Planned investments across Africa totalling US$245 billion for liquified natural gas (LNG) terminals, gas pipelines and power stations represent an enormous stranded asset risk, as much of this gas is intended not for domestic consumption but rather to correct for Europe’s short-term energy crisis resulting from Russia’s invasion of Ukraine, finds a new report from Global Energy Monitor.
Data from the Africa Gas Tracker show investments in planned LNG export terminals dwarf money for gas plants to power Africa. Estimated capital expenditure for in-development LNG terminals is US$103 billion, 92% of which would be for LNG export terminals. This total would increase the region’s 79.3 million tonnes per annum (mtpa) of LNG export capacity by 111%, while doing little to improve electrification on the continent.
- The planned gas plant buildout in Africa would require US$62 billion in investment. Yet only US$9.7 billion is attributed to projects under construction, while US$52.3 billion is attributed to proposed projects.
- 64.1 GW of gas power plant capacity is in development, of which only 10.5 GW is under construction, 17.3 GW is in pre-construction and 36.4 GW has been announced. Nigeria and South Africa have 22.5 GW and 16.6 GW of in-development gas plants, respectively, and while both are gas producing countries, each faces inadequate installed electricity generation capacity.
- Much of the continent’s gas pipeline buildout has yet to secure investment. The planned gas pipeline buildup in Africa would require US$89 billion in investment. Only US$4 billion is attributed to projects under construction, while US$85 billion is attributed to proposed projects.
- While Africa has an estimated 23,932 km of gas pipelines in development, most projects remain in the proposal stage, with only 1,872 km currently under construction. South Africa and Mozambique lead in proposed gas pipelines, with 4,792 km and 4,352 km, respectively.
Overall the Africa Gas Tracker identifies 65 GW of gas plants in development, 75 mtpa LNG terminal capacity in development and 22 600 km of gas pipelines in development.
Christine Juta, Project Manager, Africa Gas Tracker