China’s presence in Africa’s energy sector is expanding rapidly, with Beijing’s strategic initiatives driving significant investments across the continent. In 2023 alone, China funnelled $21.7bn into African infrastructure through its Belt and Road Initiative, positioning itself as a major player in the continent’s oil and gas industries. State-owned giants like China National Offshore Oil Corporation (CNOOC) and China Petroleum & Chemical Corporation now rank as the fourth-largest energy investors in Africa.
As these opportunities grow, the African Energy Chamber (AEC) is stepping up efforts to solidify partnerships between African nations and Chinese investors. NJ Ayuk, AEC Executive Chairman, will lead a delegation to China for high-level discussions with government officials and private sector leaders. The focus will be on exploring investment opportunities, advancing bankable projects, and expanding China’s involvement in Africa’s upstream, midstream, and downstream energy sectors.
‘Chinese investors are playing an increasingly critical role in Africa’s energy development. With strong multilateral ties forged under initiatives like the Belt and Road, Chinese companies are emerging as the partners of choice for Africa’s oil and gas projects,’ said Ayuk. ‘Their involvement is key as Africa aims to eradicate energy poverty by 2030.’
Chinese companies are already deeply engaged in Africa’s oil and gas sectors. In the Republic of Congo, Wing Wah, a Chinese oil and gas company, is spearheading the Bango Kayo project, an innovative initiative aimed at maximising resource monetisation and increasing natural gas utilisation. ‘The Bango Kayo project is a game-changer, not just for Congo but for the entire region,’ Ayuk noted. ‘It’s designed to extend the lifecycle of oilfields while transforming previously flared gas into valuable products like LNG, butane, and propane.’
In Angola, China has invested nearly $14bn in the last decade, with the bulk of these funds directed toward energy projects. Chinese companies are advancing refining projects and exploring new upstream opportunities. Earlier this year, CNOOC executives visited Angola to assess investment opportunities in Block 24, a deepwater exploration site with significant potential. ‘Angola’s energy sector is poised for significant growth, and Chinese investments are a major driving force behind this momentum,’ Ayuk said.
In East Africa, CNOOC is a key partner in the development of the East African Crude Oil Pipeline, a $5bn project that will transport crude from Uganda to Tanzania’s Port of Tanga. The project partners have already secured $2bn in funding, with Chinese lenders like the Export-Import Bank of China expected to play a crucial role in raising the additional $3bn needed. ‘This pipeline is a vital infrastructure project for East Africa, and China’s financial backing is indispensable,’ Ayuk added.
As Africa’s portfolio of bankable oil and gas projects continues to grow, Chinese investors are expected to play an even greater role in the continent’s energy landscape. ‘From upstream exploration to downstream infrastructure, Chinese companies are catalysing development across the board,’ Ayuk emphasised. ‘Their contributions are vital as we work to make energy poverty history by 2030.’
The AEC’s upcoming visit to China is strategically planned ahead of the African Energy Week (AEW): Invest in African Energy conference, which will take place on October 2-3 in Cape Town. This event, the largest energy gathering in Africa, will bring together Chinese investors and African project developers to foster a new era of partnerships. ‘The AEW conference is a unique opportunity to connect, discuss, and drive forward the projects that will shape Africa’s energy future,’ Ayuk said. ‘It’s all about creating the conditions for success in a rapidly evolving global energy landscape.’
Reuters
