Africa is entering a new phase in its energy transition, with a wave of gas project approvals and investments stretching from North Africa to sub‑Saharan regions. The continent appears to be moving away from its historic reliance on oil and coal toward a diversified, gas‑led energy model. Yet despite decades of production, intra‑African gas trade remains limited. Infrastructure bottlenecks, underfunded mid‑ and downstream projects, and regulatory frameworks that have prioritized exports over regional supply have slowed progress. Drawing lessons from Algeria and Libya, and looking ahead to platforms such as African Energy Week (AEW), a pathway is emerging for Africa to unlock a true continental gas economy.
Africa’s gas resource base is vast. Algeria, with its extensive reserves and the longest operational pipeline network on the continent, has long dominated the sector. However, this infrastructure has been largely export‑oriented, serving European markets through pipelines and LNG terminals. Many African nations lack the midstream and downstream facilities—such as import‑reception terminals, regasification plants, domestic pipeline grids and gas‑to‑power stations—needed to distribute gas across borders or meet regional demand. Libya, despite holding an estimated 53 trillion cubic feet of reserves and maintaining Africa’s second‑longest pipeline network, faces similar challenges. Outdated infrastructure, limited processing capacity and underdeveloped liquefaction facilities mean that significant volumes of gas are still flared rather than utilized.
Ambitious regional projects like the Trans‑Saharan Gas Pipeline, designed to connect Nigeria through Niger to Algeria and onward to existing export routes, have been stalled for decades. Financing hurdles, political risk and security concerns have prevented progress, leaving many African countries cut off from reliable gas supply.
Financing patterns have also played a role. Historically, investment has flowed toward upstream exploration and export‑focused infrastructure, including LNG terminals and pipelines to Europe. Midstream and downstream projects have been neglected, in part because they offer slower returns and involve more complex political considerations. Algeria’s pipeline network, for example, is designed to link production zones to LNG complexes and export conduits such as the Medgaz pipeline to Spain and the Trans‑Mediterranean Pipeline to Italy, rather than to neighboring African markets. To rebalance the sector, financing must pivot toward mid‑ and downstream infrastructure. Institutional investors, development banks and public‑private partnerships will need to align behind a value proposition centered on energy access, industrial growth and regional integration.
Policy alignment is equally critical. Many African governments have focused on monetizing gas through exports rather than fostering regional trade. Building a continental gas economy requires a shift toward a “gas value chain” mindset. This includes incentives for cross‑border trade, preferential tariffs for gas used in power generation and industry, harmonized pricing frameworks, regional trade agreements and support for shared infrastructure projects. Such measures would encourage domestic consumption and regional distribution, strengthening Africa’s energy independence.
Platforms like African Energy Week are central to this shift. AEW brings together policymakers, investors, operators and financiers to discuss not only upstream production but also midstream and downstream infrastructure, regulatory reform and cross‑border trade. The upcoming AEW 2026, scheduled for October 12–16 in Cape Town, will take place against the backdrop of rising energy demand across Africa, projected to grow sharply by 2040. The event will provide an opportunity to advance financing deals, shape pipeline initiatives, explore regional gas‑to‑power schemes and advocate for regulatory reforms. For gas‑rich nations and emerging economies alike, AEW 2026 could mark a turning point—signaling a shift from prioritizing export revenues to building a gas economy that supports domestic industrialization, expands energy access and strengthens regional integration.