At the fifth Nigeria International Energy Summit 2022, Nigeria, a West African oil-rich country, signed a Memorandum of Understanding (MoU) with Equatorial Guinea to provide gas from offshore reserves to the Gas Processing Plant in Punta Europa, Equatorial Guinea, under the terms of the deal.
The MoU will allow Nigeria to profit from its 200 trillion cubic feet of natural gas reserves. In turn, the agreement will secure a reliable supply of gas for Equatorial Guinea’s Gas Mega Hub project, which aims to commercialize both domestic and regional gas resources while establishing 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.”