Gas
Africa needs $1trn in gas investment as global demand rises
Global energy consumption is set to climb by twenty per cent over the next three decades, requiring massive capital injections across the African gas sector.
Key points
- Global energy demand is projected to reach 768 exajoules by 2055.
- Africa requires $1 trillion in cumulative investments for its natural gas value chain.
- Natural gas will increasingly support electricity generation alongside renewables.
Global energy needs will expand significantly by the middle of the century, driven by demographic and economic growth, according to the Gas Exporting Countries Forum (GECF).
Growth in demand
EnviroNews Nigeria reported that total energy consumption is anticipated to rise to 768 exajoules by 2055, moving up from 641 exajoules in 2024. Abubakar Abbas, a senior analyst at GECF, presented the forecasts during the Energy Finance Forum at African Energy Week in Cape Town, noting that natural gas and renewables will take up the bulk of this expansion.
Natural gas usage dedicated to power generation is expected to climb over the period, moving from 35 per cent to 39 per cent as grids incorporate more variable renewable sources. Liquefied natural gas will also play a larger role in linking producers with international markets.
Investment requirements
Meeting future requirements will depend heavily on unexploited deposits, with the GECF estimating that 86 per cent of production by 2055 must come from fields that are not yet operational.
For the African continent specifically, cumulative financing of $1 trillion will be necessary across the gas value chain. This capital is intended to boost regional production, expand domestic energy availability, and enhance export capacities.
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 2024Countries in this story
Written 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.
