Africa's New Oil and LNG Projects to Boost Asian Supply Options
New oil and LNG projects in Africa could provide additional supply options for Asian buyers amid growing demand. African crude and LNG production is expected to increase, driven by new developments in East Africa.
Ha Nguyen, executive director at S&P Global Energy, asked if Africa can move from being an optional supplier to a strategic one. He noted that growing geopolitical tensions are increasing interest in African crude and LNG among Asian buyers.
Gilbert Kamuntu, chief commercial officer of Uganda National Oil Co., highlighted Uganda's upcoming Pearl Sweet crude project. He said comparable grades have historically seen strong demand in Asia-Pacific markets, with around 75% being placed in the region.
Africa's LNG sector is also expected to strengthen its role in Asian energy markets. Africa currently produces 40 million-50 million mt/year of LNG, but output could rise to 90 million-100 million mt/year within four years as new projects come online.