Africa's LNG industry is booming—Who will reap the dividends?

1. North Africa, led by Algeria and Libya, leverages its geographical advantage to supply pipeline gas and LNG to Europe; 2. West Africa—headed by Senegal, Mauritania, and the Republic of Congo—has seen large-scale deployment of floating liquefaction technology, dramatically shortening project commissioning timelines; 3. In East Africa, Mozambique has fully restarted major onshore liquefaction projects after overcoming security challenges. In this reshaping of the global energy map, Africa’s overall investment logic is undergoing a fundamental shift: the traditional model—relying solely on resource exports for foreign exchange—is gradually fading, replaced by localized utilization of the entire natural gas value chain. A substantial share of newly added capacity is being earmarked to meet rapidly growing domestic electricity and industrial demand. Where is Nigeria investing its $60 billion? As Africa’s traditional energy heavyweight, Nigeria’s transition path draws close attention. The core of its master plan is a sharp increase in domestic natural gas supply: targeting an addition of 1.8 bcf/d by 2026, scaling up to 10 bcf/d by 2027, and reaching 12 bcf/d by 2030. To support this ambitious goal, total project investment is projected to exceed $60 billion. Funds are not flowing exclusively toward conventional export terminals. Nigeria’s National Petroleum Company and other regulatory bodies are vigorously promoting mini-LNG projects—aimed at resolving the country’s long-standing electricity grid coverage deficits. Enterprises deploy distributed gas-fired power facilities to deliver natural gas directly to industrial parks and transport hubs. Analysis suggests this model could break through bottlenecks previously imposed by large-scale pipeline infrastructure, opening stable and lucrative profit opportunities for small- and medium-sized energy investors. The production race between Congo and Senegal Deployment of floating LNG (FLNG) facilities in West African waters is accelerating. Take the Republic of Congo as an example: according to a commissioning announcement released by Italian energy major Eni, its Congo LNG Phase II project successfully commenced operations in December 2025. Its core facility—the floating production, storage, and offloading (FPSO) vessel—was built by China’s Wison New Energy and adds annual capacity of 2.4 million tons. Thanks to accelerated execution, the project is expected to achieve its first commercial export in Q1 2026. Turning attention to the Senegal–Mauritania border region, BP-led consortia are advancing a massive gas field’s Phase II expansion into a critical decision-making phase. With prior infrastructure already completed, Phase II is widely viewed as a low-risk, high-quality asset. Meanwhile, Senegal’s indigenous large-scale gas fields are also rapidly progressing toward commercialization. Analysis indicates intense negotiations may be underway between multinational energy giants and the Senegalese government over the allocation ratio between domestic consumption and export—creating significant demand for associated engineering and infrastructure services. Libya’s return to Europe’s supply map Undercurrents are also stirring along North Africa’s Mediterranean coast. Libya’s National Oil Corporation has set a clear target: boosting natural gas output to nearly 1 bcf/d by the second half of 2026—the primary driver being the restructuring of Europe’s energy supply chain. Libya possesses existing subsea pipelines delivering gas directly to Italy. Analysis suggests that, once land-based infrastructure damaged by internal conflict is restored, Libya could swiftly fill gaps in Europe’s energy supply.

Country Guide: Senegal (Africa)

To date, Senegal hosts three Special Economic Zones (SEZs): the Dakar-Diass Integrated Economic Zone (ZES de Diass), the Diamniadio Industrial Park (ZES de Diamniadio), and the Sandiara Industrial Zone (ZES de Sandiara). The Senegalese Agency for the Promotion of Investments and Major Works (APIX) oversees SEZ development projects. For industrial park development specifically, Senegal has established the Agency for the Development and Promotion of Industrial Parks (APROSI). VI. E-commerce Senegal’s e-commerce market has exhibited rapid growth in recent years. According to data from the United Nations Conference on Trade and Development (UNCTAD), Senegal’s e-commerce market size is projected to reach approximately USD 440 million in 2025. Senegal’s e-commerce growth rate ranks among the highest globally, indicating strong potential for cross-border e-commerce development. The Senegalese government actively promotes e-commerce development, implementing a series of policy measures—including customs procedure simplification and tariff reductions—to attract foreign investors to this market. Major e-commerce platforms operating in Senegal include Jumia, Kayum, KiKUU, and SenShop. In 2021, China and Senegal signed a Memorandum of Understanding (MoU) on e-commerce cooperation. Chinese enterprises are currently implementing or have completed multiple projects in Senegal, spanning wireless networks, smart industrial parks, smart education, smart rural development, international submarine cables, data centers, backbone networks, and metropolitan area networks. VII. Market Development and Recommendations In recent years, China and Senegal have reached consensus on cooperation in culture, industrial capacity, the digital economy, green economy, and infrastructure. In 2024, both sides signed a document granting duty-free access to 98% of tariff lines for goods exported from Senegal to China, continuously expanding bilateral economic and trade cooperation. China has become Senegal’s largest source of financing, largest trading partner, and largest importer of peanuts. Bilateral political and economic relations remain robust and healthy, laying a solid foundation for further market entry by Chinese enterprises. In 2024, China surpassed France to become Senegal’s largest trading partner—a favorable opportunity for Chinese enterprises. Three key areas merit attention when developing the Senegalese market: (1) Machinery and electronic equipment, textiles, and base metals represent sectors with strong demand in Senegal and where Chinese enterprises hold competitive advantages—making them important priorities for market entry. In the miscellaneous manufactured goods sector, Chinese firms enjoy high market share and evident advantages, rendering it another key focus area for Chinese enterprises entering Senegal. (2) Senegal’s highly youthful population provides uniquely favorable conditions for e-commerce expansion. Moreover, the China–Senegal e-commerce cooperation MoU facilitates Chinese enterprises’ market entry via cross-border e-commerce. Concurrently, Senegal’s stable monetary policy and sound business environment provide strong impetus for cross-border e-commerce development. (3) Significant offshore oil and gas resources discovered in recent years along Senegal’s coast have drawn increasing attention to its burgeoning energy sector—creating investment opportunities for Chinese enterprises in supporting infrastructure, such as roads and ports required for petroleum production and export, as well as expansion of the national railway network.

Senegal Power Cuts Highlight Need to Embrace Gas, Minister Says

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Senegal's energy minister cited recent power cuts as evidence for shifting from diesel to natural gas to meet rising demand. The government plans new pipelines and is inviting investors like Eni to evaluate offshore blocks to secure fuel supply.

reuters

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Senegal and Eni Sign MoU to Evaluate Five Offshore Blocks

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Senegal Power Cuts Highlight Need to Embrace Gas, Minister Says

Senegal Power Cuts Highlight Need to Embrace Gas, Minister Says

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