China is shifting its energy strategy, turning to Liquefied Natural Gas (LNG) from Africa to diversify its supply sources as imports from Australia decline.
According to the South China Morning Post (SCMP), China is increasingly sourcing LNG from Mozambique, Algeria, Ghana, and Egypt, signalling a major change in its energy procurement approach.
China’s Energy Diversification Strategy
Although Australia remains China’s largest LNG supplier, providing about one-third of its total LNG imports, Beijing is reducing reliance on Australian gas. This shift aligns with China’s broader strategy to diversify resource suppliers, a move that has seen increased imports from Qatar, Russia, Malaysia, and the United States. However, Africa’s role in China’s LNG imports is expanding rapidly, particularly through Nigeria, Mozambique, Algeria, and Egypt.
Mozambique’s LNG Projects: A Key Supplier to China
China’s investments in Mozambique’s LNG sector highlight its growing reliance on African gas. The China National Petroleum Corporation (CNPC) holds a 20% stake in the $30 billion Rovuma LNG project, an 18-million-tonne-per-year offshore development. Additionally, CNPC is a key investor in the Coral Floating Liquefied Natural Gas project, which shipped its first LNG cargo in 2022.
Also read: Africa-China: Boosting Growth in the Global South—Opportunities & Challenges
Beijing-based corporate lawyer Kai Xue noted that China’s pivot to Mozambique’s LNG projects reflects a broader strategic realignment. With ongoing trade tensions with Australia, China is securing alternative LNG sources, mirroring its efforts in Guinea’s iron ore industry and Mongolia’s coking coal railway projects.
China Expands LNG Investments Across Africa
Beyond Mozambique, China is deepening its LNG investments across Africa, further strengthening its energy ties with the continent:
• Congo-Brazzaville: Chinese firm Wing Wah is developing the $2 billion Banga Kayo block, capturing previously flared gas to produce one million cubic meters of gas per day for domestic consumption.
• Algeria: Sinopec and China National Nuclear Corporation have completed a 150,000-cubic-meter LNG storage tank in partnership with Sonatrach, Algeria’s state-owned oil company.
• Egypt and Ghana: China is exploring additional LNG partnerships, securing long-term supply agreements.
A Shift in Africa-China Energy Trade
David Shinn, a China-Africa specialist at George Washington University’s Elliott School of International Affairs, highlighted the shifting dynamics of China’s energy imports from Africa. While China’s crude oil imports from Africa have declined, LNG imports are surging, reinforcing the continent’s growing importance in China’s energy security strategy.
Also read: African Energy Chamber Welcomes U.S. Support for Mozambique’s LNG Project
Conclusion: Africa’s Growing Role in China’s LNG Market
As China accelerates LNG investments across Africa, the continent is emerging as a crucial energy supplier. With Mozambique, Algeria, Nigeria, and Egypt at the forefront, China is securing long-term gas partnerships to mitigate geopolitical risks and ensure supply stability. This strategic shift not only strengthens China-Africa economic ties but also positions Africa as a key player in the global LNG market.
