The International Gas Union (IGU) has published a comprehensive roadmap titled "Gas for Africa," aimed at accelerating natural gas development across the continent to drive economic growth and industrialisation. The report serves as a call-to-action, warning that without accelerated innovation and stable regulatory frameworks, Africa's vast natural gas resources will remain a missed opportunity. It positions gas as a multifaceted solution for addressing energy poverty, stimulating industrial development, and facilitating a transition to a low-carbon future.

The African Gas Context and Imperative

Africa's energy situation is characterised by stagnation, with per capita energy supply unchanged over 40 years and electricity consumption per head declining over the past two decades. Despite holding about 17.2 trillion cubic metres of proven gas reserves, the continent monetises less than 250 billion cubic metres annually. Its gas consumption is minimal compared to other regions, standing at 178 billion cubic metres last year versus 469 billion cubic metres in Europe. The IGU cautions that failing to address this "gas conundrum" risks leaving Africa behind in the competitive global gas market.

Eight Principles for Unlocking Africa's Gas Potential

The roadmap outlines eight core principles to harness Africa's untapped gas reserves effectively.

Futureproof Infrastructure: The first principle advocates for developing low-carbon, modular gas infrastructure that can be repurposed. Projects combining climate readiness with flexible market integration are deemed more likely to attract capital and deliver long-term development impact.

Mobilising Domestic Finance: A shift in project financing is required, emphasising the mobilisation of domestic resources such as pensions, sovereign wealth funds, and insurance pools. Stronger local financial institutions and pipelines of bankable projects are key to scaling smaller gas ventures and embedding resilience across the ecosystem.

Safe and Stable Investment Climate: A pivotal element for growth is establishing a safe and stable investment climate. Regulatory frameworks must address risks across the gas value chain—including currency, political, and demand risks—and optimise fiscal regimes, with state-owned companies playing important roles.

Regional Energy Networks: Developing sub-regional and regional gas and energy networks is essential. This approach leverages economies of scale to justify investments, address energy imbalances, and create larger demand centres to support lower-carbon infrastructure. Success requires harmonised gas pricing frameworks, tariff structures, and infrastructure standards.

Industrial Clusters: Building manufacturing clusters near energy sources and raw materials is another critical factor. Industrial clusters close to gas fields can rely on a dedicated power plant and offer opportunities to process additional gas into LPG or LNG.

Small-Scale, Modular Projects: Due to a lack of receiving, processing, and distribution infrastructure, initial investments should favour small-scale, modular, and flexible projects. This strategy has proven successful for pre-developing gas markets and unlocking suppressed demand before larger infrastructure investments are made.

Market Reform: Reforming electricity markets is crucial to encourage gas investments. This includes restructuring markets, increasing sector liquidity, and improving operational efficiencies. Only well-functioning electricity markets can bridge Africa's energy deficit and develop resilient power systems. Additional reforms may involve removing subsidies, unbundling state-owned utilities, and encouraging privatisation.

Carbon Pricing Mechanisms: The final principle calls for establishing carbon pricing mechanisms to unlock new financing for low-emission gas infrastructure and accelerate decarbonisation. As carbon-linked business models grow—particularly in clean cooking and flare reduction—Africa must build frameworks to access this capital. A functioning carbon market can make switching to gas more economically attractive and support investment in carbon capture, methane mitigation, and associated gas monetisation.

The "Gas for Africa" report was published by the IGU