Nigeria and Equatorial Guinea sign landmark Gulf of Guinea gas pipeline agreement

In a significant step towards bolstering regional cooperation and mutual development, Nigerian President Bola Tinubu and Equatorial Guinean President Teodoro Obiang Nguema Mbasogo signed an agreement on the Gulf of Guinea Pipeline Project. The agreement, which was formalised during President Tinubu’s three-day official visit to Equatorial Guinea, aims to enhance gas exploration and create new employment opportunities in the region.

The signed agreement covers various critical aspects, including legislative and regulatory measures for the pipeline, its establishment and operation, the transit of natural gas, and ownership of the gas pipeline, alongside general principles governing the project.

During the signing ceremony, President Tinubu emphasised the importance of the agreement, noting that it would unlock new opportunities for gas exploration and generate employment, thus contributing to the economic growth of both nations. He highlighted the discussions held with President Mbasogo earlier in the day, which addressed key issues such as employment creation, food security, multilateral relations, and conflict resolution mechanisms across the African continent.

"Concerning Africa, conflicts and conflict resolution were discussed. We explored various areas of conflict and what we can do to promote peace," President Tinubu remarked. "We talked about the promotion of peace and stability in our countries, and the growth and prosperity of our continent."

President Tinubu further stressed the need for Africa to find home-grown solutions to its challenges, comparing the continent's situation to that of Europe and America, which have managed to resolve their conflicts through adequate capital, industrialisation efforts, research and development programmes.

The signing of the Gulf of Guinea Pipeline Project agreement was hailed as a strategic move for Africa's growth, with both leaders expressing optimism about the potential benefits it will bring to the region.

Nigeria's natural gas potential

Nigeria stands as a giant in Africa's energy landscape, boasting the largest natural gas reserves on the continent. Nigerian Content Development and Monitoring Board estimated that there are 209 trillion cubic feet (tcf) of proven natural gas reserves in country. This immense resource positions the country at the forefront of efforts to enhance energy security, not only within Africa but also in supplying clean energy to the rest of the world.

In 2016, Nigeria took a significant step towards realising this potential by entering into an agreement with Morocco to construct the Nigeria-Morocco Gas Pipeline (NMGP). This ambitious project, designed to promote regional integration and bolster energy security across West Africa, is set to provide an export route for African gas to Europe, thereby solidifying Nigeria’s role as a key player in the global energy market.

The NMGP project is supported by the Economic Community of West African States (ECOWAS), reflecting its strategic importance to the region. With an estimated cost of $25 billion, the pipeline is expected to have a capacity of 30 billion cubic meters of gas per year. This substantial infrastructure project will be executed in three phases, each meticulously planned to link up with existing gas networks, thereby ensuring a seamless and efficient flow of gas across borders.

The pipeline’s route will traverse several West African countries, ultimately connecting Nigerian gas supplies to Morocco and onwards to Europe via Spain. This not only opens new markets for Nigerian gas but also provides a reliable energy source for countries along the pipeline’s path, many of which currently struggle with energy access and security.

For Nigeria, the benefits of these project extend beyond mere economics. They serve as a strategic tool for fostering deeper regional cooperation and integration. By linking its energy infrastructure with that of neighbouring countries, Nigeria is playing a crucial role in promoting stability and development across West Africa.