Nigeria and Equatorial Guinea on Tuesday signed a Memorandum of Understanding (MoU) to supply gas from Nigeria’s offshore fields to the neighbouring country’s gas processing facility in Punta Europa.
A statement by the Senior Special Adviser, Media, to the Minister of Petroleum Resources, Mr. Horatius Egua, stressed that the MoU kicked off a strategic economic collaboration across the Gulf of Guinea where Nigeria’s abundant natural gas reserves compliment the country’s gas liquefaction infrastructure.
The Nigerian government stated that the recent passage of the Petroleum Industry Act (PIA) coupled with, “Nigeria’s Decade of Gas” initiative was creating an enabling environment which triggered the conception of the project.
According to the government, this has facilitated major investment inflow from Equatorial Guinea into Nigeria even as the project signals the joint effort of the two countries in working towards a greener energy environment.
“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,” Sylva said.
Additionally, the government noted that the project which envisions an offshore gas pipeline development would create huge in-country local content opportunities for pipeline and other infrastructure service providers.
This, it stated was in addition to accelerated royalty revenues that come from producing many gas fields that would have otherwise remained stranded.
Minister of Mines and Hydrocarbons, Equatorial Guinea, Gabriel Nguema Obiang Lima, in his remarks, stated that the execution of this MoU was a great example of the South-south cooperation between neighbouring Nigeria and Equatorial Guinea.
“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 monetise gas that would have otherwise been stranded offshore due to absence of infrastructure,” he stated.
According to the statement, as the world energy dynamics change, Nigeria aims to adapt rapidly to ensure that it remains at the forefront of world gas exporters.