Africa’s Top LPG Markets

According to the African Refiners & Distributors Association, achieving universal access to clean cooking in Africa by 2030 will require transitioning over 405 million people to liquefied petroleum gas (LPG). As a result, several African countries are seeking to capitalize on their natural gas resources and establish LPG infrastructure to bolster consumer access to clean cooking solutions, while ensuring energy security and affordability.

Algeria

Algeria has solidified its position as Africa’s largest LPG producer, leveraging cooperation with global exploration and production firms to exploit its 159 trillion cubic feet of proven gas reserves. The country’s LPG production averages 10 million metric tons per year – of which it exports 7 million metric tons – owing to increased gas output across various projects in the southwest region.

Key LPG production facilities include the Sonatrach-operated Hassi R’Mel, GL1Z and GL2Z gas fields. The NOC has forged new alliances to bolster LPG market expansion, including with Indonesian state-owned firm Pertamina and Spanish energy firm Repsol to invest $800 million towards drilling activities and LPG extraction in the Ourhoud and El Merk oil fields​.

In July 2023, Sonatrach and TotalEnergies signed contracts valued at $740 million to extract over seven million tons of LPG from the Tin Fouye-Tabankort (TFT) II and TFT South fields in southeast Algeria​. In addition, the NOC awarded a $380-million contract to engineering firm Maire Tecnimont for the construction of a 10 million metric-standard-cubic-meters-per-day LPG extraction unit at the Rhourde El Baguel oil and gas treatment complex in northeastern Algeria.

Nigeria

Nigeria stands as Africa’s second-largest LPG producer and one of the world’s fastest-growing LPG markets, supported by its 209 trillion cubic feet of gas resources and rising infrastructure investments across the domestic LPG value chain. Key among Nigeria’s LPG production infrastructure is the Nigeria LNG plant, which achieved an LPG production milestone by surpassing 1.5 million metric tons in 2023.

The country is forging additional partnerships to bolster production and reduce its reliance on imports, which account for 65% of Nigeria’s local demand of 5 million metric tons per year. Energy conglomerate Sahara Energy has unveiled plans to channel $1 billion in investments towards enhancing LPG production in Nigeria over the next five years. Local oil services firm Dateline Energy Services has entered into an agreement with the Nigerian navy to construct a 4,000-ton LPG barge. Expected to commence operations this year, the barge will facilitate the transport of LPG from offshore production sites, including the Bonny Island LNG plant, to seaborne storage facilities on the mainland. Nigeria’s Dangote refinery, which came online earlier this year, will ramp up production to 3 million metric tons of LPG per year once fully operational.

Egypt

Egypt is Africa’s third-largest LPG producer, boasting an average annual production of 1.9 million tons sourced from the country’s 77 trillion cubic feet of natural gas reserves. Egypt has over 11 LPG production facilities including Abu Qir, Ameriya, Abu Madi, WASCO, S. Batra, Trans Gulf and Ras Shoukier. While domestic production meets 60% of Egypt’s LPG demand, Egypt supplements its needs by importing 40% of its LPG through various terminals in Alexandra, El Dekhela, El Sokhna, Feran, Suez and Demit. New projects underway to help meet local LPG demand include state-owned Egyptian Natural Gas Company’s $732-million Western Gas Complex, with a planned capacity of 600 million cubic feet per day. The facility marks Egypt’s fourth gas processing plant and is set to be commissioned this year.

Increasing LPG demand, driven by countries’ efforts to attain energy security and advance gas monetization, has spurred many African nations to pursue accelerated investments in LPG infrastructure. In addition to Africa’s major LPG producers, countries such as Gabon, Kenya, South Africa, Tanzania, Cameroon, Rwanda and Ghana have launched new policies and investment initiatives aimed at improving LPG production and exports.