Africa : the next gas hunting ground

The Russia–Ukraine conflict is creating a major disruption in the commodities trading business. Russia is a major exporter of some of the world’s most important commodities. Thus, the Russian invasion and the consequent sanctions imposed by various Western countries are reshuffling the cards of the most globally interconnected markets, especially those related to crude oil, its derivatives and gas. Together with pressure from public opinion, these sanctions have also led some companies to become averse to trade with Russia, thereby potentially disrupting key supply chains.

Regarding gas imports, the European Union (EU) needs to act quickly and find sustainable alternatives to replace Russian supplies. Possessing significant natural gas resources and benefitting from an advantageous geographical position, Africa has a once-in-a-lifetime opportunity to step in and substantially increase its share of gas exports to the EU.

However, African countries need to rethink the dynamics of their external relationships. The objective is to find the right balance between accelerating the development of a sustainable and diverse local economy and exporting a strategic part of their natural resources.

The purpose of this note is to provide an overview of the gas market in Europe and Africa. It seeks to highlight the key factors that African countries should consider to ensure optimal internal and external value from the development of natural gas projects.