Despite producing 8% of the world’s oil in 2020, Africa has vast undiscovered oil and natural gas richness and has the potential to become a significant player in the energy sector. Approximately 428 of Africa’s largest oil and gas projects are anticipated to begin operating in the region between 2021 and 2025, making it a swarm of activity throughout the following ten years. Africa’s abundant oil and gas reserves, which make up 7.1% of the world’s estimated oil and gas resources, are essential to the continent’s commercial and social growth and are expected to spur development in all regions. Africa’s largest current and future oil and gas projects are listed below.
Africa’s Largest Oil and Gas Projects and Exploration Activity
Since the local oil and gas business currently confronts substantial obstacles concerning management, local engagement, infrastructure, and the expertise necessary to complete these projects, these initiatives can further flourish the market.
1. Africa’s Largest Oil and Gas Projects in Ghana (Petroleum Refinery)
The Ghana Petroleum Hub, a significant undertaking supervised by Ghanaian President Nana Akufo-Addo, is situated in Bonyere, the country’s Western region, and is estimated to cost $60 billion. Four refineries, five petrochemical industries, infrastructure facilities, and 10 million cubic meters of storage space will all be included in the project, which will take up 20,000 acres of land. Each refinery will handle 150,000 barrels per day. The project started in 2020, intending to support Ghana’s socio-economic potential. The hub’s objectives include:
- Satisfying market growth in the region.
- Developing the local labor force.
- Boosting intra-African commerce.
2. Africa’s Largest Oil and Gas Projects in Tanzania (LNG Liquefaction Plant)
Work on this $30 billion natural gas liquefied facility in Tanzania will start in 2023. By 2028, Shell hopes to have finished the Tanzania LNG plant, commonly known as the Likong’-o-Mchinga LNG project. With the potential to generate 10 million tonnes of LNG annually, the project will become Tanzania’s first megaproject. Five rails will be part of the project, and each one will be able to produce five million tonnes of LNG annually. It will be constructed at Lindi, in Tanzania’s southern region. The Block 2 LNG output, which amounts to about 7.5 million tonnes annually, will be exported to foreign markets by LNG ships. Ten percent or so of the gas coming in Lindi will be used for household purposes, and this amount can generate 8 TWh of power annually. This unique project will significantly contribute to the expansion of Tanzania’s economy with more than 30 years of output.
3. Africa’s Largest Oil and Gas Projects in Mozambique (Rovuma LNG)
The $30 billion Rovuma LNG Terminal is scheduled to start producing LNG in 2025, with FID on the project anticipated by 2023. The Rovuma LNG project, situated about 40 kilometers off the coast of Cabo Delgado in northern, is based on three gas reserves in the Area 4 Block of the Rovuma Basin that is thought to have 85 trillion cubic feet of natural gas. The facility, which will support skills training and generate over 5,000 local career possibilities, is being built and run by ExxonMobil. The Rovuma LNG facility, one of Africa’s largest oil and gas projects, is anticipated to revolutionize the nation’s natural gas sector over the following ten years. It has a plotted annual capacity of 15.2 million tons of LNG. The project’s first stage will involve the development of the Mamba reservoirs in Area 4 and building two onshore trains, each with a 7.6 million ton per year potential for LNG.
4. Africa’s Largest Oil and Gas Project of Moroccan-Nigeria Gas Pipeline
The Nigerian National Petroleum Corporation (NNPC), Algeria’s Sonatrach, which holds 90% of the shares, and the Niger National Oil Company, which owns 10%, are partners in the Nigeria-Morocco gas pipeline project. It will fundamentally alter how the gas business is diversified and how friendly ties are built between nearby nations. The project has a staggering $25,000 million net worth and is expected to produce 30 billion cubic meters of natural gas annually.
The current West African Gas Pipeline, which connects Lagos, Nigeria, Cotonou, Benin, Lomé, Tema, and Takoradi, Ghana, would be extended by this 5,600-kilometer gas pipeline.
Despite being first proposed in 1970, very little to no advancement was made over the following five decades. The pipeline first appeared in planning documents in 2019. The project will begin in Nigeria’s Warri region and travel via Niger and Algeria’s Hassi R’Mel before ending. The Trans-Mediterranean, Maghreb-Europe, Medgaz, and Galsi pipelines will all be connected to that location. It will be able to store 30 billion cubic meters of petroleum gas annually for a net cost of about $13 billion.
5. Africa’s Largest Oil and Gas Projects in Richards Bay (Refinery)
South Africa’s KwaZulu-Natal province is close to Richards. South Africa’s Petroleum Oil and Gas Corporation (SOC) is the organization behind this future project, which is scheduled to operate in 2028. It is the outcome of a combined investment between South Africa and Saudi Arabia, in which Saudi Aramco proposed investing $10 billion in the Richards Bay refinery complex. Due to a non-disclosure agreement between Saudi Aramco and the country’s Central Energy Fund (CEF), little is revealed about the initiative. The crude distillation facility is expected to process 300 million barrels daily.
