Gas: Highly prized reserves in a tightening market

In the past decade Africa may well have been the most exciting region in the world for oil exploration but, for many multinational companies, the continent has also emerged as an important gas play.

With Europe concerned over Russia’s political motives in exploiting its energy wealth and big international companies shut out or deterred from investing in the Middle East, many eyes have turned to Africa in the hope of securing future supply.
Traditionally, African gas supply to Europe has come from north African countries, notably via pipelines from Algeria and Libya, just across the Mediterranean.

But the creation of a global gas market through the development of liquefied natural gas (LNG) technology and shipping in the past 15 years has also opened up the possibility of north American and Asian countries sourcing gas from Nigeria, Egypt and Algeria.

With international gas markets set to tighten as demand for power generation and industrial raw materials in emerging markets soars, Africa’s gas reserves are likely to become even more prized.

By some estimates, the continent holds roughly 8 per cent of global gas reserves, but it also possesses some of the highest quality hydrocarbons reserves in the world and is relatively unexplored.

Financial Times