Africa’s LNG consumption set to join fast-growing sectors globally by 2040: Report

Africa’s LNG consumption set to join fast-growing sectors globally by 2040: Report

African natural gas consumption and production is set to become one the fastest-growing sectors globally by 2040, holding a promising future despite the ongoing challenges imposed by the COVID-19 crisis, according to the Africa Liquified Natural Gas (LNG) report issued on Monday.

The report also said that Africa is projected to increase its share of global marketed gas production from current figures of six percent to 11 percent by 2050.

It added that despite projects' delays caused by COVID-19, and a temporary oversupply in the market that has limited capital expenditure, several African LNG projects have been able to progress, positioning Africa as a major LNG competitor globally.

On the other hand, the 2021 gas outlook for the continent is expected to remain loose until prices tighten despite the gradual increase in demand as the global economy recovers, according to the report.

On the consumption side, the report projected growth across the continent at an average of 3.3 percent per year to reach approximately 195 billion cubic meters (bcm) in 2025 and up to 380 bcm in 2050, comprising six percent of global total consumption.

"Driven primarily by industrial and power generation needs, development is expected to dramatically increase.