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Demand for African natural gas increases, driven by Russian invasion of Ukraine

6 Jul 2022 16:23 reported by Stanley Wang

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The European countries are looking for alternative natural gas sources to reduce reliance on Russian gas after the Russia-Ukraine war began.

Sub-Saharan Africa owns undeveloped liquified natural gas (LNG) potential, which can be delivered to Europe by ships.

This year, Italy signed LNG deals with Angola and Congo. Apart from that, Germany discussed Senegal for gas, too.

However, if the gas prices drop, these new African LNG projects might be hard to compete with the US and Qatar’s producers, which have lower production costs.

In addition, climate change impacted Africa seriously, so developing natural gas might make the situation worsen. Also, the violent insurgency spread to many regions in Africa. As a result, these factors might be disadvantages for African LNG development.

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