Nigeria and Equatorial Guinea have signed an agreement to build and operate a gas pipeline, reports Reutersciting Nigerian presidential spokesman Ajuri Ngelale.
The countries agreed on a $2.5 billion project to build a 200-kilometer pipeline to transport Nigerian gas to Equatorial Guinea, the Sun.
The aim of the cooperation is also to strengthen economic relations and address various regional challenges, including employment, conflict and food security.
In 2016, Nigeria and Morocco agreed to build the pipeline to promote regional integration, increase energy security while providing a route for African gas exports to Europe.
This major project, estimated to cost $25 billion, is supported by the Economic Community of West African States.
Once its three phases are completed, it will have the potential to transport 30 billion cubic metres of gas annually.
The recent agreement with Equatorial Guinea covers various aspects of the pipeline’s development, including legal and regulatory framework, operations, natural gas transit, ownership and general principles.
Nigerian Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, reported Sunhighlighted the economic benefits, noting that the project will increase Nigeria’s gas production and support Equatorial Guinea’s underutilised LNG and methanol plants.
After the signing, negotiations are expected to continue, with a focus on supplying Nigeria with unused gas through the pipeline.
Separately, Nigeria’s Dangote refinery called on Nigeria’s Upstream Petroleum Regulatory Commission to enforce the Domestic Crude Supply Obligation, which requires crude oil producers to outsource part of their production to domestic refineries.
This demand comes as the Dangote refinery, a $20 billion facility built by Aliko Dangote on the outskirts of Lagos with a capacity of 650,000 barrels per day, is struggling to source enough crude oil, affecting its operating costs.
Vandalism and underinvestment have affected Nigeria’s oil production and hampered the refinery’s ability to supply sufficient crude oil since it opened.
Source:
https://www.reuters.com/markets/commodities/nigeria-equatorial-guinea-sign-gas-pipeline-project-2024-08-15
https://thesun.ng/nigeria-equatorial-guinea-sign-2-5bn-pipeline-deal-on-stranded-gas
