Nigeria and Equatorial Guinea on Tuesday signed a Memorandum of Understanding (MoU) to supply stranded gas from Nigerian offshore fields to the neighbouring Equatorial Guinea Gas Processing Facility at Punta Europa.
The MoU, which was signed at the ongoing Nigeria International Energy Summit (NIES) in Abuja, is a crucial step in the countries’ economic partnership in the Gulf of Guinea.
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The Minister of State for Petroleum Resources, Timipre Sylva, at the signing ceremony said, “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.”
He said the fast-paced timeline is possible because Equatorial Guinea brings to the table a major portfolio of world class gas processing and liquefaction infrastructure at Punta Europa as well as investment funds for development.
Sylva also said 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,” he noted.
In his comments, Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Obiang Lima, said the pact signing is a great example of South South cooperation between neighbouring Nigeria and Equatorial Guinea.
He said, “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.”