AEC G20 forum to discuss LPG plans and investment prospects

From vision to reality
Staff reporter
As African countries work to expand clean cooking access across the continent, the upcoming G20 Africa Energy Investment Forum will provide a platform for nations to strengthen global partnerships, attract investment and build regulatory frameworks that support clean, affordable energy delivery at scale.

Positioning natural gas at the forefront of efforts to end energy poverty, the G20 Forum, hosted by the African Energy Chamber (AEC), will serve as a launch pad for clean energy ­adoption by connecting global capital with African projects and addressing key ­challenges to LPG uptake.

With more than 900 million Africans still lacking access to clean cooking solutions, the continent has increasingly turned to LPG to strengthen clean cooking supply chains.

The G20 Forum will feature a panel discussion dedicated to this topic, exploring investment requirements, supply chain infrastructure and emerging market opportunities.

Titled “From Vision to Delivery: ­National Fuel & LPG Expansion Plans”, the session will feature Titus Mathe, CEO of the South African National Energy Development ­Institute; Anibor Kragha, Executive Secretary of the African ­Refiners and Distributors Association; Sesakho Magagla, Interim CEO of PetroSA; and Tamsin ­Donaldson, Head of Communications and Public Relations at Petredec.

Major developments

With over 620 trillion cubic feet of natural gas reserves and a growing consumer and ­industrial base, Africa’s gas sector is well-positioned to support both energy access and clean cooking adoption. Governments and energy companies are already taking steps to strengthen LPG supply chains by investing in infrastructure that supports distribution, trade and access.

Major developments include the Tanga LPG Terminal in Tanzania, led by Petredec, which will offer a 40 000-cubic-metre capacity when it comes online in 2027, positioning Tanzania as a central hub for East African LPG distribution. Uganda’s LPG Cylinder ­Manufacturing Plant is progressing, with 500 000 filled ­cylinders ­expected to enter the market in the 2025/2026 financial year.

In Kenya, ­discussions are ­underway to build a 30 000-tonne LPG storage and bottling facility in Mombasa, while South Africa’s Transnet is pursuing the country’s first LPG train system and intermodal storage hub.

These advancements coincide with a broader drive to implement pro-investment policies. With Africa requiring up to US$37 billion in ­investment by 2040 to achieve universal access to clean cooking, clear development targets will serve as a catalyst for attracting capital.

Zimbabwe aims to increase access from 38% to 70% and has removed Value Added Tax on LPG to stimulate trade; Angola anticipates a 31% increase in LPG demand by 2027; and ­Tanzania plans to provide 80% of its population with clean cooking access by 2034.

Shifting dynamics

Against this backdrop, the G20 Forum will examine the shifting dynamics of Africa’s LPG market. The session will explore which policy measures are most effective in overcoming adoption challenges; how resources can be ­directed towards sub-Saharan Africa to ensure equitable progress; and strategies for mobilising the public and private capital required to build refineries and expand LPG storage.

By placing African energy regulators and gas companies at the centre of the conversation, the forum will reinforce the role of LPG in Africa’s broader energy transition: Turning national visions into practical, on-the-ground delivery.

“Africa’s LPG sector represents one of the ­continent’s most immediate and high-­impact opportunities to expand clean, affordable energy access,” says NJ Ayuk, executive ­chairman of the AEC.

“But turning ambition into delivery requires a massive scale-up in investment, from building new refineries and storage terminals to upgrading distribution networks and strengthening last-mile access. With clear policies, ­transparent regulation and strong partnerships between governments, financiers and industry players, Africa can create an integrated LPG market that supports universal clean cooking, reduces emissions and drives economic growth across the value chain.”– African Energy Chamber