Energy Demand to Double by 2050, Says Angola Oil & Gas (AOG) 2024 Ministerial Panel

Energy demand is projected to increase two-fold by 2050, a Ministerial Panel at the Angola Oil&Gas conference – sponsored by SLB – underscored. The panel noted that this is largely due to a rise in population growth as well as increased economic activity across developing countries. 

Delivering a keynote ahead of the Ministerial Panel, Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF), highlighted the potential natural gas offers for addressing this demand. Countries such as Angola – which has been producing gas for several years – are well positioned to leverage partnerships with regional neighbors to enhance petroleum trade, while collaborating with partners on new projects.   

“The GECF projects that natural gas demand will increase 36% by 2050. It is the fastest growing [type of] energy after renewables. Energy demand is projected to more than double by 2050 while primary energy consumption is projected to increase 20% by 2050. We call on African institutions to lead in African gas development,” stated Hamel.  

As demand continues to rise, Africa will face a significant challenge – accessing the requisite capital to bring new production online. The African Petroleum Producers Organization (APPO) – in collaboration with the African Export-Import Bank – has devised a solution to enhance capital availability for African energy projects: the African Energy Bank.  

“We need one more member country to sign the ratification agreement before its finalized. In terms of establishment, we have already achieved this. In July, we selected the headquarters for the bank: Nigeria. The last challenge was raising the funds. I am pleased to say that even before we signed the establishment agreement, we were able to raise 45% of what we needed for capital for the bank. I want to thank Angola for being part of that,” stated Dr. Omar Farouk Ibrahim, APPO Secretary General.  

For both emerging and mature producers in Africa, the launch of the African Energy Bank offers a strategic opportunity to advance oil and gas projects and meet rising demand. According to Diamantino Azevedo, Minister of Mineral Resources and Petroleum of Angola, “This is a business moment. We have to start being more independent. Economic relations between African countries needs to be prioritized. There is a great opportunity for us to create business prospects and drive projects with our neighbors.” 

For up-and-coming producers such as the Democratic Republic of Congo (DRC) and Namibia – both of which are seeking investment to accelerate exploration – lessons learnt from Angola will support project development.  

Aimé Molendo Sakombi, Minister of Hydrocarbons of the DRC, said that “It is good to be in Angola, a pioneer in hydrocarbons. We are here to learn. Today we signed a treaty for the governance, production and exploration of Block 14. We are making it more operational and are waiting for the ratification. This will follow the approval of the two heads of states. Chevron will be the technical leader and will provide a timeline of production.”  

Similarly, Namibia aims to leverage its partnership with Angola to support oilfield development, strengthen its logistics sector while developing local capacity. Kornelia Shilunga, Deputy Minister, Ministry of Mines and Energy of Namibia, said that “We are the frontiers. Oil and gas is a new sector for us as Namibia but we are committed to collaborating. Since the discoveries in the Orange Basin, we have embarked upon a learning exercise, learning from others that have come before us and from experts in the industry. We have made various visits to such countries, including Angola.”  

Distributed by APO Group on behalf of Energy Capital&Power.