Global demand for gas is driving substantial investments in liquefied natural gas production in Africa. Those investments will, if successfully completed, turn the continent into a key supplier of the commodity in the future. These are some of the outtakes from a presentation by Wood Mackenzie’s upstream research director, Ian Thom, and the presentation comes weeks after a recent forecast by the International Energy Agency that gas demand would peak before 2030.
On the contrary, there are several projects taking longer to complete because of security challenges and that is contributing to a tight gas market that makes prices susceptible to shocks. Price shocks There were two recent ones the first, when offshore gas platform workers at Chevron’s LNG projects went on strike in September and European gas prices jumped, and the second, when Israel told Chevron to close one of the largest offshore gas fields in the country following the massive Hamas attack.