Africa's Oil and LNG Projects Gain Strategic Importance for Asian Buyers
Africa's emerging oil and LNG projects are gaining strategic importance for Asian energy buyers as disruptions to traditional supply routes increase pressure on refiners and governments to diversify their sources of crude and gas.
Discussions at the Asia Pacific Petroleum Conference in Singapore this week highlighted the growing relevance of African supply, with Uganda's first oil, new developments in Angola, and LNG projects in Mozambique among the projects that could provide Asian markets with additional supply options.
The shift comes as the disruption around the Strait of Hormuz has exposed the concentration of Asian energy supply chains. Before the current crisis, about 75% of Asia's Middle Eastern crude imports passed through the strait, according to S&P Global Energy. By the third quarter of 2026, that share had fallen sharply, with flows fluctuating between 10% and 20%, according to ship-tracking data cited by the company.
Africa is positioned to benefit from this search for supply diversity, although the commercial opportunity is more complicated than simply redirecting barrels eastwards. African crude generally travels longer distances to Asian refineries than Middle Eastern supply, raising freight, insurance, and shipping requirements.