6. Africa’s Largest Oil and Gas Project of LNG in Mozambique
Modern facilities are being constructed for Mozambique LNG on the Afungi peninsula in the province of Cabo Delgado. On the coast of East Africa, the first stone was set in November 2017.
The project attempts to access Offshore Area 1’s estimated 75 trillion cubic feet of viable natural gas. These natural, renewable, and greener gases will be delivered to multiple markets as part of the project.
The initiative claims to be “dedicated to shared benefit” and will assist Mozambique in several ways, including:
- Promoting socio-economic growth
- Providing practical economic and ecological projects
- Creating jobs for residents
- Operating by the most outstanding ethnic standards, FID was attained in June 2019. Notwithstanding the shift in operatorship brought about by Anadarko’s acquisition, this project is now moving forward at full speed. The initial operations are underway at Afungi, and the displacement operations are nearly finished.
This initiative, expected to engage 15,000 people, will change the job landscape in Mozambique.
7. Africa’s Largest Oil and Gas Projects in CORAL South LNG Facility
The Coral South FLNG plant, positioned in the Rovuma Basin off the coast of Mozambique, will be the first FLNG facility to be built in deep African waters. The Coral South offshore gas field, which has around 16 tcf of resources, will supply gas to the plant with a potential of 3.4 million tons annually (mtpa). The capital spending initiative, spearheaded by Italy’s Eni, is a ground-breaking milestone for both the nation of southern Africa and the continent. The production process is expected to begin in the second half of 2022, following the vessel’s arrival in Mozambique in January.
8. Africa’s Largest Oil and Gas Projects of EACOP in Tilenga
An oil export project called the East African Crude Oil Pipeline (EACOP) is intended to move crude oil from Kabale-Hoima, which is close to Lake Albert in Uganda, to the Chongoleani peninsula, which is close to Tanga port in Tanzania.
The 1,443km-long heated pipeline will have a daily flow rate of 216 Kbd due to the waxy nature of Ugandan oil.
The project promises citizens of Tanzania and Uganda more local employment, infrastructure improvements, and improvements to the two countries’ core corridor.
A USD 3.5 billion expenditure has already been made in EACOP, and overseas participation in Uganda and Tanzania has increased by 60%.
However, the implementation of FID has been put on hold until more political negotiations are conducted.
Although this procedure’s length is unknown, there is no certainty that the project will finally advance. Once granted the all-clear, this project will move forward quickly because contracts have already been issued.
9. Africa’s Largest Oil and Gas Project of Tortue Ahmeyim
The Tortue Ahmeyim project is an oilfield expansion run by BP and is located offshore on the maritime border of Mauritania and Senegal.
TechnipFMC has received a $500 million to $1 billion contract from BP to construct the FPSO unit used in phase 1 of the project.
Around 15 trillion cubic feet of gas are thought to be present in the field. The gas will be supplied and given access in Senegal and Mauritania. The completed project will strengthen the local economy and add jobs to the community.
The gas is tight with little liquid content and contains no carbon dioxide or hydrogen sulfide. It indicates that piping it 130 km to shore should be feasible with little to no profound technology necessary.
10. Africa’s Largest Oil and Gas Projects in Nigeria (Ogidigben Industrial Gas Revolution Park)
The $20 billion Ogidigben Gas Revolution Industrial Park is a scheduled downstream refinery and petrochemical plant expected to be built in Nigeria’s Delta Region. The Nigerian National Petroleum Corporation wholly owns it. The industrial park, which will span over 27 km2, is expected to generate over 250,000 jobs directly and indirectly. It will include fertilizer, methanol, petrochemical, and aluminum plants using Nigeria’s sizeable natural gas quantities as raw material. The project attempts to access the adjacent Odidi, Okan, and Forcados fields’ 18 trillion cubic feet of confirmed natural gas resources.
11. Africa’s Largest Oil and Gas Project Development of Zabazaba and Etan Integration
The Etan and Zabazaba oil resources are situated in OPL 245 offshore Nigeria in the Niger Delta in sea depths between 1,200m and 2,400m. The 300,000km2 delta, which is thought to have 34.5 billion barrels of oil and 93.8 trillion cubic feet of known natural gas resources, is the world’s twelfth-largest oil and gas deposit. It is anticipated that the Zabazaba and Etan Fields together hold 560 million barrels of oil worth. Several companies are involved in the $13.5 billion holistic project, including Shell Nigeria Exploration and Production Company, Eni, and Nigerian Agip Exploration.
12. Africa’s Largest Oil and Gas Projects in Angola (Namibe Refinery Unit)
A new 400,000 barrel per day refinery to be constructed in Namibe, Angola, was planned in 2017 by an investment group formed up by two Russian organizations (75% participation by Rail Standard Service and 25% by Fortland Consulting Company) and regional investors.
