally friendly projects is expected to attract international capital and drive the continent’s energy transition.
Government intervention is, however, still important to overcoming market failures and unlocking further infrastructure investment. Establishing gas offtake agreements and risk-sharing mechanisms can attract private capital and facilitate the development of essential infrastructure projects. Overall, Africa’s gas investment strategy must be both relevant and forward-looking to continue drawing global capital, positioning natural gas as a key player in the continent’s transition to cleaner energy sources.
