Gas Market in Africa

North Africa countries such as Algeria and Egypt have been major international players in the world gas market for quite a while now. Sub-Saharan Africa producers lead by countries like Nigeria are investing more and more in the gas sector for both domestic and export demands.

With the emergence of the Gulf of Guinea in the world economy, many Sub-Saharan African nations are well intended to reap the benefits of large untapped natural gas resources.

Regional integration and big international projects such as Trans-Sahara Gas Pipeline (TSGP) and the West Africa Gas Pipeline (WAGP) clearly demonstrate the continent commitment to developing its gas industry.

A proved reserve of 514.92 trillion cubic feet (BP Statistical Review of World Energy 2008), increased awareness of the financial value of gas reserves and the relentless rise in global gas consumption are working in concert to make Africa a vital centre of gas production for markets around the world.

The Nigerian Gas Master Plan is the perfect illustration of government taking an integrated approach to the entire gas value chain in view of optimizing gas production, through pipeline infrastructure and gas plants and to gas markets. Nigeria with more than 36% of Africa proved reserve, 186.99 trillion cubic feet has still a lot to gain from monetizing natural gas resources. In 2007, the country produced 35 billion cubic feet which equated to 18% of total African production for the same year second only to Algeria with an output of 83 billion cubic feet.

Angola, Equatorial Guinea, Cameroon, Gabon Chad and the Republic of Congo are all making big push to develop the gas sector as a way to stimulate economic growth.

Equatorial Guinea completed its first LNG train in May 2007 and is planning a second train while finalising arrangements to process stranded gas from Nigeria and Cameroon.

The long anticipated Angola LNG project, comprising both offshore and onshore operations to commercialise gas resources, reached its final investment decision in December 2007. The first production is expected for first quarter of 2012.

To satisfy heavy investment requirements, African countries rely on home-grown capital as well as foreign investment. GasAfrica - Nigeria 2009 will be a platform for operators, investors and service providers to meet all the key decision makers in African countries.