A refinery, a rail network, and incorporated infrastructure will be constructed as part of the complex’s scheduled arranged building projects. A residential neighborhood and a power station will then be built and managed.
During three and a half years, 28,000 barrels of refined oil products will be produced in the first stage, and within 11 years, 364,000 gallons per day will be delivered in the final step.
The same year, the president of Angola authorized a joint venture in which the government agreed to purchase 364,000 barrels per day of gasoline and other fuels as output increased over 11 years. In July 2017, the project’s collaborators poured the first brick.
The beginning of the project is anticipated for 2028.
13. Africa’s Largest Oil and Gas Projects in Dangote (Refinery and Polypropylene Complex)
Africa’s largest manufacturing giant, the Nigerian-based Dangote Group, is building a sizable downstream complex in Nigeria’s Lekki Free Trade Zone. One hundred fifty-three thousand gallons of gasoline, 104,000 gallons of diesel, 73,000 gallons of jet fuel, 4,109 gallons of LPG, and 12,300 barrels of fuel oil will be produced daily at the 650,000 gallons per day oil refinery.
It will have the capacity to treat various crude oil grades, including shale oil.
The refinery is reportedly 75% finished, and the petrochemical unit is 60% finished. The building is currently ongoing. In addition to crude distillation (CDU), the refinery will also have residue left fluid catalytic cracking (FCC) units, diesel hydrotreating, constant catalyst renewal, an alkylation unit, a polypropylene unit, utility services, off-sites, and an infrastructure for single-point moorings.
Besides the refinery, a petrochemical plant will contain a blended feed cracker with 1.1 million tonnes per year of ethylene and 350,000 tpa propylene output. The facility will have a 750,000 tpa polypropylene facility as well.
A fertilizer unit will also be part of the complex.
It is anticipated that production will begin in 2021, and the total capacity will reach by mid-year.
14. Africa’s Largest Oil and Gas Projects of Yakaar-Teranga
Yakaar-Teranga, which aims to extract 20 tcf of gas from Senegal at a depth of 3,000 meters, is a result of the achievement of GTA.
The Yakaar-Teranga field is located in the Cayer Profond block, which was found in 2017. Manufacturing is expected to begin in 2024, and the last investment strategy (FID) will be managed by the end of this year.
Two stages will be used to construct it: the first will create 150 million cubic feet per day of natural gas drilling, and the second will involve promoting exports and regional petrochemical refining factories.
15. Africa’s Largest Oil and Gas Project of Banda LNG
The Banda LNG Project is the result of the signature of a non-binding agreement in late 2021 between the Mauritanian government and the American corporation New Fortress Energy to create a national energy center.
Following this, the nation’s energy ministry has ensured gas deliveries from the Banda field by 2024 through New Fortress’s cutting-edge Fast LNG innovation.
New Fortress will use this implementation to provide a local marketplace to transform the nation’s natural gas into LNG. It will be done by Mauritania’s 180-megawatt Somolec power station and a brand-new 120-megawatt factory.
With an anticipated 1.2 tcf of gas, the Banda field serves as a reservoir for the New Fortress project, which gained FID in March 2021. It intends to produce 1.4 MTPA, with a possible running time of 20 months.
16. Africa’s Largest Oil and Gas Project for Marine XII Fast LNG
The Republic of the Congo is moving forward with strategies to commercialize its ten tcf of natural gas deposits by constructing a sizable LNG plant, built by the Italian company Eni in collaboration with the Belgian maritime corporation Exmar and the engineering firm New Fortress Energy. The capital investment project aims to produce 1.4 mtpa of gas using gas from Nene Marine’s related gas well in Block Marine XII. With Eni, New Fortress Energy has already signed a contract to use its ground-breaking Fast LNG technology to complete projects on schedule.
17. Africa’s Largest Oil and Gas Project for the Sanha Lean Gas Connection
Lean gas will be delivered to Angola’s LNG onshore plants using a subsea gas pipeline system as part of the Sanha Lean Gas Connection (SLGC) project. Cabinda Gulf Oil Company created the system, a Chevron branch in Angola, situated in Block 0/14 offshore of Angola. The first supply is anticipated in 2023, with a planned supply volume of up to 480 SCF/day of lean gas.
18. Africa’s Largest Oil and Gas Project of Pipeline Ajaokuta-Kaduna-Kano
The 614 km Ajaokuta-Kaduna-Kano (AKK) pipeline transports gas from Ajaokuta in the center of Nigeria to Kano City. The pipeline, which has a price tag of $2.8 billion, is the first phase of the larger 1,300 km Trans-Nigerian Gas Pipeline megaproject and is being built under Nigeria’s Gas Master Plan. The Nigerian National Petroleum Corporation constructed this pipeline in 2020, and it is expected to be operational by 2023. Three thousand five hundred million cubic feet of gas can be moved through the daily pipeline.
