The African Energy Chamber (AEC) has released its Q2, 2022 outlook
providing detailed insight into current and emerging trends, challenges and opportunities, and how the African energy sector is bouncing back following the onset of the COVID-19 pandemic.
The report identified Nigeria as retaining leadership position as top gas producer in Africa with potential of expanding interest in parts of Europe.
The AEC report on gas markets, posits that the uncertainty over Russian supplies and sanctions on energy exports are expected to result in higher European liquefied natural gas (LNG) spot prices of over US$30/MMBtu as the expectation is that Europe will import large volumes of LNG.
It said that the exit of operators from Russia is expected to result in a revised development timeline for multiple projects in Russia, leading to a drop of cumulative output of 1435 bill cubic meters over the years 2022 – 2030.
The report further stated that the sanctions and production drop are also expected to result in a global LNG demand-supply gap of about 120 million tons per annum by 2030; and that Nigeria, Algeria and Egypt will maintain their positions as the leading gas producers, contributing to over 80 per cent of output.
Further details are provided about LNG exports, trade relations in 2022 and beyond and new and upcoming discoveries.
Expanding on the Q1 report, the Q2 outlook provides a more detailed overview of the African energy industry, looking at exploration trends and challenges, expectations in 2022 and beyond as well as mergers and acquisitions – all valuable insight and integral for players across the entire energy value chain. With the continent’s energy sector undergoing significant changes driven by global markets fluctuations, post-COVID-19 capital expenditure trends and the ongoing Russia-Ukraine conflict, the report is not only helpful but critical for private and public sector operations, regional and international investors as well as African decision-makers and policymakers.
“The AEC is proud to announce the release of its second report this year, the State of African Energy for Q2, 2022. For investors, the report is critical for gaining the insight needed to sign deals and form partnerships, allowing an expansion across the African continent. While for African players, the report highlights new opportunities, identifies ongoing challenges and lays the foundation for growing Africa’s energy markets.
By downloading the report, stakeholders will be able to advance their footprint across Africa while bringing African energy to the world,” states NJ Ayuk, Executive Chairman of the AEC.
Representing the voice of the African energy sector, the AEC is committed to driving investment and development across the continent’s various energy segments.
In 2022, with shifts in global markets and new discoveries, projects and developments in Africa, the role the continent’s resources play in addressing global energy security has been emphasized.
With the report, stakeholders will not only be able to gain an understanding of the sector itself but secure the information necessary to make informed decisions regarding African energy.
Following the Q1 edition, the Q2 outlook provides an oil and gas market outlook and insight into African exploration, mergers and acquisitions activity and upcoming oil and gas economies of Africa.
The AEC’s report represents the foremost document whereby critical information can be attained about the state of play of Africa’s energy sector.
For oil market players, the report provides insight into oil prices and demand, detailing how the cost of Brent crude is currently estimated at $111 on the back of resilient demand and the risk of a full Russian oil embargo; how supply is expected to exceed demand in Q2, 2022 and how the negative economic impact stemming from Russia’s war in Ukraine, the ongoing energy crisis and soaring inflation is expected to drive a downside regarding oil demand revision of 800,000 barrels per day for the year 2022; while identifying Africa’s top producers in 2022 and future production trends.