The African Energy Chamber (AEC) has signed an memorandum of understanding (MoU) with Canadian project developer and commodities broker Ground State Market Solutions (GSMS) to evaluate and advance LPG and LNG supplies from Canada to African markets, initially targeting West Africa. The agreement establishes a framework for developing the commercial, logistics and regulatory pathways connecting Canadian supplies with African demand.
Effective September 23, 2026, the two-year agreement targets first commercial movements from Q3, 2029 while allowing parties to pursue nearer-term supply opportunities where feasible. The collaboration will examine available Canadian volumes, propane and butane composition, product specifications, indicative pricing, terminal access, marine transportation, implementation schedules and delivered-cost assumptions.
Under the agreement, GSMS will coordinate the Canadian supply and export concept, engaging potential LPG and LNG suppliers, railway and logistics companies, and export-terminal operators. The Calgary-based company will also support discussions concerning Canadian provincial and federal regulations, permitting requirements, railway infrastructure and export facilities needed to move hydrocarbons from production and storage locations toward international markets.
The AEC will focus on African market access and offtake support, identifying and facilitating engagement with governments, national energy companies, LPG and LNG distributors, traders, infrastructure operators, financiers, and potential offtakers. Initial efforts will concentrate on West Africa, with the parties able to pursue shorter-term opportunities alongside longer-term arrangements aligned with the Q3 2029 commercial target.
“The agreement creates a practical bridge between Canadian energy supply and African markets, with a focus on the commercial structures required to move hydrocarbons at scale,” says NJ Ayuk, Executive Chairman, AEC. “By bringing suppliers, governments, infrastructure operators, financiers and offtakers into the same conversation, the partnership can help translate available resources into reliable energy supply.”
Financing and strategic partnerships form another component of the collaboration. The AEC may facilitate introductions to financial institutions, investors and strategic partners while assisting the parties in developing engagement plans, potentially bringing capital providers and commercial counterparties into discussions as the Canadian supply concept and African market opportunities become more defined.
The partnership will also leverage African Energy Week 2026 – taking place in Cape Town from October 12–16 – and other AEC-supported platforms to advance discussions with government and commercial stakeholders. Where appropriate, the AEC will facilitate project engagement through these forums, while GSMS will cover agreed event-related and third-party costs determined in writing before expenditure, providing a mechanism for the prospective supply chain to be presented directly to relevant market participants.
