Opportunities for Gas in Sub-Saharan Africa
Gas demand in Sub-Saharan Africa has largely been based on domestic production in specific countries such as Nigeria and Cote d’Ivoire. Outside South Africa, Botswana, and Zimbabwe there is little or no coal-fired power generation for gas to compete with, as power generation is dominated by oil and hydro. This Insight considers the opportunities for gas to displace oil-fired generation in key markets and also to drive the growth in power generation as the region provides more access to electricity to its rapidly growing population. The gas is likely to come predominantly from domestic production but also by importing LNG, with many countries looking at import schemes. There are still many challenges to overcome including geopolitical issues, lack of clear regulatory frameworks, quality and reliability of electricity networks, tariffs and revenue collection and creditworthiness. Notwithstanding these issues, there may be opportunities for LNG to break into some markets, albeit not on the scale and timing of the new Asian markets.