Infrastructure Development in Africa’s Energy Sector: Opportunities for Growth and Investment
Africa’s energy sector offers huge opportunities for investment and growth through targeted infrastructure development. Despite the abundant hydrocarbon resources on the continent, insufficient infrastructure has historically hindered effective extraction, processing and distribution. Addressing these gaps can unlock huge economic potential and meet rising energy demands in Africa and around the world.
As Africa continues to prioritize the development of energy infrastructure, this year’s African Energy Week (AEW): Invest in the African Energy Conference in Cape Town from September 29 to October 3 – will become an investor, policymaker and industry leaders are key platforms for oil and gas pipelines, storage facilities and gasoline powered projects. The discussion at AEW 2025 will focus on successful infrastructure projects, demonstrate emerging investment prospects, and address financing and implementation challenges.
Pipeline Infrastructure
A key area of investment is developing a wide network of pipelines. These pipelines are essential for transporting crude oil and natural gas from production sites to refineries and export terminals. The proposed Nigeria-Morocco natural gas pipeline is designed to transport approximately 30 billion cubic meters of natural gas from Nigeria to Morocco every year and travel through 13 African countries. The $25 billion 5,600km project is expected to enhance energy security and economic integration across the region, potentially creating jobs, promoting industrialization and providing a stable supply of natural gas for domestic consumption and exports, thus enhancing Africa’s global energy Effective to the market.
LNG facilities
Investing in liquefied natural gas (LNG) facilities is another promising avenue. These facilities enable natural gas processing and export to cater to the global market with high energy demand. Countries such as Mozambique, the Republic of Congo, Nigeria and Tanzania are advancing large-scale liquefied natural gas projects to leverage their large gas reserves. For example, Tanzania’s LNG liquefaction plant is estimated at USD 30 billion, positioning as a key player in the global LNG market.
Improve ability
Africa’s limited refining capacity often requires imports of refined petroleum products, resulting in economic inefficiency. It is crucial to modernize and expand existing refineries and build new investments. Such development can not only meet domestic demand, but also create export opportunities. Angola is developing three new refineries, which will collectively increase domestic refining capacity to 400,000 barrels per day and reduce reliance on imported fuels.
Storage and distribution networks
Strong storage facilities and power distribution networks are essential to maintaining stability in energy supply. Investing in these areas ensures that oil and gas products are effectively stored and shipped to end users, minimizing losses and meeting market demand. Enhanced storage capacity also provides buffers for market volatility, thus contributing to energy security. South Africa’s Richards Bay III project is a $6 million initiative involving the construction of oil storage facilities – aiming to enhance South Africa’s energy storage capacity and improve supply stability. In addition, South Africa is growing significantly in its LPG industry driven by new distribution hubs and rising electricity prices. Companies like Petredec have announced the establishment of the country’s first railway-supplied LPG project to make LPG a more accessible and cost-effective energy alternative.
Power generation and electrification
Utilization of natural gas provides dual benefits for power generation: monetizing gas resources and solving power defects. Investment in gas power plants and related transmission infrastructure can significantly increase electrification rates across the continent. The Temane Temane gas project in Mozambique will begin operations in 2025, using gas from Pande and Temane fields to produce 450 MW of affordable power for state utilities.
AEW: Investing in Africa Energy is the preferred platform for project operators, financiers, technology providers and governments, and has become the official venue for signing African energy transactions. access www.aecweek.com More information about this exciting event.
Distributed by Apo Group on behalf of the African Energy Room.
