Europe is dependent on Russian gas, but the current armed conflict between Russia and Ukraine is forcing the continent to diversify its energy sources. The African market seems the best solution. Countries such as Algeria, Nigeria, Egypt, and Angola, could help that continent reduce its dependence on Russian gas.

The President of the German-African Business Association, Stefan Liebing, advised German Economics Minister Robert Habeck to look to these African countries, saying that "Germany and Europe must now quickly make up for what they have lost over the last 20 years.

Algeria is the world's 10th largest gas producer. The cargoes of liquefied natural gas (LNG) exported last year were mostly destined for European markets. This makes Algeria one of the top five LNG exporters to Europe.

Since the start of the war between Russia and Ukraine, Algeria has expressed a desire to increase exports, but its reserves are at rock bottom, according to Azure Strategy's Director of Geopolitics and Security, Alice Gower.

"Earlier this year, Algeria's state oil and gas group Sonatrach announced a major investment package of $40 billion over a five-year period, but that does not mean that Algeria can now intervene in the short term," she said. Read more...

A report from the Organization of Arab Petroleum Exporting Countries (OAPEC) reveals that Egypt had the highest annual export growth in 2021. In the second quarter of that year the country exported 1.4 million tons of LNG compared to zero exports the previous year. LNG is also the only gas that Egypt currently exports, as the country is not currently connected to a European pipeline network.

"Currently, Egypt is also running out of LNG export capacity," Gower said, acknowledging that China provides the African country with long-term contracts on good terms. Thus, for Egypt, it makes sense to remain a reliable supplier and maintain its Chinese market share.

Libya's 2020 natural gas reserves amounted to about 1.4 billion cubic meters. However, the infrastructure is insufficient to boost exports, let alone receive payments. With this, the country would give up becoming a substitute supplier of Russian gas to Germany or Europe.

Nigeria seems to be the great hope for Europe. In fact, a mega-project in the country is raising hopes of more gas imports for the Europeans. It turns out that Algeria, Niger and Nigeria have agreed to build the 4,000 kilometer Trans-Saharan Gas Pipeline also known as NIGAL.

Once completed, the estimated $21 billion pipeline will transport up to 30 billion cubic meters of gas per year to Algeria, connecting to the existing network to Europe.

In 2019, Europe imported about 108 billion cubic meters of LNG, of which more than 12 billion came out of Nigeria, according to Khadi Camara of the Germany-Africa Business Association. Africa's largest oil producer is among the ten countries with the most gas reserves globally. Read more...

The official also said that long-term investments and a strategic partnership are needed for Germany and Nigeria to cooperate more closely on gas.

"That is where Nigeria probably cannot be a 'quick fix' to our serious [gas] problem, but rather help Germany diversify energy sources for the future," he noted.

And that path is far from over. When the transition to renewable energy is achieved, other African countries such as Ghana, Mozambique, and Tanzania could become key suppliers of natural gas to Europe.