NIGERIA – Nigeria and Equatorial Guinea have signed a Memorandum of Understanding (MoU) to supply gas from Nigeria’s offshore fields to the neighboring country’s gas processing facility in Punta Europa.
The MoU kicked off a strategic economic collaboration across the Gulf of Guinea where Nigeria’s abundant natural gas reserves complement the country’s gas liquefaction infrastructure.
The move 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 agreement will see Nigeria supplying gas from offshore fields to Punta Europa, Equatorial Guinea’s Gas Processing Plant.
For Nigeria, the MoU will enable the country to monetize its 200 trillion cubic feet of natural gas resources.
The Nigerian government stated that the recent passage of the Petroleum Industry Act (PIA) has created an enabling environment that triggered the conception of the project.
Correspondingly, for Equatorial Guinea, the deal will ensure a viable supply of gas for the country’s Gas Mega Hub project.
The project is designed to commercialize both domestic and regional gas resources while positioning Equatorial Guinea as a regional hub.
“Nigeria has huge gas resources, a significant amount of which is offshore and will require unprecedented investment in infrastructure to bring them to market,” said H.E. Chief Timipre Sylva, Minister of State of Petroleum Resources, Nigeria.
The minister added that the collaboration allows much of that stranded gas to access the global gas market within 18 to 24 months.
“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 added.
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.
The deal further accelerated royalty revenues that come from producing many gas fields that would have otherwise remained stranded.
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.
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