North Africa struggles to meet export potential

Dr. Nakhle emphasized that competition is a major factor constraining North Africa’s gas export potential. She pointed to intensifying competition from other suppliers, particularly in Europe, where leading LNG exporters like the U.S. and Qatar have increased their shipments in recent years. On top of this, she highlighted the growing challenge from renewables, noting that one of natural gas’s main weaknesses is that it has a substitute in each of its applications.

Dr. Nakhle stressed that North Africa must address both domestic challenges and external pressures to enhance its gas export potential. She emphasized that in a world increasingly focused on climate considerations, the traditional “business-as-usual” model is no longer sufficient. Efforts to ramp up gas production must take emissions into account, as North Africa is not globally competitive in terms of carbon intensity. She underscored the need for both industry and governments in the region to prioritize reducing carbon emissions to remain relevant in the evolving energy landscape.