Angola is redefining its energy strategy by placing natural gas at the centre of its economic future, according to the African Energy Chamber (AEC)’s State of African Energy 2026 Outlook.
The report notes that after decades of treating gas largely as a byproduct of oil production, Angolan policymakers are now positioning it as a key driver of exports, power generation and industrial growth.
The shift marks a significant departure from Angola’s long‑standing reliance on associated gas, much of which has historically been reinjected to maintain pressure in offshore oil fields.
While this practice supported crude output, it left substantial gas resources underutilised.
The commissioning of Angola LNG in 2008 was the first major turning point, enabling the country to enter global LNG markets and reduce emissions by capturing gas that would otherwise have been flared or reinjected.
New supply sources are now emerging. Chevron’s Sanha Lean Gas project, which delivered first gas in late 2024, is feeding additional volumes into Angola LNG, while the New Gas Consortium – led by Azule Energy with Sonangol, Equinor and Acrep – is advancing non‑associated gas developments in the Lower Congo Basin.
The Quiluma and Maboqueiro fields are expected to help fill LNG capacity by 2026.
Exploration activity is also gaining momentum.
Azule’s 2025 discovery at the Gajajeira‑01 well and planned drilling in the Congo Fan and Namibe Basin signal renewed confidence in Angola’s gas potential.
However, challenges remain: several pre‑salt discoveries in the Kwanza Basin are stranded due to deepwater costs and the absence of pipelines needed to move gas to shore.
Infrastructure is the sector’s biggest bottleneck.
AEC notes that unlocking Kwanza Basin resources would require new pipelines to Caboledo, onward links to Luanda for domestic use, and possible extensions to Soyo to supply Angola LNG.
High capital requirements and tariff structures have slowed progress, prompting calls for targeted fiscal incentives and blended financing to make midstream projects viable.
At the same time, domestic demand is rising.
The Angola Gas Master Plan outlines major power and industrial projects, including expansions at the Soyo combined‑cycle gas plant and a 2,300‑tonnes‑per‑day ammonia facility which began construction in 2025.
These developments could consume significant volumes of gas, supporting both energy security and industrialisation.
“Gas gives Angola the opportunity to industrialise, stabilise power supply and monetise resources that were previously wasted,” said AEC executive chairman NJ Ayuk, who stressed that early investment in infrastructure and pricing frameworks would determine which countries succeed in the emerging African gas economy.
JN/APA