Is Africa ready for global energy demand?

As Europe turns to Africa to meet its gas demand, Oliver O'Heequilly, an associate partner at McKinsey & Company, voices concerns over the infrastructure challenges hindering deals in the energy sector. O'Heequilly emphasizes the importance of aligning the supply channel with the increasing demand for gas across the continent. Africa boasts substantial natural gas resources, with Nigeria alone possessing over 210 trillion cubic feet of gas reserves. However, the lack of infrastructure poses a significant obstacle in fully tapping into these resources. With the global gas demand surging due to the conflicts in Ukraine, African countries have a unique opportunity to fill the supply gap. Nonetheless, the continent must address its infrastructure deficiencies to capitalize on this potential. O'Heequilly highlights the ongoing projects such as the Niger-Morocco gas pipeline but recognizes that quick solutions such as floating LNG facilities could offer more immediate relief. The political will to leverage Nigeria's gas wealth appears promising, with initiatives like the 'decade of gas' signaling a proactive stance towards developing the sector. In a global context, Africa's minimal CO2 emissions do not exempt it from the climate change battle. Embracing gas as a transition fuel, particularly in electrification efforts, could be pivotal in reducing emissions from traditional diesel and petrol generators. O'Heequilly stresses the importance of gas infrastructure projects to bridge the gap between supply and demand, given Africa's substantial gas reserves and pent-up domestic demand. While countries like Morocco, Egypt, and Senegal attract European investments in their energy sectors, the local industry players in Africa must step up to seize the opportunities. The continent's vast gas reserves can fulfill the demand, but the focus must now shift towards implementing critical infrastructure projects to bring the gas to market effectively.