Report: Despite Nigeria’s 210.54 TCF Reserves, Algeria, Egypt Control 60% of Africa’s Gas Market

•GECF sees positive outlook for Nigeria’s gas production 

•Continent’s gas consumption hit 183bcm in 2024

Emmanuel Addeh in Abuja

Despite holding Africa’s largest gas reserves of 210.54 Trillion Cubic Feet (TCF), Algeria and Egypt control 60 per cent of the continent’s gas market, a new report by the Gas Exporting Countries Forum (GECF), has said.

However, the production of gas in Nigeria, which also has the status of the country with the 9th highest stock of the resource globally, like in some other African nations, the report said, has been hobbled by several obstacles.

These, it said, include: Inadequate gas infrastructure, conflict between prioritising domestic gas use and fulfilling export commitments, limited energy access and difficulty in securing financing for gas development projects.

In spite of these challenges, the GECF, headquartered in Doha, Qatar, stated that Africa’s natural gas consumption hit 183 billion cubic meters (bcm) in 2024,  growing by 3 per cent, fuelled by ongoing industrialisation, increased demand in the power sector, and the expansion of Liquefied Natural Gas (LNG).

The 2025 Annual Gas Market Report (AGMR), said Algeria and Egypt remain the primary drivers of growth on the continent, with demand fuelled by the industrial and electricity sectors, but with Nigeria also contributing significantly, particularly through its expanding gas-to-power projects.

“Nigeria, the regional leader in proven gas reserves, played a pivotal role in counterbalancing lower gas production elsewhere in Africa, with increased gas production in 2024. The increase was primarily attributed to a rise in associated gas production, which now accounts for 42 per cent of total gas output.

“Notably, the government is executing an ambitious programme for associated gas recovery and monetisation, through utilising this gas as feedstock for LNG export terminals. This initiative has significantly reduced Nigeria’s flaring intensity.

“Looking ahead, a positive outlook for Nigeria’s gas production is expected in the short and medium-term, largely fuelled by substantial upstream and midstream investments from major international companies, as part of Nigeria’s ‘Decade of Gas’ initiative,” the report added.

According to the GECF, of which Nigeria is a prominent member, overcoming these challenges require coordinated efforts in policymaking, investment and infrastructure development.

The flagship gas publication offers a comprehensive and insightful analysis of the key trends and developments that shaped the global gas market in 2024, while also providing short-term projections for the natural gas industry.

Secretary General of the GECF, Mohamed Hamel, commenting on the report, stated: “In a year when global primary energy demand surged, natural gas reaffirmed its central role, with consumption reaching an all-time high and contributing 35 per cent to the incremental growth in primary energy demand — the highest share among all fuels.”

According to the report, global gas consumption grew by 2.5 per cent in 2024, reaching a record high of 4,170 bcm, driven regionally by Asia Pacific and sectorally by the power generation and industrial sectors, supported by steady global economic growth, increased demand for heating and cooling, and lower gas prices.

Global gas production kept pace with rising gas demand, with supply growth driven by Eurasia, the Middle East, and Asia Pacific and GECF member countries continuing to play a key role in meeting global gas needs, the document added.

In addition, Global gas trade rebounded by 4 per cent to 1.17 tcm, supported by increased volumes in both pipeline gas and LNG segments, with Asia reinforcing its position as the leading gas-importing region.

“Africa’s natural gas consumption continued to rise, reaching 183 bcm, marking a 3 per cent y-o-y increase. Algeria and Egypt, representing together over 60 per cent of the regional market, were the primary drivers of this growth, with demand fuelled by the industrial and electricity sectors.

“Nigeria also contributed significantly, particularly through its expanding gas-to-power projects. The power sector remained the dominant force behind gas consumption across the continent, as governments focused on improving electricity access and reliability.

“Looking ahead to 2025, Africa’s gas consumption is expected to grow by 4 per cent, fuelled by ongoing industrialisation, increased demand in the power sector, and the expansion of LNG regasification terminals in key markets such as South Africa.

“As the region works to strengthen energy security and reduce reliance on coal and oil, natural gas will continue to play a crucial role in Africa’s evolving energy mix. Several developments in the region are poised to boost gas consumption,” it added.