Gas
Africa and Asia pivot from coal to natural gas
Emerging economies across Africa and South-East Asia are increasingly turning to natural gas to drive growth while reducing emissions, according to recent reporting.
Key points
- Wood Mackenzie projects natural gas demand will reach 30 percent of South-East Asia's primary energy mix by 2050.
- The International Energy Agency notes that natural gas produces roughly half the carbon dioxide emissions of coal for equivalent electricity generation.
- African Energy Chamber reports indicate Nigeria and Libya represent over 40 percent of ongoing gas-to-power developments across Africa.
What happened
Emerging markets in Africa and South-East Asia are accelerating their transition away from coal by prioritizing natural gas infrastructure, Il Sole 24 ORE reported. Strategic projections from Wood Mackenzie indicate that South-East Asian demand for gas will surpass both oil and coal, forming 30 percent of the primary energy mix by 2050. Consumption in the region is anticipated to grow by 3.1 percent annually through 2035, while combined-cycle power station capacity is expected to double.
International Energy Agency data cited in the report shows that natural gas generates about 50 percent fewer carbon dioxide emissions than coal for an equivalent amount of electricity. This reduction allows developing nations to lower emissions without constraining energy supplies for households and businesses. Furthermore, modern gas-fired facilities provide operational flexibility, balancing intermittent renewable sources like wind and solar to maintain grid stability.
Regional planning reflects this shift. Vietnam has prohibited new coal-fired stations in favor of gas and liquefied natural gas, targeting over 22 GW of gas capacity within the decade. Meanwhile, India has initiated a significant incentive program valued at 375 billion rupees to convert coal into cleaner syngas for heavy industries. In Africa, capital expenditure on exploration and production is climbing toward $41 billion, with a strong emphasis on gas-to-power solutions to address energy access.
Why it matters
The acceleration of gas-to-power initiatives holds substantial implications for energy investments and industrial development across the African continent. African Energy Chamber findings highlight that Nigeria and Libya drive more than 40 percent of the continent's planned gas-to-power capacity under development. In Nigeria, progress continues on the 1.35 GW Gwagwalada Independent Power Plant.
For energy investors and policymakers in Abuja, these regional trends confirm that domestic gas monetization is vital for economic expansion and grid reliability. With global commodity markers reflecting a Henry Hub gas spot price of 3.22 US$ per MMBtu as of 14 October 2026, according to US Energy Information Administration figures, natural gas remains a central pillar for powering industrial growth and backing renewable integration across emerging markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
