In a Memorandum of Understanding which the two countries signed today, March 2, Minister of State for Petroleum Resources, Timipre Sylva, who signed for Nigeris said: “the execution of this MOU meets one of the imperatives of the decade of Gas in Nigeria.”
The Minister said that while Nigeria has been 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.”
This was even as the Minister of Mines and Hydrocarbons of Equatorial Guinea, Gabriel Nguema Obiang Lima, said that the execution of the MOU is 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 monetize gas that would have otherwise been stranded offshore due to absence of infrastructure.”
The MOU kicks off a strategic economic collaboration across the Gulf of Guinea wherein Nigeria’s abundant natural gas reserves compliments Equatorial Guinea’s world class Gas Processing and Liquefaction infrastructure.
Recent passage of the Petroleum Industry Act coupled with “Nigeria’s Decade of Gas” initiative together create an enabling environment which has triggered conceptualisation 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.
