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    You are at:Home»More»Energy Capital Power»Africa looks to upgrade logistics to unlock oil and gas potential
    Energy Capital Power

    Africa looks to upgrade logistics to unlock oil and gas potential

    Xsum NewsBy Xsum NewsDecember 18, 2025No Comments4 Mins Read0 Views
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    Africa is rich in hydrocarbon resources, but much of its potential remains underutilized due to logistical challenges. Weak road networks, limited storage capacity, congested ports, and fragmented cross-border transportation systems are driving up costs for producers and consumers alike, while slowing exports and, in some cases, discouraging investment, costing the sector billions of dollars in lost revenue. Governments and private investors across the continent are now targeting these bottlenecks with strategic infrastructure projects aimed at streamlining supply chains, reducing costs and connecting Africa’s hydrocarbon resources to global markets.

    In the Republic of Congo, African Global Logistics has secured more than €230 million to expand its container terminal at the Port of Pointe-Noire. The project includes a 750-metre quay, a 17-metre dredged berth and enhanced cargo handling capacity. The expanded port, scheduled for completion in 2027, is expected to support Congo’s ambitions to double container throughput to 2.3 million units per year, increase hydrocarbon production to 500,000 barrels per day and LNG production to 3 million tonnes per year. Such modern port infrastructure will reduce vessel waiting times, reduce export costs and better integrate Africa’s supply chains with global markets.

    Angola’s Barra do Dande Marine Terminal is a $642 million facility opened in 2025 with 29 storage tanks with a capacity of approximately 580,000 cubic meters and a 1,700 meter pier for large vessels. The terminal will more efficiently connect Angola’s production centers with international trade routes, boosting exports and reducing dependence on aging facilities. Further expansion is expected in 2026 under a public-private partnership, including an integrated Soyo terminal and a new pipeline route with significant storage capacity, demonstrating the value of the co-investment model.

    Beyond ports, road and rail corridors are essential to unlocking remote hydrocarbon basins. The Lamu Port – South Sudan – Ethiopia Transport Corridor (LAPSSET) is a flagship project that will connect Lamu Port in Kenya with South Sudan and Ethiopia through road, rail, pipeline and maritime networks. The corridor will connect production hubs and export terminals to reduce transit times, increase supply chain efficiency and integrate energy and goods networks across East Africa.

    At next year’s Africa Investments in Energy (IAE) Forum in Paris, panelists will explore how modular infrastructure, digital logistics platforms and local partnerships can overcome traditional bottlenecks in the session ‘Africa on the move: Advancing oil and gas logistics’. Modular facilities, such as prefabricated storage systems and mobile processing units, can be deployed faster and at lower cost than bespoke large-scale construction, providing flexibility for emerging oil and gas hubs. Local partnerships, especially those between foreign investors and regional logistics companies, strengthen capital flows while building local expertise and ensuring sustainability and alignment with national development goals.

    As traditional lenders become increasingly wary of lending to fossil fuels, Africa needs to prove that its energy sector is resilient, efficient and investment-ready. Logistics infrastructure plays a central role in that story, showing investors from development banks to private equity funds that smart infrastructure design can improve returns, reduce risk and de-risk projects. For policymakers, executives and investors attending IAE Paris 2026, the Africa on the Move panel will provide practical insights into how targeted logistics investments can accelerate oil and gas development, foster regional integration and support Africa’s broader economic transformation.

    IAE 2026 is a special forum aimed at connecting African energy markets with global investors and will serve as a key platform for deal-making in the lead-up to Africa Energy Week. Scheduled for April 22-23, 2026 in Paris, the event will offer participants two days of in-depth interaction with industry experts, project developers, investors and policy makers. For more information, please visit www.invest-africa-energy.com. To become a sponsor or register as a representative, please contact sales@energycapitalpower.com.

    Africa Gas Logistics Oil potential unlock upgrade
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