Gabon's energy production
Gabon, located in Central Africa, has a diverse energy production landscape primarily dominated by oil, which significantly impacts its economy. Oil accounts for 43 percent of Gabon's GDP and is the primary export, though the country also utilizes hydropower and natural gas for electricity generation. In 2022, Gabon produced 3.5 terawatt-hours of electricity, with fossil fuels providing 1.38 terawatt-hours and renewable sources contributing around 1 terawatt-hour. The nation is the third-largest oil producer in sub-Saharan Africa, with plans to enhance production from current levels to potentially 500,000 barrels per day by 2024.
Gabon possesses substantial undeveloped hydroelectric potential, estimated at about 6,000 megawatts, and operates two major hydroelectric stations along with a smaller facility. The Energy and Water Company of Gabon manages the energy sector, supplying electricity mainly to urban populations. Recent investments aim to expand the electricity network into rural areas, where many still rely on traditional biomass for energy. As of 2021, approximately 91.81 percent of Gabon's population had access to electricity, reflecting ongoing efforts to improve energy availability and support economic growth.
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Gabon's energy production
Official Name: Gabonese Republic.
Summary: Gabon is one of the least densely populated countries in Africa, with a slow but steady population growth rate. While oil is a major contributor to the economy, hydropower and natural gas are other major sources of electricity.
The economy of Gabon is dependent on extraction of the nation’s abundant natural resource, oil. Historically, logging was a great contributor to the economy. Oil dominates the country’s economy, contributing 43 percent of the gross domestic product and 81 percent of exports. Despite declines in the country’s production of oil, Gabon remains the third-largest oil producer in sub-Saharan Africa. In 2022, Gabon generated 3.5 terawatt-hours of electricity, which was significantly below the global average, which was 432 watts per person. Fossil fuels generated about 1.38 terawatt-hours of the country's total electricity. Renewable energy sources contributed to only 1 terawatt-hour of electricity in 2022.
Oil deposits were first found offshore of Libreville and Port-Genti, in the northwestern part of the country, in 1931. Additional deposits were later discovered in the south. The additional major deposit areas include Mandji Island (discovered in 1962), Rabi Kounga (the largest producer, discovered in 1985), Gamba, and Lucinda. Oil from the northwest is brought by pipeline to Cape Lopez for loading and export; oil produced in the south is exported from terminals at the production fields. Nearly 85 percent of Gabon’s oil production is offshore. Most oil produced in Gabon is exported to Argentina, Brazil, France, the United States, and Taiwan.
Oil has provided Gabon with a strong per capita gross domestic product, which is about four times that of other countries in the region. However, per capita income is not evenly distributed; about 20 percent of the population receives more than 90 percent of the income. Nearly one-third of Gabon’s population do not profit from oil extraction and live in poverty.
Oil production was around 195,000 barrels per day in 2022 but increased to 215,000 in 2023. At the height of production, in 1997, Gabon was producing 370,000 barrels per day. Although still profitable, production has steadily declined since the start of the twenty-first century because of low oil prices and mature oil fields. The government has expressed concern about the depletion of oil resources but is determined to increase its oil production. In 2024, it planned to use its offshore, deep-water resources to possibly reach 500,000 barrels per day in the coming years.
Gabon produced 130 billion cubic feet of natural gas in 2018. The country did not export natural gas and consumed whatever it generated. Although reserves were originally overestimated, natural gas continues to be an energy source for the country.
Gabon has two major hydroelectric stations, located at the Kinguélé and Tchimbélé dams on the Mbei River. A smaller hydroelectric station is located at Poubara on the Ogooué River. It is estimated that Gabon has approximately 6,000 megawatts of undeveloped hydroelectric potential.
The Energy and Water Company of Gabon (Société d’Energie et d’Eau, or SEEG) manages and operates Gabon’s energy sector. SEEG was formed in 1963 and incorporates smaller private and semipublic entities. Since 1997, SEEG’s ownership has been split, with 51 percent owned by Vivendi, a French firm; 5 percent owned by SEEG employees; and 44 percent owned by the public. Since Vivendi’s ownership, electricity rates have fallen as a result of efforts to improve the generation capacity and transmission network. SEEG supplies electricity to approximately 520,000 people, mostly in the major urban areas of Libreville, Port Gentil, and Franceville. A current investment venture proposes to improve the quality of supply and extend electricity to other areas of the country, many of which continue to use traditional biomass.
Grupo Isolux Corsán, a private company from Spain that operates in the construction, environment, concessions, energy, and industrial services sectors, has signed a contract with the government of Gabon to extend the country’s electricity network to villages in west and central Gabon. Other collaborations, such as a 36-megawatt hydropower project located in the northern part of the country, are expanding the hydroelectric sector. As of 2021, 91.81 percent of the population had access to electricity, an increase of 0.74 percent from 2020. With increased electricity access, the government hoped to stimulate economic activity and alleviate poverty.
Bibliography
Central Intelligence Agency. “Gabon.” In The World Factbook. www.cia.gov/library/publications/the-world-factbook/geos/gb.html. Accessed 2 Aug. 2024.
"Gabon--Country Commercial Guide." Power Africa, International Trade Association, 7 May 2024, www.trade.gov/country-commercial-guides/gabon-power-africa. Accessed 2 Aug. 2024.
US Department of State. “Background Note: Gabon.” www.state.gov/r/pa/ei/bgn/2826.htm. Accessed 2 Aug. 2024.
US Energy Information Administration. “Country Analysis Brief: Gabon.” www.eia.gov/countries/country-data.cfm?fips=GB. Accessed 2 Aug. 2024.