Page 9 - GLNG Week 09 2022

GLNG AFRICA GLNG

Nigeria, Equatorial

Guinea sign MoU on

joint processing of

gas from stranded

fields

PROJECTS & THE governments of Nigeria and Equatorial
COMPANIES Guinea have signed a memorandum of under-
standing (MoU) that provides for natural and
associated gas from stranded fields in the for-
mer country’s offshore zone to be processed at
the Punta Europa gas hub in the latter country.
According to press reports, high-ranking offi-
cials from the two sides signed the document on
March 1 during the Nigeria International Energy
Summit (NIES), an ongoing event in Abuja.
They also stated that the MoU would provide for Nigerian government’s “Decade of Gas” initia-
gas from Nigeria’s stranded fields – that is, iso- tive, which calls for extensive gasification of the
lated deepwater sites in the Gulf of Guinea that country’s industrial and economic operations.
cannot be connected easily to existing transport Additionally, he said, the joint project will help
infrastructure – to be delivered to Punta Europa’s Nigeria expand its share of the world gas market.
gas-processing and LNG plants on Bioko Island. “The execution of this MoU meets one of the
The officials indicated that the Nigerian gas imperatives of the ‘Decade of Gas’ in Nigeria,”
would be transported to the gas hub by subsea he remarked. “Whilst we are focused on the
pipeline. However, they did not say how much domestic gas agenda, we are keeping an eye on
gas might be involved in such an arrangement or the global gas market as well.”
say which fields might be served by the pipeline. Equatorial Guinea’s Minister of Mines and
Nor did they speculate as to when the parties Hydrocarbons Gabriel Nguema Obiang Lima
might sign a binding agreement on the matter. also hailed the signing of the document, calling
For his part, Nigeria’s Minister of State for it a positive example of co-operation between
The officials Petroleum Resources Timipre Sylva, who two countries within the global South. “This
indicated that signed the MoU on Abuja’s behalf, declared that strategic collaboration breaks down geograph-
the Nigerian the document would help his country monetise ical boundaries and allows delivery of gas from
stranded gas assets within two years. “Nigeria Nigeria to Equatorial Guinea’s Punta Europa
gas would be has huge gas resources, a significant amount facilities, extending their life and providing
of which is offshore, and will require unprece-
access to the regional and global energy mar-
transported to dented investment in infrastructure to bring kets,” he remarked.
He also said that the MoU demonstrated that
them to market,” he stated, according to a gov-
the gas hub by ernment press release. “This collaboration allows gas-producing states were willing to take creative
subsea pipeline. much of that stranded gas to access the global and flexible approaches in order to bring their
gas market within 18 to 24 months, in what will resources to market under changing conditions.
be the fastest timeline to market for a Nigerian “As the global geopolitics of natural gas evolves
offshore gas asset.” and within the context of the world transition-
Equatorial Guinea is uniquely capable of exe- ing to a lower carbon footprint, it is imperative
cuting this project quickly, he added, because it that we think differently on how to remain an
already possesses a strong portfolio of world- important player in energy markets. New, fast
class LNG and gas-processing plants, as well as and competitive sources will be a major deter-
related infrastructure, he said. Additionally, he minant of success ... [Nigerian National Petro-
stated, the country has investment funds availa- leum Corp. (NNPC)] and its JV partners get a
ble for development projects. unique opportunity to monetise gas that would
Sylva further noted that the collaboration have otherwise been stranded offshore due to
with Equatorial Guinea was in line with the absence of infrastructure,” he said.™

Week 09 04•March•2022 www. NEWSBASE .com P9