Africa is emerging as a leader in the global Floating Liquefied Natural Gas (FLNG) market boom. According to research firm Wood Mackenzie, the continent is at the centre of the current surge in FLNG developments, which is driven by favourable economic and geopolitical conditions.
In 2022 alone, 8.5 million tons per annum (mmtpa) of FLNG projects were given the green light globally. With the presence of favourable conditions, it is expected that up to 20 mmtpa of new capacity will be launched in the next two years. Africa is witnessing a surge in new and planned projects as countries seek innovative solutions for monetizing offshore gas resources.
FLNG offers resource-rich African countries the ability to process gas for both domestic consumption and export within high-risk environments. This makes it an attractive option for these countries, as it removes the risks associated with above-ground challenges such as armed insurgency and infrastructure sabotage. FLNG provides producers with a flexible solution to existing challenges.
Several countries are leading Africa’s FLNG endeavours. Existing facilities in Cameroon have paved the way for the development of two FLNG projects launched by Eni and Perenco in Congo and Gabon in 2022. Additionally, upcoming facilities in Nigeria, Mozambique, and more are set to further strengthen Africa’s position in the FLNG market.
Currently, there are 12.5 mmtpa of FLNG capacity under construction in Africa. By 2026, it is projected that approximately 25 mmtpa of capacity will be operational. This growth demonstrates the significant potential that FLNG holds for the continent in terms of both domestic energy supply and export revenue.
Fraser Carson, Senior Gas Research Analyst at Wood Mackenzie, highlights that with international oil companies, upstream producers, and midstream specialists all moving their FLNG projects towards final investment decisions, the global FLNG capacity has the potential to further increase by 2030.