Nigeria and Equatorial Guinea agree to build gas pipeline 0

Nigeria and Equatorial Guinea have signed a groundbreaking deal to build a gas pipeline between the two countries, in a move that will help maximise the use of a liquefied natural gas plant on Bioko Island.

This agreement could be the precursor to a recent initiative to build oil and gas pipelines in the Gulf of Guinea region, linking both littoral nations as well as those inland to promote hydrocarbon usage within Africa and help industrialise the continent.

During a three-day state visit to Equatorial Guinea by Nigeria’s President Bola Tinubu this week, the two nations signed an agreement to construct what they call the Gulf of Guinea Gas Pipeline (GGGP).

The initial aim is to transport gas from Nigeria to Equatorial Guinea where it will be processed at the LNG plant in Punta Europa.

The deal, which was signed by Tinubu as well as Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo on the evening of 14 August, outlines plans for a pipeline, LNG facility feedstock and gas sales to power companies and industrial users, in a move to boost energy security and regional trade in West Africa.

The agreement covered legislative and regulatory measures linked to the GGGP, as well as issues such as ownership, operations and gas transit arrangements.

Details of the pipeline route were not revealed.

Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines & Hydrocarbons, said: “By partnering with Nigeria … we are not only strengthening bilateral cooperation but also regional collaboration to ensure a secure and reliable supply of gas for our LNG facility at Punta Europa for years to come.

“This project will unlock immense economic value for both our nations, driving sustainable development and energy security across the region.”

The LNG plant is currently supplied with gas from Marathon’s Alba gas field, and Chevron’s Alen field.

A second phase involves processing gas from Alba under new contractual terms, while the third phase will tap gas from Chevron’s Aseng field.

Earlier this year, Equatorial Guinea also signed a bilateral trade agreement with neighbouring Cameroon to developed trans-border gas and condensate fields, also operated by Chevron, with the gas slated for use as feedstock for the Bioko LNG plant.

Source: Upstream