Africa's Pipeline Boom: Meet the New Energy Hubs for Europe
Africa's midstream sector is experiencing significant growth as producers invest in pipeline infrastructure to meet increasing demand, particularly from Europe. In response to global supply issues and a European ban on Russian gas imports, Africa's top oil and gas producers are building out pipeline infrastructure to export product.
The East African Crude Oil Pipeline (EACOP), majority-owned by TotalEnergies, is nearing completion with an investment value of nearly $3.5 billion. The 1,443-kilometer pipeline will deliver oil from Uganda's Lake Albert fields to the Tanga marine terminal in Tanzania.
The Nigeria-Morocco and Trans Saharan Gas Pipeline (TSGP) projects are also underway, with a total investment value of up to $25 billion and a total length of 6,300 kilometers. These pipelines will deliver previously stranded gas in west and north Africa, as well as crude oil from the East African Rift.
The Strait of Hormuz blockade and European ban on Russian gas imports have created a significant impetus for midstream project sponsors to accelerate front-end engineering design (FEED) studies, get traction on financing, and secure intergovernmental agreements. By 2027, these pipelines will deliver emerging West African molecules to markets in Italy, Spain, Germany, and the Netherlands.