WPB: With global liquefied natural gas (LNG) capacity expected to surge from 486 million tonnes annually in 2023 to 755 million tonnes by 2030, Africa is poised to play a crucial role in meeting increasing demand, especially in regions lacking domestic supply or pipeline connectivity, Rystad Energy reports. The continent accounts for roughly one-fifth of the 477 million tonnes per annum of LNG projects currently in the pipeline, encompassing developments under construction, those with secured final investment decisions (FID), and pre-FID initiatives—amounting to about 93 Mtpa.
West Africa, and particularly Nigeria, is central to this growth, producing close to 50% of the continent’s LNG output. Projections indicate that Nigeria could boost its LNG exports by an additional 20 million tonnes by the end of the decade. To achieve this, the country is evaluating options like floating LNG (FLNG) units and compact mini-LNG developments to maximize gas utilization for both overseas markets and domestic consumption.
However, despite its potential, Nigeria faces challenges that have severely impacted its production efficiency. Operational difficulties and persistent sabotage have reduced its liquefaction plant utilization from around 90% in 2018 to just 60% in 2023, underlining the urgency for reforms and infrastructure security to maintain competitiveness.
Africa currently holds the highest density of FLNG infrastructure globally, reflecting its rising significance in the international gas sector. The continent’s onshore LNG facilities have a combined capacity of nearly 70 million tonnes per annum—14% of global capacity. Within Sub-Saharan Africa, West Africa leads, having generated more than half of the region’s LNG in the past year and aiming for a 50% expansion by 2030. Nigeria is the main force behind this effort, accounting for nearly two-thirds of West Africa’s LNG and more than one-third of Africa’s total production, reinforcing its strategic role in shaping the continent’s LNG future.
Though Nigeria ranks among the world’s key LNG producers, its export levels remain far below those of major players such as the United States, Australia, and Qatar. Nevertheless, Nigerian LNG enjoys a geographic advantage, avoiding the impact of U.S. trade tensions while offering shorter shipping routes to European and Asian markets. Yet, the country’s continued struggle with pipeline damage and crude oil theft continues to limit its full potential. While a rebound in Nigerian LNG exports is anticipated, it is unlikely to elevate the country into the top five global exporters anytime soon.
By Bitumenmag
Gas, Oil, Bitumen
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