Market Size of Africa Natural Gas Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | Low |
Major Players.webp "Africa Natural Gas Market Major Players")
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Africa Natural Gas Market Analysis
Africa's natural gas market is expected to record a CAGR of more than 4.5% throughout the forecast period 2022-2027. COVID-19 had an adverse impact on the market, which was reflected in fewer drilling operations in 2020, owing to low oil and gas demand during the outbreak. Sub-Saharan Africa experienced its first recession in 25 years after the global Covid-19 virus hit, severely affecting fossil fuel production, supply chains, and foreign direct investment. Growing demand for cleaner energy sources and the use of natural gas to generate electricity, heat buildings, heat water, drive industrial furnaces, etc., as well as the need to reduce carbon emissions and government subsidies for using natural gas, are driving the market to grow. The risk of leaks during transportation and storage and the high cost of storing natural gas are among other factors that could limit the market's growth.
- The increasing usage of natural gas in power generation and automobiles reduce GHG emissions. Therefore, governments are moving toward cleaner energy sources driving the market.
- The African region is still dependent on wood and other conventional fuels like petrol and diesel for domestic use, power generation etc., increasing economies of a number of countries in the region is expected to provide significant opportunity as natural gas usage is expeetcd to rise with it.
- Nigeria is expected to dominate the market during the forecast period due to its many proven oil reserves available in Africa, the increasing residential construction activities, and growing oil and gas production.
Africa Natural Gas Industry Segmentation
Africa natural gas market report includes:
| Geography | |
| Nigeria | |
| Algeria | |
| Egypt | |
| South Africa | |
| Rest of Africa |
Africa Natural Gas Market Size Summary
The Africa natural gas market is poised for significant growth, driven by increasing demand for cleaner energy sources and the use of natural gas in power generation and transportation. The market is recovering from the adverse impacts of the COVID-19 pandemic, which had led to reduced drilling activities and a recession in Sub-Saharan Africa. The shift towards natural gas is supported by government subsidies and initiatives aimed at reducing carbon emissions. Despite challenges such as the risk of leaks during transportation and high storage costs, the market is expected to expand as economies in the region grow and the reliance on conventional fuels decreases. Nigeria is anticipated to lead the market due to its substantial natural gas reserves and ongoing investments in gas infrastructure.
Natural gas is becoming a crucial component of Africa's energy landscape, with power plants utilizing this resource offering cost-effective and efficient energy solutions. The region's power generation capacity is set to increase significantly, with natural gas playing a pivotal role, especially in North Africa. South Africa's integrated resource plan highlights the use of natural gas alongside renewable energy sources to meet future electricity demands. Additionally, initiatives like Nigeria's National Gas Expansion Programme aim to enhance the use of compressed natural gas as a transport fuel, further bolstering the market. Key players such as TotalEnergies, Shell, and the Nigerian National Petroleum Corporation are actively involved in expanding the natural gas sector, with projects like the Nigeria-Morocco gas pipeline expected to enhance regional and international gas supply.
Africa Natural Gas Market Size - Table of Contents
-
1. MARKET OVERVIEW
-
1.1 Introduction
-
1.2 Natural Gas Consumption and Production forecast in billion cubic metres, till 2027
-
1.3 Recent Trends and Developments
-
1.4 Government Policies and Regulations
-
1.5 Market Dynamics
-
1.5.1 Drivers
-
1.5.2 Restraints
-
-
1.6 Supply Chain Analysis
-
1.7 Porter's Five Forces Analysis
-
1.7.1 Bargaining Power of Suppliers
-
1.7.2 Bargaining Power of Consumers
-
1.7.3 Threat of New Entrants
-
1.7.4 Threat of Substitute Products and Services
-
1.7.5 Intensity of Competitive Rivalry
-
-
-
2. MARKET SEGMENTATION
-
2.1 Geography
-
2.1.1 Nigeria
-
2.1.2 Algeria
-
2.1.3 Egypt
-
2.1.4 South Africa
-
2.1.5 Rest of Africa
-
-
Africa Natural Gas Market Size FAQs
What is the current Africa Natural Gas Market size?
The Africa Natural Gas Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)
Who are the key players in Africa Natural Gas Market?
TotalEnergies SE, Shell PLC, Sonatrach, Nigerian National Petroleum Corporation and NIPCO PLC are the major companies operating in the Africa Natural Gas Market.
