Africa’s LNG Exports Set to Soar 175% as Buyers Flee Hormuz
Oil Crashes 9% as Trump and Vance Blame Iran War for Midterm Rout Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Energy buyers burned by the Strait of Hormuz are turning to Africa, and the money is following.The African Energy Chamberprojects that Africa’s upstream sector will attract ~$40 billion a year through 2030, lifting the continent’s hydrocarbon output to 12.5 MMboe/d.
Mozambique, Nigeria, Angola, Libya and Ivory Coast will take the largest shares of that capital, while new projects in Uganda, Kenya and Namibia expand the production base.
Major offshore discoveries and a wave of upstream deals are turning Africa into the world’s next natural gas and LNG frontier.Sub-Saharan Africa (SSA) has emerged as a premier frontier for this global diversification strategy, offering large reserves of uncommitted gas entirely outside the Middle Eastern chokepoints.
Backed by expanding infrastructure and floating LNG (FLNG) deployment,Fitch has forecastthat SSA’s LNG exports will surge by nearly 175% to 98 billion cubic meters (bcm) by 2034, up from 35.7 bcm in 2024.
Meanwhile, the continent’s growing appetite for natural gas is expected to play a big role in driving infrastructure development, with Africa’s natural gas demandprojected to growby 60% by 2050.
According to the Energy Institute’s Statistical Review of World Energy cited viaThe National, natural gas accounts for only 17% of primary energy use in Sub-Saharan Africa, considerably lower than the global average of 25%, thus leaving room for expansion.
A paradigm shift is currently taking place in the continent wherein African nations are increasingly moving beyond simple raw resource extraction, with governments aiming to monetize gas in their domestic markets.
After enduring years of delays due to regional insecurity, Mozambique is currently witnessing a resurgence in its energy sector.
Mozambique is now home to several world-scale projects in the Rovuma Basin off the coast of Cabo Delgado.
First is TotalEnergies’ (NYSE:TTE) $20 billionMozambique LNG project.
Construction at the giant 13.1 MTPA facility resumed in January following the lifting of a four-and-a-half-year force majeure, with the project around 45% complete.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment