The total volume of gas exported from Africa has witnessed significant reduction over the years because the region now is said to consume two-thirds of its produced gas leaving very little to export.
According to the 2018 Global Gas Production Report produced by the International Oil & Gas Producers Association (IOGP), export of gas from the region is down from 215% in 2006 to 150%.
The fall according to Africa’s production Indicator of gas is because the region now consumes two-thirds of its produced gas leaving very little to export, compared to about 45% in 2006.
While the region can still export about half of its oil production of about 8 million barrels per day, this is significantly less than a decade ago, when Africa was able to export 70% of its production.
Demand on the continent with regards to gas production has increased by 50% according to the report which has shown that Africa holds more than 500 trillion cubic feet of proven gas reserves, with three main producers: Algeria, Egypt and Nigeria.
After 2000, Egypt and Nigeria joined the ranks of significant producers.
Today, Algeria still is Africa’s top gas producer, accounting for 44% of the region’s output – Nigeria and Egypt each produce about 20%. Since reaching a peak in 2009, however, Egypt’s gas production has decreased by about a third.
Whereas Algeria has a history of stable demand dating back to the 1980s, demand in Egypt has risen by more than 40% since 2006 – making it the African nation with the highest gas demand, accounting for 37% of the region’s requirements. Algeria comes second with 29%.
Commenting on the IOGP report, ENI the operators of the OTCP bloc says trends have shown that, as oil production shrinks, gas produced from the continent now is giving valuable opportunity to support economic growth by building a more sustainable energy mix.
Antonio Vella, Chief Upstream Officer of ENI, says: “As the largest oil and gas investor in the continent, ENI is producing gas across the region: from Ghana to Egypt from Congo to Mozambique, where offshore resources are very promising.”
“The whole of West Africa is an area of interest for gas exploration and production. Gas is giving Africa a valuable opportunity to support economic growth by building a more sustainable energy mix. It can effectively help bring energy to the many people who still lack basic access to it while triggering a real industrial development,” Vella added.
The report also highlights the need for investment in responsible and sustainable oil and gas development that focuses on maximizing available energy while minimizing emissions to the atmosphere.
The IOGP Executive Director Gordon Ballard explained that “The new IOGP Global Production Report 2018 launches an innovative way of interpreting existing data. It features the IOGP Production Indicator, which balances a region’s production of oil or gas against its indigenous demand.”
The International Association of Oil & Gas Producers (IOGP) is the voice of the global upstream industry. Oil and gas continue to provide a significant proportion of the world’s energy to meet growing demands for heat, light and transport.source: O&GLinks