A US$245 billion planned expansion of gas infrastructure is underway in Africa, representing an enormous stranded asset risk especially as much of this gas is intended to correct for Europe’s shortterm energy crisis resulting from Russia’s invasion of Ukraine.

The war has precipitated increased investment plans in African gas across the upstream and midstream value chains, with countries such as Mozambique, Nigeria, and Tanzania on the brink of making major investments in gas export infrastructure. But these multi-billion dollar bets risk being driven by Europe’s renewed but temporary interest in natural gas, which
will likely lead to stranded assets and a failure to invest as strongly as necessary in Africa’s domestic generation capacities and renewable energy future.

Planned investment in gas pipeline and LNG export infrastructure competes with domestic demand for gas and much needed renewable energy investment for Africa to realize universal access to clean, affordable, and reliable energy.

This report describes existing and planned LNG terminals, gas pipelines, and gas plant projects, including the use of gas in Africa’s electricity generation.

Please read the full report here.