Economy
NNPC Announces Plans for $8 Billion International Gas Pipeline Project
This announcement comes as the NNPCL and its partners are already engrossed in the construction of the Nigeria-Morocco gas pipeline, a colossal undertaking valued at $25 billion
The Nigerian National Petroleum Company Limited (NNPCL), under the leadership of its Group Chief Executive Officer, Mele Kyari, has unveiled its ambitious plan to construct yet another international gas pipeline estimated at a staggering cost of $8 billion.
This announcement comes as the NNPCL and its partners are already engrossed in the construction of the Nigeria-Morocco gas pipeline, a colossal undertaking valued at $25 billion. This pipeline aims to supply gas from Nigeria to 11 African nations and further transport it from Morocco to Europe.
During a panel session at the 8th Organisation of Petroleum Exporting Countries International Seminar in Vienna, Austria, Kyari revealed the details of the proposed pipeline.
According to a video clip released by the NNPCL in Abuja, Kyari said, “We are planning to build another pipeline through Niger Republic, which will then traverse Algeria before reaching Europe. The estimated cost for this venture ranges between $7 billion to $8 billion.”
In addition to the pipeline projects, Kyari emphasized the NNPCL’s commitment to expanding the existing Liquefied Natural Gas (LNG) facility through an additional train. The national oil company intends to double the facility’s capacity, consequently meeting the growing demand in the market.
Kyari explained that the NNPCL is actively engaged in numerous other gas projects, aimed at increasing gas penetration not only in Nigeria but also in neighboring countries.
Last month, a significant milestone was achieved when Nigeria, Morocco, Cote d’Ivoire, Liberia, Benin, and Guinea signed four Memoranda of Understanding (MoUs) for the Nigeria-Morocco Gas Pipeline Project.
The MoUs were signed at the headquarters of the Economic Community of West African States (ECOWAS) in Abuja, where the project’s steering committee convened to discuss progress and strategic direction.
The participating nations, represented by their respective oil companies, inked the tripartite agreements, solidifying their commitment to the project. The MoUs followed similar agreements signed with ECOWAS, Mauritania, Senegal, and The Gambia, Guinea-Bissau, Sierra Leone, and Ghana in previous months.
This collaboration will enhance the monetization of natural gas resources in these African countries while providing an alternative export route to Europe.
In an unrelated development, the NNPCL took to Twitter to confirm that no fuel subsidy had been paid to any oil marketer since 2016. This confirmation aligns with reports indicating that the NNPCL has been independently subsidizing petrol costs for several years.