Midstream, Downstream Projects Driving Africa’s O&G Sector

Africa will deploy 471 oil and gas projects between 2024 and 2028 to target energy security and GDP growth, according to a recent report released by market intelligence firm GlobalData. The downstream sector will account for the highest share of projects with 160 initiatives, while 92 infrastructure projects will be deployed in the midstream sector.

Brass Methanol Plant – Nigeria

Petrochemical company Brass Fertilizer & Petrochemical Company is developing the 3.5 million-ton-per-annum (mtpa) Brass Methanol Plant on Brass Island in Bayelsa State. The $3.5-billion project will use natural gas as feedstock to produce methanol, urea and ammonia to meet local and regional demand. Last month, the Federal Government signed a Gas Supply and Purchase Agreement with energy major Shell for the provision of gas to feed the Brass Methanol Plant. The project will be commissioned in 2024.

Western Desert 11 – Egypt

State-owned Egyptian Natural Gas Company is developing the 600 million-cubic-feet-per-day Western Desert 11 gas processing facility, with commissioning slated for 2024. The $732-million project will enable Egypt to increase its production of natural gas derivatives, including LPG, to meet growing local demand. The facility is Egypt’s fourth gas processing plant in the Western Desert Gas Complex to date.

Train 7 Expansion – Nigeria

LNG company Nigeria LNG is currently implementing its Train 7 Expansion Project to increase production capacity at its LNG terminal on Bonny Island by 35%, from the current 22 mtpa to 30 mtpa. The $10-billion project is set to be commissioned by 2026 and will create 52,000 jobs during construction, operation and maintenance stages.

Buloba Oil Storage – Uganda

The Uganda National Oil Company is seeking partners and investors for its $147-million Buloba Oil Storage Project. The NOC announced the completion of the environmental and social impact assessment for the project in March 2024. The project will have a storage capacity of 25 million barrels of oil and is expected to come online in 2026. The facility will be used as a strategic national fuel reserve unit and to facilitate fuel exports to regional and international markets.

Jorf Lasfar LNG Facility – Morocco

Moroccan conglomerate Akwa Group SA is building a 247 billion-cubic-feet LNG regasification facility in Jorf Lasfar. The $4.6-billion project will be activated in 2027 to bolster the supply of gas locally and across North and West Africa. Morocco is targeting annual gas production of 400 million cubic meters and has various projects underway across its gas value chain, including the deployment of an LNG terminal at the Port of Nador, to advance gas exploitation and monetization.

Tazama Pipeline – Tanzania

Zambian company Tazama Pipelines plans to build the 1,710-km Tazama Pipeline, also referred to as the Tanzania-Zambia Crude Oil Pipeline. The pipeline will enable the transportation of crude oil from international markets, starting from the Port of Dar es Salaam in Tanzania to the Indeni Petroleum Refinery in Ndola, Zambia. The $2.5-billion project will be operational in 2027 and falls under efforts by Zambia to strengthen its energy supply to meet growing demand from mining and manufacturing sectors.

Namibe Phase 11 – Angola

Angolan firm Namibe Refinery Complex (Namref) plans to build the Namibe Topping Refinery in Angola to enhance the country’s refining capacity. The project will require $8.9 billion to develop, has a planned capacity of 8 million barrels per day and is expected to come online in 2028. Angola is undertaking a series of downstream projects, including new refineries at Lobito, Soyo and Cabinda, to ensure regional energy security and reduced refined petroleum product imports.