Global energy transition policies are pushing for an increase in the use of gas as a transactional energy resource, thereby increasing the demand for LNG. This provides a huge opportunity for African hydrocarbon producing countries to monetize LNG.

Africa is already well positioned to become a global energy hub with a number of projects operating and an increasing number already in the pipeline. Sub-Saharan Africa, for instance, could boost its LNG exports to 60 million tons per year (MMtpa) by 2025 and approve an additional 74 MMtpa by 2030, according to a report released by the African Energy Chamber. However, leading and emerging gas producing countries in Africa such as Mozambique, Nigeria, Niger and Tanzania require massive investments to be made to develop infrastructure that enables production to increase and LNG exports to improve.

Notable investments made in gas production in Africa include Mozambique, in which $50 billion has been committed for two large-scale LNG projects — the TotalEnergies-operated Mozambique LNG project and the ExxonMobil-operated Rovuma LNG project. To date, Mozambique has been a relatively small gas producer.

However, recent discoveries associated with these two projects have increased the country’s gas reserves to 100 trillion cubic feet (Tcf) and investments are transforming the country as a global energy exporter.