Page 5 - DMEA Week 18 2022

DMEA COMMENTARY DMEA

NMGP attracts interest Competitors?
To the north, following last week’s announce- It appears that Zambia is not the only country
ment of a contract award for engineering design spreading its bets, with Nigeria signing a docu-
and environmental studies for the 7,000-km ment in February outlining plans with Algeria
Nigeria-Morocco Gas Pipeline (NMGP), a top and Niger to develop a cross-border conduit
Nigerian official said that Russia had expressed that, while theoretically operable in unison with
an interest in investing in the project. NMGP, would doubtless compete for funding.
While there are feasibility issues related to The $13bn Trans-Saharan Gas Pipeline
a project that would run through the territo- (TSGP) would run northward through Nige-
ries of 13 African countries and provide gas to rian territory and eastern Niger to Algeria’s Hassi
Spain and beyond via the Gaz Maghreb-Europe R’Mel gas field. At Hassi R’Mel, TSGP could
(GME) pipeline, perhaps more palpable is the then connect to existing gas pipelines that pump
sense of irony that Russia is seeking to invest in Algerian gas to Europe, such as the Medgaz link
a project aimed, indirectly, at weaning European to Spain or the TransMed link to Italy.
states off Russian gas. According to the agreement, the 4,128-km
Minister of State for Petroleum Resources pipeline will carry up to 30bn cubic metres per
Timipre Sylva told reporters in Abuja: “The year of gas from Warri in Nigeria’s Delta State to
Russians were with me in the office last week. Hassi R’Mel.
They are very desirous to invest in this project Speaking to NewsBase, Ian Simm, princi-
and there are lots of other people who are also pal advisor at consultancy IGM Energy, said:
desirous to invest in the project.” “Trans-Sahara plans have been on the drawing
He added: “This is a pipeline that is going board for at least 40 years, and while no pro-
to take our gas all through a lot of countries in gress had been made to-date, the fact that it is
Africa and also, all the way to the edge of the onshore would appear to give it favour. How-
African continent, where we can have access to ever, traversing the Sahara is no mean feat and
the European market as well,” expressing hope militant activity in the area may actually make
that the government might at least begin work the offshore line a more attractive proposition. If
on the pipeline before its term ends in a year’s Nigeria and Morocco can secure buy-in from the
time. array of countries the line would pass through,
The first 678 km of the line has, in effect, the NM line could act as a West African gas grid
already been built as the backers intend to make and derive political and financial support from
the new line an extension of the existing West the Economic Community of West African
Africa Gas Pipeline (WAGP), which runs from States (ECOWAS).”
Nigeria to western Ghana via Benin and Togo. Elsewhere in the region, Benin and Niger are
Sylva noted that funds have not yet been developing the 1,980-km Niger-Benin Export
secured for the pipeline’s development but Line, with Chinese contractors working to pipe
“many people are showing interest”. 90,000 bpd of Nigerien crude to the port of Seme
Meanwhile, news emerged this week that the by the end of 2023. While exporting crude and
OPEC Fund for International Development will LNG to global markets will remain an important
contribute $14.3mn to finance the front-end strategic pillar for African producers, projects to
engineering and design (FEED) work recently improve interconnectivity within the continent
awarded to Worley, with the Islamic Develop- appear to be building up head of steam not seen
ment Bank (IDB) providing more than $15mn. for around a decade.™

Week 18 05•May•2022 www. NEWSBASE .com P5