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African Perspective

Africa Urged to Turn LNG Oversupply into Domestic Growth Opportunity

Africa faces rising global LNG supply and must invest in infrastructure to turn growing gas production into local power, industry growth, and long-term economic resilience

Africa Urged to Turn LNG Oversupply into Domestic Growth Opportunity
The High Street Journal
Jan 1, 2026

Global supplies of liquefied natural gas (LNG) are rising rapidly, presenting Africa with both new opportunities and fresh challenges as the global energy market shifts.

New LNG projects in the United States and Qatar are expected to significantly increase global supply from 2027. Bloomberg’s Global LNG Market Outlook 2030 projects that worldwide output could reach 594 million tonnes by the end of the decade, representing a 42% increase from 2024. This expansion is likely to create periods of oversupply, increasing competition among exporting countries.

Africa’s gas production is also growing, supported by new developments across the continent. While North Africa currently accounts for the bulk of production, output in sub-Saharan Africa is expected to rise steadily in the coming years. 

By 2050, gas demand across the continent could increase by 60 percent, driven by population growth, industrialisation and rising energy needs.

Despite this momentum, much of Africa’s gas continues to be exported rather than used locally. Limited pipeline networks, storage capacity and processing facilities restrict access to gas for households, industries and power generation. As a result, exporting LNG often remains the most practical option for producers.

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However, momentum is building around infrastructure development. New LNG terminals are being developed in South Africa and Morocco, while Ethiopia has launched a large-scale rail-based gas transport initiative designed to link more than 40 African countries. 

Several major pipeline projects are also progressing, including the Nigeria–Morocco Gas Pipeline, the Trans-Saharan Gas Pipeline, and a Mozambique–Zambia pipeline announced in 2025. Senegal and Ghana are also expanding domestic gas infrastructure to support power generation and industrial activity.

Energy analysts note that stronger investment in domestic infrastructure could allow natural gas to play a much bigger role in powering homes, industries and economic growth. The African Energy Chamber estimates that natural gas could account for up to 45% of Africa’s electricity supply by 2050.

With global competition in energy markets intensifying, Africa’s long-term challenge will be to convert its gas resources into sustainable economic value. 

Strengthening infrastructure, improving regional connectivity and supporting local consumption will be key to ensuring that the continent benefits fully from its growing gas potential.

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