Nigerian and Equatorial Guinea have signed a Memorandum of Understanding (MoU) for the supply gas from Nigerian offshore fields to the Equatorial Guinea gas processing facility at Punta Europa.
Nigeria’s Minister of Petroleum Resources, Chief Timipre Sylva, signed the MoU on behalf of the Nigerian Government, while the Minister of Mines and Hydrocarbon of Equatorial Guinea, Mr Gabriel Nuema Lima, signed for his country on Tuesday in Abuja.
Speaking at the signing ceremony, Sylva said the agreement had kicked off a strategic collaboration across the Gulf of Guinea and that
Nigeria’s abundant natural gas reserves would complement Equatorial Guinea’s gas processing and liquefaction infrastructure.
He disclosed that the passage of the Petroleum Industry Act coupled with Nigeria’s Decade of Gas initiative triggered the project, as it had facilitated investment inflow from Equatorial Guinea into Nigeria.
According to Sylva, the project also signals the joint effort of the two countries in working towards a greener energy world.
“The execution of this MoU meets one of the imperatives of the Decade of Gas in Nigeria. While we are focused on the domestic gas agenda, we are keeping an eye on the global gas market as well,” he said.
“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.
“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,” local media reports on Wednesday quoted Sylva as saying.
In his remarks, the Equatorial Guinea’s Minister of Mines and Hydrocarbons said that the execution of the MoU was a great example of the South-South cooperation between the two countries.
“As the global geopolitics of natural gas evolves and within the context of the world transitioning to a lower carbon footprint, it is imperative that we think differently on how to remain an important player in energy markets,” he said.
According to him, the 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.
GIK/APA