A new study from the Moroccan think tank Policy Center for the New South found that the African continent should not run out of gas, but that African nations will have to heavily broaden their national gas bill.
“Despite the disruption of the global gas market, the African continent should not be affected in finding the gas it needs,” the study notes.
There is a potential supply in Africa today capable of meeting these needs. This study makes it clear that natural gas prices did not wait for the Ukraine crisis to get out of control. World prices have soared since 2020, and have been on a steady rise since.
The war “will, however, amplify their prices and change the conditions of their supply for importing countries,” the study notes.
Therefore, the Ukraine crisis will reveal the weaknesses of this market and amplify the consequences. Among these weaknesses are those related to the lack of investment in production, the way this production is supplied, and the lack of diversification of suppliers.
In terms of gas reserves on the African continent, North Africa alone holds 48%, followed by West Africa (31%), South Africa (16%), Central Africa (4%), and East Africa (1%).
In addition, seven countries account for 90% of African gas reserves, namely Nigeria, Algeria, Mozambique, Egypt, Libya, Cameroon, and Morocco.
Nigeria is the country with the largest reserves in Africa, with 5.5 billion m3, followed by Algeria with 4.5 billion m3 and Mozambique with 2.8 billion m3.
These three countries alone account for 70% of the continent’s gas reserves. Today, 18 countries produce gas in Africa. These countries are classified into 3 main categories: large, medium, and small producers.
Morocco is one of the 10 small producers. These countries account for up to 2% of national production. In addition to Morocco, this category includes South Africa, Cameroon, Congo, Democratic Republic of Congo, Equatorial Guinea, Gabon, Ghana, Senegal and Tanzania.
There are 3 main producing countries, namely Algeria, Nigeria and Egypt. These 3 countries alone account for 87% of total production.
The study highlights that Morocco has an important gas potential that is progressing, in a leading country in renewable energies on the continent.