Equatorial Guinea LNG terminal to receive Nigerian gas: press
Nigeria and Equatorial Guinea have agreed a memorandum of understanding to bring Nigerian gas to the Punta Europa LNG terminal in Equatorial Guinea, advancing Abuja's "Decade of Gas" initiative to benefit the Nigerian economy, local media reported on March 1.
The agreement was signed on the sidelines of the fifth Nigeria International Energy Summit in Abuja by Nigeria's minister of state for petroleum resources, who promised it would unlock major inflows of funding from its neighbour.
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Abuja believes the partnership will provide access to global gas markets via Equatorial Guinea's processing and liquefaction plant within 18 to 24 months, describing it as the "fastest timeline to market for a Nigerian offshore gas asset." The project involves building an offshore gas pipeline to connect undeveloped Nigerian gas fields that lack domestic export infrastructure.
The Punta Europa LNG terminal has a capacity of 3.7mn metric tons/year. Its owners include Marathon Oil, Sonagas, Mitsui and Marubeni.
Equatorial Guinea's minister of mines and hydrocarbons Gabriel Lima said the MoU would protect the country's market share amid the shift toward a low-carbon global economy. Russia's war in Ukraine is another factor that is expected to change the state of play in the global LNG market.
"As the global geopolitics of natural gas evolves and within the context of the world transitioning to a lower carbon footprint, it is imperative that we think differently on how to remain an important player in energy markets," Lima said. "New, fast, and competitive sources will be a major determinant of success.
“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,” he said.