Nigeria’s minister of state for petroleum Timipre Sylva has signed a memorandum of understanding on behalf of the country with the government of Equatorial Guinea to develop and supply non-committed gas resources. The MoU sets off a collaboration between the two countries that will see Nigeria supply gas from its offshore fields for processing and liquefaction at Equatorial Guinea’s gas process facility at Punta Europa.
According to Minister Sylva, the execution of this agreement is one of the legs of Nigeria’s ‘decade of gas’ initiative that will help drive growth in the country’s gas sector by harvesting and processing stranded gas in its waters saying “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 added also, that Equatorial Guinea is expected to deliver world-class gas processing and liquefaction infrastructure already in place in Punta Europa, coupled with investment funds for development.
Additionally, the project which is expected to include the development of an offshore gas pipeline will also create huge in-country local content opportunities for pipeline and other infrastructure service providers.
On his part, Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Nguema Obiang Lima, described the signing of the MOU as a great example of the South-South cooperation between neighbouring Nigeria and Equatorial Guinea. “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 the absence of infrastructure,” he said.
Both countries have significant reserves of natural gas: 1.30 trillion cubic feet in Equatorial Guinea and N117 trillion in Nigeria.