Nigeria and Equatorial Guinea on Tuesday signed landmark Memorandum of Understanding (MoU) to supply gas from Nigerian offshore fields to the neighbouring Equatorial Guinea Gas Processing Facility at Punta Europa.
A statement sent to City Business News explained that this MoU kicks off a strategic economic collaboration across the Gulf of Guinea wherein Nigeria’s abundant natural gas reserves compliment Equatorial Guinea’s world-class Gas Processing and Liquefaction infrastructure.
According to the statement, the recent passage of the Petroleum Industry Act coupled with “Nigeria’s Decade of Gas” initiative together creates an enabling environment that has triggered the conception of this project, facilitating major investment inflow from Equatorial Guinea into Nigeria. The project also signals the joint effort of the two countries in working towards a greener energy world.
Nigerian Minister of State for Petroleum Resources, Timipre Sylva, stated that “the execution of this MOU meets one of the imperatives of the “Decade of Gas” in Nigeria. Whilst we are focused on the domestic gas agenda, we are keeping an eye on the global gas market as well. Nigeria has huge gas resources, a significant amount of which is offshore and will require unprecedented investment in infrastructure to bring them to market. This collaboration allows much of that stranded gas to access the global gas market within 18 to 24 months in what will be the fastest timeline to market for a Nigerian offshore gas asset. This is possible because Equatorial Guinea brings to the table a major portfolio of world-class gas processing and liquefaction infrastructure already in place in Punta Europa, coupled with investment funds for development. Additionally, the project which envisions an offshore gas pipeline development will also create huge in-country local content opportunities for pipeline and other infrastructure service providers. This is in addition to accelerated royalty revenues that come from producing many gas fields that would have otherwise remained stranded”.
Gabriel Nguema Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea stated that the execution of this MOU is a great example of the South-South cooperation between neighbouring Nigeria and Equatorial Guinea. He went on to say that “as the global geopolitics of natural gas evolves and within the context of the world transitioning to a lower carbon footprint,it is imperative that we think differently on how to remain an important player in energy markets. New, fast, and competitive sources will be a major determinant of success. This strategic collaboration breaks down geographical boundaries and allows delivery of gas from Nigeria to Equatorial Guinea’s Punta Europa facilities, extending their life and providing access to the regional and global energy markets. The NNPC and its’ JV partners get a unique opportunity to monetize gas that would have otherwise been stranded offshore due to absence of infrastructure.”
As the world dynamics change, Nigeria aims to adapt rapidly to ensure that we remain at the forefront of credible gas exporters.