Chinese Firms Shift Strategy to Expand Oil and Gas Infrastructure in Africa

The landscape of Chinese investment in Africa is undergoing a structural transformation. According to data from the Green Finance and Development Center, Chinese involvement in the “Belt and Road” initiative peaked in 2025, driven largely by a massive influx of capital into the oil and gas sector. Total energy project volume—encompassing both investment and construction contracts—hit 93,9 млрд. щ.д. last year, more than double the figures recorded in 2024.

The Shift to Engineering and Infrastructure

Rather than seeking direct ownership of oil and gas fields, Chinese companies are increasingly adopting a “contractor” model. Under this approach, Chinese firms focus on engineering, procurement, and construction (EPC) agreements. In these arrangements, the contractor assumes full responsibility for the project’s execution, providing a comprehensive package of capital and technical services that is highly attractive to host governments.

This strategy represents a departure from traditional resource-seeking behavior. By managing the development and construction rather than holding equity in exploration and production assets, Chinese firms are navigating complex local governance challenges while securing large-scale industrial commitments. This shift has resulted in fossil fuels representing 74% of all overseas energy projects—the highest proportion since 2014, as reported by Dialogue Earth.

Mega-Deals in Nigeria and the Republic of Congo

The 2025 boom was not characterized by a high volume of small projects, but rather by two massive agreements that accounted for nearly 60% of the 71,5 млрд. долара spent on oil and gas initiatives. These deals highlight how Chinese firms are integrating themselves into the broader industrial and energy infrastructure of African nations.

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In both instances, the projects serve dual purposes. In Nigeria, gas is being leveraged as a foundational commodity for domestic industrialization, including fertilizer and power production. In the Republic of Congo, the agreement with Wing Wah facilitates both domestic consumption and the export of oil and gas derivatives, with China remaining a primary destination for the country’s oil exports.

Long-term Risks and Global Market Pressures

Despite the current momentum, the long-term viability of these carbon-intensive investments remains an open question. As global environmental regulations tighten and trade rules evolve, the reliance on massive, long-term fossil fuel infrastructure faces significant external pressures.

The structural change in how these projects are financed—favoring service-based contracts over equity participation—may offer Chinese firms a degree of insulation from the volatility of direct asset ownership. However, the ultimate success of these multi-billion dollar ventures will depend on the stability of local governance in the host countries and the ability of these assets to remain competitive in a world increasingly focused on decarbonization.

Sources: Новини СЕГА.