African countries are among those hoping to increase their exports of gas to the European Union, after the EU committed to reduce its reliance on Russian supplies following the invasion of Ukraine.
Russia’s suspension of deliveries to Poland and Bulgaria over their refusal to pay in roubles, the Russian currency, was a stark reminder of the threat facing the Eurozone. Russia has the largest natural gas reserves in the world and is the largest exporter, accounting for around 40% of Europe’s imports.
The EU wants to cut supplies by two-thirds by the end of the year and become independent of all its fossil fuels by 2030.
However, energy economist Carole Nakhle says that with the combined exports of Africa’s big players in the industry – Algeria, Egypt and Nigeria – amounting to less than half of what Russia supplies to Europe, they are “unlikely at the moment to compensate for any losses in Russian supplies”.
“The good news is there will be greater interest in countries that already have the resources to replace Russian gas and Africa is in a very good position. We’re going to see more investment,” she says.
However, this will take time because if various logistical issues in the continent’s major exporters.
Algeria is well positioned to benefit from the EU’s shift in energy policy. The North African country is the region’s biggest natural gas exporter and currently enjoys well developed gas connectivity infrastructure with Europe.