Natural Gas Future of Africa’S Economic Development

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Natural Gas Future of Africa’S Economic Development
Natural Gas Future of Africa’S Economic Development

Africa-Press – Rwanda. Africa is positioning natural gas at the heart of its development strategy, viewing it as a critical driver of economic growth, job creation and energy sovereignty, according to the African Energy Chamber (AEC)’s newly released report, State of Energy in Africa: Outlook 2026.

The report underscores a continental shift towards leveraging gas resources to address energy poverty and accelerate industrialisation amid global transition pressures.

It highlights a major shift in energy policies across the continent, marked by a move from a model centred on gas exports to the development of domestic markets capable of supporting electricity generation, industrialisation and economic diversification.

According to the AEC, this transition is not a risky gamble but an essential step to enable African gas-producing countries to fully leverage their fossil fuel resources while supporting the global energy transition.

Domestic gas demand is expected to experience sustained growth in the coming years, driven primarily by increasing electricity needs.

Angola exemplifies this dynamic, with a strategy aimed at rebalancing its liquefied natural gas (LNG) exports and its domestic supply.

Following the commissioning of the Angola LNG plant in 2008, the country has launched numerous initiatives to increase its gas supply, notably through offshore projects, the development of non-associated gas fields, and the gradual expansion of its transportation infrastructure.

Domestically, gas already powers the Soyo combined-cycle power plant (750 megawatts), helping to stabilize the electricity grid.

Angola’s ambitions also include the construction of industrial units, particularly in fertilizers and petrochemicals, which should boost domestic demand and support industrialisation in the medium term.

In West Africa, Mauritania and Senegal joined the ranks of LNG exporters in 2025 thanks to the Greater Tortue Ahmeyim transboundary project.

This deepwater infrastructure has generated thousands of local jobs and is expected to supply gas for electricity generation and other industrial uses, notably in Senegal, starting in 2026.

The report notes that these national projects are part of a broader continental trend. By 2025, gross natural gas production in Africa is projected to reach 331 billion cubic metres, driven primarily by Algeria, Nigeria and Egypt.

Gas already provides nearly 40 percent of the continent’s electricity and could remain a central component of the energy mix until 2050.

For the AEC, natural gas is a crucial transition fuel, capable of supporting the development of renewable energy thanks to its flexibility, while also facilitating the gradual phasing out of coal and fuel oil in several African countries.

The report also emphasises the importance of regional power pools such as the West African Power Pool (WAPP) and the Southern African Power Pool (SAPP), in strengthening the continent’s energy integration.

The future Single African Power Market, envisioned for 2040, could thus amplify the role of gas by connecting producers and consumers across the continent.

The AEC asserts that natural gas should no longer be considered simply an export commodity, but rather a catalyst for prosperity and energy sovereignty.

By combining LNG exports with domestic use, Africa, according to the report, has a strategic opportunity to accelerate its development while preparing for an inclusive and sustainable energy transition.

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