Natural gas is set to become the second-largest fuel in the world’s energy mix – OPEC

• Natural gas is set to become the second-largest fuel in the world’s energy mix
• Gas consumption will rise, which will slow down climate change
• African gas projects are currently underway

By 2030, natural gas is expected to exceed fuel as the second-largest fuel in the world’s energy mix, according to predictions from the Organization of Petroleum Exporting Countries (OPEC). This projection was given by OPEC in its October 31-released World Oil Outlook report.

The analysis predicts that demand in all sectors will help the gas demand rise by 19.6 mboe/d to 56.3 mboe/d in 2045. Additionally, it is anticipated that natural gas would eventually replace coal and conventional biomass as a fuel of choice in the coming years.

The long-term promise for natural gas is based on adequate gas resources and its relatively low CO2 emissions, which is the reason for the anticipated increase in gas consumption. For this reason, a lot of nations want to increase the proportion of gas in their energy mix. Natural gas’s share of the world’s energy mix would rise from 23% in 2021 to about 24.5% in 2045.

Growth will be sparked by Nigeria and other OPEC countries:  According to the outlook research, OPEC members like Nigeria will drive the increase in global gas consumption. As a result, the proportion of non-OECD nations in global gas consumption will increase from 55% in 2021 to 66% in 2045.

Natural gas will be crucial in ensuring that more people in Africa have access to modern energy and diminishing the traditional usage of biomass for heating and cooking.

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Gas consumption will rise, which will slow down climate change

In order to address climate change, more gas will be used. According to OPEC, natural gas, the cleanest hydrocarbon, is the ideal regional option for Africa in the fight against poverty and climate change, as well as one of the finest solutions for sustainability.

Particularly in sub-Saharan Africa, natural gas is thought to represent Africa’s best chance for a long-term energy supply solution that will help reduce energy poverty and improve quality of life.
Natural gas can offer African countries accessibility, affordability, and dependability as a source of energy for sustainable development.

The prospects for LNG exports to Africa are bright: Africa is anticipated to produce more than 9% of the world’s natural gas supply in 2050, up from 6% in 2020, according to the OPEC projection.

Africa’s gas production is expected to rise from about 230 bcm in 2020 to roughly 520 bcm in 2050, growing at an average annual rate of 2.8%. This massive development will expand Africa’s contribution to global natural gas supplies and its significant role in gas production.

In Nigeria, Algeria, Angola, Cameroon, Egypt, and Equatorial Guinea, there are now roughly 71.1 million tons per annum (mtpa) of LNG liquefaction facilities.

African gas projects are currently underway

Current gas projects in Africa include 18.8 mtpa in Mauritania, Mozambique, and Senegal that are under construction, 9 mtpa in Congo and Nigeria that have received a final investment decision (FID), and 26.4 mtpa that are at various stages of front-end engineering design (FEED) throughout the continent. In addition, there are 41.2 mtpa of potential and stalled projects and 64 mtpa of proposed projects.

The International Energy Agency (IEA) had previously expected that by 2025, the continent’s natural gas consumption will increase by an average of 3.3% annually. Algeria, Egypt, and Nigeria’s industrial and energy needs are what are mostly driving this. The growth rate of the sub-region, which averages 6% annually (excluding Nigeria), is driven by the expansion of domestic production in West African nations. However, the market’s entire size will only reach about 14 bcm annually in 2025.