Natural gas is abundant in North Africa and several sub-Saharan African countries

In North Africa, Algeria, Libya and Egypt have important reservations. Since the 1960s Algeria has developed the great field of Hassi R’Mel. This field allowed the export of liquefied natural gas from the first liquefied natural gas unit in Arzew. Local consumption of natural gas has also grown widely.

In Libya, the export of gas to Europe was implemented quickly but remained at a moderate level.

In Egypt, natural gas consumption grew rapidly and eventually absorbed most of the resources. The liquefied gas export units had to be stopped. The latest discoveries of gas deposits in the NIl Basin (especially Zohr) have allowed this to cope with the development of local gas consumption and to resume LNG exports.

In Nigeria, natural gas associated with oil and non-associated gas production is used in a limited way for the production of electricity and for the export of LNG by the Bonny plant.

LNG units in Equatorial Guinea and Angola will also be noted. But the local exploitation of gas in sub-Saharan Africa remains limited to electricity production in some countries (Cote d’Ivoire, Congo, Gabon ..)

Two important projects hold attention

The Transaharian gas pipeline

Very old project, the TSG (Trans Saharian Gaspipeline) aims to allow the export of Nigerian gas to Algeria and eventually to Europe. This project was recently revived by the three countries concerned: Nigeria, Niger, Algeria.

Niger’s oil deposits could enhance the interest of the project. Agadem’s deposits were put into production some 10 years ago, but until now production has been limited to 20,000 barrels a day to feed the Zinder refinery (production, transport and refinement are carried out by the Chinese company CNPC). The pipeline that will connect Agdem’s deposits to Cotonou, Benin, to allow the export of crude oil will increase the oil extraction to more than 120,000 barrels a day; An associated gas production could lead to a new generation of electricity and an export of excess quantities

However, this dry project is facing significant obstacles:

• Nigerian gas would be controlled by Algeria, which, very logically, would give priority to the exploitation of its own resources for local consumption or for export and could limit Nigeria’s gas volumes to export
• Nigeria may give priority to LNG exports. Bonny’s liquefaction unit has been exporting very substantial amounts of gas for more than 20 years
• The security situation in the Sahel is an additional challenge
• Finally, the recent coup leaves uncertainties on the oil sector in Niger and in particular on the oil exports of Agadem

Le gazoduc Nigeria Morocco

This project dates back to 2016. During a visit by the King of Morocco to Nigeria, it was decided to consider the construction of a gas pipeline from the Niger Delta (hydrocarbon production region) to reach Morocco by following, offshore, the African coastline. It could thus serve countries without gas (Benin, Togo, Liberia, Sierra Leone...) and collect resources in Ghana, Ivory Coast and of course in Senegal in Mauritania.

There is already a gas pipeline, the West African Gas Pipe Line, which connects Nigeria to the Takoradi power plant in Ghana. Originally the project had to go further to the Ivory Coast, Liberia ... or even Senegal. Difficulties for such extension of the pipeline have limited its development on Warri Takoradi

Built in 2005 by Chevron, the WAGPL operated at low capacity. There are several reasons for blurring: technical difficulties – gas pipeline ruptures caused by ships but mainly economic difficulties: gas bills used for electricity paid lately and preferably given by Nigeria to the liquefaction value of gas (the Bonny terminal exports large quantities of LNG to Europe).

An idea that seems attractive would be to connect this gas pipeline to the Mediterranean gas pipeline Europe, built by Algeria about 20 years ago to feed Spain and the South of Europe through Morocco and the Strait of Gibraltar.

Two challenges are to be taken into account: the cost of the project, which is several tens of billion dollars and the risk of slowing down the European market when the gas pipeline is operational.