The Nigerian federal government has signed a Memorandum of Understanding (MoU) with Equatorial Guinea to supply gas from Nigerian offshore fields to Punta Europa, the country gas processing facility. ayokinews.com reports
The federal government said last week that it will invest and focus on natural gas development in order to boost the industry’s growth in Nigeria.
At the MoU signing event in Abuja on Tuesday, Timipre Sylva, the Minister of Petroleum Resources, signed the deal on behalf of the Nigerian government.
The minister said the deal marked the start of a strategic partnership across the Gulf of Guinea.
Nigeria’s vast natural gas reserves, he argued, will complement Equatorial Guinea’s gas processing and liquefaction facilities.
The project was sparked, according to Sylva, by the recent passing of the Petroleum Industry Act (PIA) in conjunction with Nigeria’s Decade of Gas initiative, which encouraged investor inflow from Equatorial Guinea into Nigeria.
He said that the initiative demonstrated the two countries’ commitment to working together to create a more sustainable greener energy future.
“The execution of this MOU meets one of the imperatives of the Decade of Gas in Nigeria. While we are focused on the domestic gas agenda, we are keeping an eye on the global gas market as well,” the minister said.
“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 also stated that the project, which included the construction of an offshore gas pipeline, will offer significant in-country local content possibilities 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.”
The signing of the MoU, according to Gabriel Lima, Equatorial Guinea’s Minister of Mining and Hydrocarbons, is an excellent example of South-South collaboration between 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.”