The west African oil rich nation of Nigeria signed a Memorandum of Understanding (MoU) with Equatorial Guinea on February 23, 2022, at the fifth Nigeria International Energy Summit 2022.
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. Correspondingly, for Equatorial Guinea, the deal will ensure a viable supply of gas for the country’s Gas Mega Hub project – 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. 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,” stated H.E. Chief Timipre Sylva, Minister of State of Petroleum Resources, Nigeria.
Meanwhile, with Equatorial Guinea’s infrastructure and facilities being instrumental to the development, the construction of a potential gas pipeline linking the two markets could be considered in the future.
“As the global geopolitics of natural gas evolves and within the context of the world transitioning to a lower carbon footprint, it was imperative that we think differently on how to remain an important player in energy markets,” stated H.E. Gabriel Mbaga Obiang Lima, adding that, “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.”