Chamber Seeks Quick Execution Of Equatorial Guinea-Nigeria Gas Project
Following up on the pact on offshore resources, African Energy Chamber (AEC) has pushed for rapid implementation of the Equatorial Guinea-Nigeria landmark natural gas deal.
The move is to position West Africa’s offshore resources.
The MoU was signed at the fifth edition of the Nigeria International Energy Summit (NIES) 2022 to enable Nigeria to supply gas from offshore fields to Equatorial Guinea’s gas processing facility at Punta Europa.
Also, the MoU allows for the monetisation of Nigeria’s resources, paving the way for enhanced economic and energy sector growth.
The new approach marks a critical step in West Africa’s journey towards gas monetisation and utilisation while ushering in a new era of regional collaboration that other African stakeholders could learn from.
At the summit, the Minister of State for Petroleum Resources, Timipre Sylva and his counterpart, Minister of Mines and Hydrocarbon, Equatorial Guinea, Gabriel Mbaga Obiang Lima were urged to ensure the rapid implementation of the deal.
Backed by Nigeria’s ‘Decade of Gas’ initiative, which aims to transform the country into a gas economy through the development of sizeable gas-based projects and made feasible through the recently implemented Petroleum Industry Act (PIA), the MoU integrates Nigeria’s sizeable offshore gas reserves with Equatorial Guinea’s world-class gas processing and liquefaction infrastructure.
For Nigeria, the PIA, which streamlines industry processes and offers attractive investment opportunities in conjunction with the decade of gas initiative, has not only created an enabling environment for projects such as this to take off but has made a strong case for the role of Nigerian gas in regional markets.
For Equatorial Guinea, the MoU represents a critical step in the country’s journey to become both a regional and global gas hub.
As the country moves to accelerate the development of its Gas Mega Hub (GMH), a diverse project designed to harness unexploited offshore domestic and regional gas resources, regional resources such as those in Nigeria would be critical for the successful development and overall success of the GMH.
The MoU expands regional gas commercialisation opportunities while consolidating Equatorial Guinea’s position as a strong and sustainable gas economy.
According to the Executive Chairman of the AEC, NJ Ayuk,
“The Chamber is urging both Ministers to ensure the rapid implementation of the deal, recognising the role this deal will play in positioning west Africa as a global gas hub. Nigeria’s resources, coupled with Equatorial Guinea’s infrastructure and processing facilities, will enable gas to be commercialised, resources maximised, and new investment opportunities clarified in west Africa.
“To ensure optimal implementation and project success, the Chamber is urging Ministers to cut red tape, ensure productive processes drive development while enabling the private sector to play a leading role in project implementation. The world needs gas, and Africa can supply it. Deals such as this will be critical, both for the continent and for the world. The Chamber is also calling for the signing of definitive agreements with Marathon, Chevron, Sonatas, as well as other key Equatoria Guinea LNG partners either or before the continent’s premier energy event, African Energy Week 2022, so that west African progress can be accelerated in 2022 and beyond.”
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