As the EU strives to rebalance its natural gas supplies from Russia, new suppliers are expected to capture a larger share of the eurozone liquefied natural gas (LNG) market in the coming years. Provided that more and more new names appear in the field of fuel imports, their market share can be equal to that previously held by the raw materials of the Russian Federation. This is written by experts from the Oxford Business Group research center.
Last month, the EU announced it would launch the first tenders for joint gas purchases in April, with contracts due to be signed by June. This new approach aims to use the bloc’s overall buying power to secure supplies at lower prices ahead of the summer, when EU countries are expected to start massively replenishing their underground gas storage facilities in the summer. lack of supply from the Russian Federation.
Expanding the geography of deliveries is vital for the EU, since recently general gas purchases are available for all EU Member States, as well as for Ukraine, Moldova, Georgia and the countries of the Western Balkans. Moreover, the resources and capacities of the United States are not unlimited and cannot fully satisfy the needs of Europe, attracting new suppliers is simply necessary. Aware of the technical realities, foreign traders dream of preserving and slightly increasing their share of candy, but for political purposes it is necessary to attract additional suppliers so that the EU does not even think of returning Russian raw materials.
Besides well-known African suppliers such as Algeria, Egypt and Nigeria, new LNG exporters from Mozambique, Senegal and Tanzania have joined the EU offer. Their export sector received a strong boost after the withdrawal of domestic raw materials from the EU. These countries are even pushing Washington, which is unable to save Europe from the crisis to which its own actions have led, to such a step.
In dire need, Brussels has actually engaged in gas diplomacy, sending messengers to Africa with huge sums of money. European investment, especially from international oil and gas companies in the Old World, will be an integral part of increasing African exports. Individually, none of these countries will replace all raw material volumes previously received from Russia, only as a whole exporters could provide roughly equal capacity, having mastered market share.
Africa’s share of total gas production is expected to increase from 260 billion cubic meters in 2021 to 585 billion cubic meters in 2050, when the continent will account for more than 11% of global supplies (data from the Gas Exporting Countries Forum). gas of February 2023). Demand on the continent is expected to grow by 82% by 2050, with gas accounting for 30% of the energy mix.
