OVER half of future oil and gas capital expenditure in Africa will be directed toward fast-tracking the development of undeveloped gas resources in the short- to medium-term, according to energy market data and analytics solutions provider Wood Mackenzie. As Africa seeks fresh investments to harness the full scope of its energy resources, Wood Mackenzie returns to the African Energy Week (AEW): Invest in African Energy conference – Africa’s premier event for the energy sector – as a Silver Sponsor and Knowledge Partner.
In line with its commitment to driving African energy sector growth, Wood Mackenzie publishes a series of African outlook reports, providing real-time data and highlighting the latest trends and investment opportunities shaping the African commodities and energy industry. In its Energy Transition Outlook: Africa report released February 2024, the firm showcases a base case scenario whereby Africa’s primary energy demand will increase by 1.2 times from current levels driven by GDP and population growth.
Realising the role of Africa’s natural gas resources in advancing energy security and clean cooking access, African countries are ramping up activities across the gas value chain. Last March, Australian independent Invictus Energy announced a gas and condensate discovery at the Mukuyu-2 well in Zimbabwe, while Italian multinational Eni found the giant light oil, gas and condensates Calao field in Block C1-205 offshore Ivory Coast. One month later, Libya’s National Oil Company made a gas find at the Al-Lahib Field, while Shell made its fifth successive discovery in Namibia’s offshore Orange Basin. With exploration accelerating across frontier and mature basins, in-depth market analysis from Wood Mackenzie will be crucial in providing global investors with real-time insights on the state of play of Africa’s upstream industry.
Meanwhile, African countries are expanding their respective oil and gas sector policies to attract new investments and create more favourable conditions for global industry players. The Republic of Congo announced plans last May to finalise a new Gas Master Plan aimed at maximising gas-focused investments, while South Africa’s Ministry of Mineral Resources and Petroleum published a draft Gas Master Plan last April, seeking to bolster investment, infrastructure development and the supply of gas for domestic use. At last year’s edition of AEW, Wood Mackenzie highlighted investment opportunities within Nigeria’s oil and gas industry, emphasising the role of the Petroleum Industry Act and Decade of Gas initiative in positioning Nigeria as a leading gas investment destination. As a Knowledge Partner to AEW: Invest in African Energy 2024, Wood Mackenzie will build on these insights, providing the latest updates and enabling global stakeholders to navigate changes to Africa’s regulatory frameworks.
Within Africa’s renewable energy sector, Wood Mackenzie acts as the go-to source for market intelligence, helping investors tap into Africa’s clean energy potential and lending insights into current and planned solar, wind, green hydrogen, geothermal and hydropower projects. As Africa fast-tracks renewable energy penetration – with countries like South Africa, Namibia, Mauritania and Egypt pioneering green hydrogen production – the firm says its first-hand data will prove vital for connecting global investors with new project developments.
“Wood Mackenzie’s insights into African commodity markets have given the continent a competitive edge when it comes to attracting global investments. As African countries focus on harnessing both hydrocarbon and renewable resources for energy security and industrial growth, Wood Mackenzie’s consulting, research and supply chain intelligence will be crucial in facilitating beneficial outcomes for African energy developers and global investors,” said NJ Ayuk, executive chairman of the African Energy Chamber.
