9th Global Gas Outlook 2050 highlights Africa’s natural gas potential
Primary energy demand in Africa is forecasted to grow at an annual rate of 0.6% through 2050, accounting for a quarter of the global increase.
Notably, Africa is set to lead global natural gas demand growth at a rate of 3% annually – the fastest worldwide.
As global interest in African hydrocarbons rises, GECF member countries – including Angola, Algeria, Libya, Nigeria, Senegal, Mauritania, Egypt and Mozambique – are well-positioned to drive economic expansion and maximize energy monetisation strategies.
Natural gas, when combined with decarbonization technologies such as carbon capture, utilization and storage, provides a viable pathway to a balanced and sustainable energy transition.
This is according to the Global Gas Outlook 2050 report.
Recently released by the Gas Exporting Countries Forum (GECF), it is an in-depth analysis of the future of natural gas that explores key trends and developments in the natural gas market.
According to the outlook, key drivers of natural gas growth include favourable policies, increasing global LNG production and rising demand for power generation.
It says that the global natural gas trade is transforming, with LNG taking centre stage.
LNG trade is projected to double, reaching 800 million tons by 2050. To support this expansion, cumulative global investments in natural gas are expected to total $11.1 trillion by 2050, with $10.4tr allocated to upstream development and $700bn to downstream infrastructure.
Crucial period for Africa
The Global Gas Outlook 2050 was launched to coincide with a crucial period for Africa’s natural gas industry.
Africa’s natural gas reserves account for approximately 6% of global supply, with an expected growth of 15% by 2030.
This expansion, while moderate compared to other regions, underscores Africa’s LNG potential, particularly as global gas demand is projected to increase at a CAGR of 1.5% until 2030, with LNG representing approximately 10-15% of that demand.
Diverse energy mix
“The findings of the report confirm our argument that only a diverse energy mix tailored to the specific needs of various regions can balance affordability, security and sustainability,” states Eng. Mohamed Hamel, GECF executive secretary.
“We are convinced now more than ever that natural gas is not only a bridge to the future, but an integral part of the future.
I would like to emphasise the role of GECF member countries, which play a vital role in meeting the world’s energy needs.
“Their contributions, by 2050, will meet half of all global natural gas supplies.”
Global primary energy demand
According to the report, global primary energy demand is expected to increase by 18% between 2023 and 2050, with no peak in sight.
The global energy mix is diversifying, with natural gas projected to supply 26% of total energy by 2050.
As a result, natural gas demand is set to rise steadily, reaching 5.1 trillion cubic meters by 2050 – a 32% increase from 2023 levels.
This represents the second-fastest growth rate in energy demand after renewables.
Africa, the Middle East and Eurasia are expected to drive nearly 87% of the global natural gas production expansion by 2050.
Insights into the future of global energy markets
“The GECF Global Gas Outlook 2050 provides policymakers, investors and stakeholders with valuable insights into the future of global energy markets.
Today’s launch comes at a pivotal moment,” says Sheik Mishal bin Jabor Al-Thani, GECF executive board member.
“The energy sector must evolve to meet these evolutions while addressing energy security, sustainability and economic growth.
“Despite the world’s tremendous progress, energy poverty remains a pressing challenge and natural gas plays a central role in meeting the world’s challenges,” adds Al-Thani.
