Africa Could Expand LPG Sector Five-Fold by 2030

Africa has the potential to grow its LPG market by between three to five times by 2030, according to Fernando Covas, Executive Director & Lead for Europe, CIS and Africa NGL at S&P Global Commodity Insights.

Speaking at a ARDA Week in Cape Town, Covas explained that over 90% of African households rely on biomass for cooking, presenting an opportunity for increased LPG use. Average LPG consumption across the continent is just over 5 kg per person per year, compared to 25–35 kg in more mature markets.

“Africa has several unsanctioned gas projects, which if deployed, can expedite the growth of the LPG sector and the continent’s clean cooking agenda,” stated Covas. “LPG doesn’t require new technology and offers the fastest, most affordable path to reach the market and expand energy access across Africa.”

Over the past six years, Africa has added 1 million tons of LPG production capacity, lagging behind mature markets such as China, which has added 23 million tons. As such, Covas stressed the importance of supportive regulatory frameworks and collaboration among LPG distributors to attract the funding necessary to deploy African projects at scale.