The Republic of Congo is embarking on a new economic era with the launch of its first liquefied natural gas (LNG) project in partnership with Italian energy company Eni.
This $5 billion project will utilize natural gas from Eni’s Marine XII project located off the coast of Congo and is expected to produce 3 million tonnes per annum (mmtpa) by 2025.
The operation will consist of two floating LNG (FLNG) plants that will process gas from the Nenè and Litchendjili fields, which are already in production. The FLNG vessels are set to commence production in 2023 and 2025, respectively.
The significance of Congo’s LNG project cannot be understated, as it positions the country as a major player in the global LNG market and serves as a valuable example for other African nations.
LNG offers a critical pathway for harnessing gas resources, reducing energy poverty, fostering value-added industries, and contributing to Africa’s energy transition.
The African Energy Chamber (AEC) eagerly anticipates the realization of these benefits by more African states, and the organization believes that progress is being made towards achieving this goal.
The recently released “The State of African Energy 2023 Q1 Report” not only predicts stable LNG production in Africa throughout the remainder of this year but also projects significant growth in the coming years.
One of the key factors driving this optimistic forecast is Africa’s increasing capacity for LNG production, storage, and transportation.
The Congo LNG project is just one of many initiatives on the continent contributing to a substantial expansion in the total LNG export infrastructure capacity. The capacity is expected to grow from 80 mmtpa to approximately 110 mmtpa by 2030 and surpass 175 mmtpa by the end of the next decade.
Several other noteworthy LNG projects are progressing in Africa. For example, Perenco, an Anglo-French independent energy company, made a final investment decision to construct a $1 billion LNG project near Gabon’s Cap Lopez oil terminal.
The plant’s capacity is projected to reach about 700,000 tonnes of LNG annually following a three-year construction period. Additionally, Tanzania recently concluded negotiations with Equinor from Norway and Shell from Britain to build a $30 billion LNG terminal in the Lindi region.
Tanzania’s offshore natural gas reserves, estimated at 57.54 trillion cubic feet (tcf), will be developed through this project.
Numerous other LNG projects are underway, including South Africa’s Virginia Gas Project, Guinea-Conakry’s partnership with West Africa LNG, Angola’s Quiluma and Maboqueiro gas fields development, and large-scale projects in Nigeria, Mozambique, and Senegal-Mauritania.
In addition to LNG infrastructure, the report explores natural gas production in Africa and its potential impact on LNG exports. Over the past few years, approximately one-fourth of Africa’s natural gas production has been directed towards international markets in the form of LNG.
With an anticipated increase in natural gas production, larger volumes of African LNG are expected to be exported. The report projects that Africa’s natural gas production will rise from 105 billion cubic meters (bcm) in 2023 to 220 bcm in 2040, potentially resulting in LNG exports from Africa reaching 100 bcm by 2035.
The economic benefits of Africa’s natural gas export activities are considerable, encompassing financial growth, job creation, and technology-sharing opportunities. Furthermore, natural gas has the potential to address Africa’s widespread energy poverty. The AEC is committed to making both these goals a reality and is actively working towards their achievement.
