By Moses Patience Chat
The African Energy Chamber (AEC) has released its official market-focused report, the “State of African Energy Q1 2023 Outlook.”
The report, which was released by the Executive Chairman (EC) of AEC, NJ Ayuk, provided a comprehensive overview of the African energy sector and valuable insight into the current state and future prospects of the market, which will serve as a guide for investors and African energy policymakers.
According to the report, “the top five oil producers in the continent will be Nigeria, Libya, Algeria, Angola, and Egypt, accounting for approximately 80% of the continent’s supply, with the majority of production coming from Nigeria and Angola.”
Regarding oil supply, the report details 2023 global liquid outlooks, stating that month-on-month, liquids are expected to remain flat and stable, while African liquids and supply are expected to add up to 8% of the global volumes over the year.
Speaking on Liquefied Natural Gas (LNG), the report revealed that Africa’s total LNG export infrastructure is expected to increase from the existing 80 million tons per annum (mtpa) to about 110 mtpa by 2030, increasing even further to 175 mtpa by 2040.
It added that major markets that will top the supply chart will be Nigeria, Algeria, Mozambique, Senegal-Mauritania, Tanzania, and Egypt. The report said more than half of the hydrocarbon output from Africa over the period from 2025 to 2040, and about 60% of the remaining recoverable oil and gas reserves are estimated to come from these finds. As such, governments are putting in efforts to bring these projects online, while increasing exploration investment.
In the words of Ayuk, “our most recent report, ‘The State of African Energy Q1, 2023 Outlook’, provides investors with the information they need to expand financing in Africa. The report also offers African energy policymakers, project developers and governments the tools that they need to develop the market, addressing energy poverty by getting large-scale oil, gas and renewable energy projects off the ground.
“As an advocate for the success of the African energy sector, AEC is committed to facilitating new investment and development across the continent, and our most recent report does just that, equipping stakeholders with insights, analysis and projections. The year 2023 is going to be a big year for the African energy sector, and this report offers a comprehensive guide to investing in and developing African energy projects.”