For decades, the global narrative on Africa has centered on its vast resources—critical minerals, oil, and biomass. However, this view overlooks a pressing domestic reality: the urgent need for affordable, clean energy. Across nations like Nigeria, Ghana, Senegal, and Tanzania, the quest for cheaper and cleaner fuels for cooking, heating, and industry is driving a significant shift towards Liquefied Petroleum Gas (LPG).
The Driving Force: Health, Environment, and Feasibility
The scale of the challenge is immense. Over 1 billion Africans still rely on charcoal or biomass for fuel, a practice with severe consequences for regional climates and public health, as highlighted at the 2024 Africa Clean Cooking Summit. Remarkably, LPG is leading the clean cooking revolution, accounting for more than 75% of new adoption across the continent, outpacing natural gas and electricity.
The International Energy Agency (IEA) estimates that achieving universal clean cooking in Africa requires a $37 billion investment by 2030. LPG presents the most viable path forward. It delivers immediate health and environmental benefits without the political risks or massive infrastructure overhauls associated with other energy sources.
Bridging the Supply Gap: Import Dependence and Infrastructure Hurdles
Despite the clear demand, most African countries struggle to meet it domestically due to limited refining capacity and import terminals. Nigeria, a major global producer of fossil fuels, consumed nearly 2 million metric tons of LPG in 2025, yet a significant portion was imported. This was due to technical issues and delays at the domestic Dangote refinery.
The situation is echoed across the continent. South Africa has lost about 50% of its refining capacity since 2020, leading to a 140% surge in imports. This growing import dependence in Kenya, Tanzania, Ghana, and Senegal raises serious concerns about trade security and creates leveraged economic dynamics.
Currently, the United States is a primary source of LPG imports, supplying propane and butane. US Secretary of Energy Chris Wright has actively supported LPG expansion in Africa, catalyzing further investment. Following this political backing, a US-based consortium unveiled a $10 billion plan to build import terminals, storage facilities, and logistics networks across ten African nations.
Private Sector Leadership and Geostrategic Shifts
Private companies are stepping in to overcome infrastructure bottlenecks. Major traders are coordinating flows, financing, and price formation. For instance, Petredec launched Tanzania's largest import terminal, bolstering national energy security. Another key player, the BGN Group, initially the sole LPG supplier to Egypt, is now expanding its operations across Africa.
BGN's role is pivotal. As one of the largest offtakers of US LPG to the continent, the company focuses on structural development, operating without tying aid to national political interests. Its work includes developing hybrid shipping models suited for Africa's fragmented coastal markets and outdated port systems, which often cannot accommodate very large gas carriers (VLGCs).
The infrastructure race is accelerating. Petredec's Tanzanian terminal will be surpassed by a 30,000-tonne facility in Mombasa, Kenya, approved in 2025. Nigerian firm Asharami Synergy PLC also gained approval to build an LPG plant in Kenya, while countries like Côte d'Ivoire and South Africa are incentivizing projects through subsidies.
This development carries significant geostrategic weight. The growing African connection to Western LPG supplies is deepening integration into Atlantic trade routes, potentially redirecting capital flows away from the East. Middle Eastern suppliers have lagged behind US-led importers, and Chinese companies have largely avoided the LPG sector, focusing instead on port development.
Ultimately, Africa's LPG transition weaves a complex web of development, hinging on trade dynamics, maritime access, infrastructure investment, and public-private cooperation. While the immediate goal is providing cleaner cooking fuel for a healthier population, the broader paradigm is reshaping the continent's energy landscape, with US-dominated supply, traders like BGN, and large consortia set to influence Africa's external alignments for years to come.
