BUSINESS
EXPERTS SEEK MORE GAS PRODUCTION AND INFRASTRUCTURE ACROSS WEST AFRICA
West Africa’s ability to meet its growing energy needs will depend largely on increasing natural gas production and developing the infrastructure required to process, transport and distribute the resource, stakeholders have said. The region has significant gas reserves, but inadequate investment in pipelines, processing facilities, storage systems and distribution networks continues to limit the ability of several countries to turn those resources into reliable energy and broader economic opportunities.
Stakeholders in the energy sector have therefore called for greater investment across the entire gas value chain, particularly in production and midstream infrastructure. They noted that having large reserves alone would not be enough to address electricity shortages, support industries or improve access to cleaner cooking and transportation fuels if gas could not be efficiently moved from producing areas to consumers. Stronger infrastructure would also help reduce gas that is stranded or flared and allow more of the resource to be used within African economies.
Nigeria remains central to the region’s gas ambitions because of its large reserves and existing production base. The country’s Decade of Gas initiative, launched in 2021, seeks to expand the role of gas in power generation, industrialisation, transportation and other areas of the economy. However, industry reports have identified infrastructure shortages and weaknesses in the gas market as major constraints on production growth. Projects such as the Ajaokuta-Kaduna-Kano pipeline are expected to improve the movement of gas to northern Nigeria and support additional power generation and industrial activity when fully developed.
The wider West African market also faces challenges linked to financing, project bankability and weak infrastructure. Gas projects require significant upfront investment, while uncertainty around demand, payment systems and the financial condition of major off-takers can make it difficult to secure funding. Stakeholders have consequently stressed the need for stronger regional cooperation, improved investment frameworks and financing structures that can support pipelines, processing plants and other facilities required to connect gas producers with domestic and industrial consumers.
The push for increased gas investment comes as African countries seek to expand electricity access, strengthen industrial production and improve energy security while managing the transition towards lower-carbon energy systems. For West Africa, developing gas infrastructure could provide additional support for power systems and industries while renewable energy capacity expands. Stakeholders therefore believe that coordinated investment in production, transportation and distribution will be critical to ensuring that the region’s gas resources contribute more effectively to economic development and energy security.