"Gas shortage casts doubt on $25bn Nigeria-Morocco pipeline"

" Gas shortage casts doubt on $25bn Nigeria-Morocco pipeline \r\nThe quest by the federal government to supply uninterrupted gas to the Nigeria-Morocco gas pipeline, a $25 billion project aimed at transporting Nigerian gas to Europe through Morocco, is being threatened by lingering gas supply challenges in the country, BusinessDay\u2019s findings have revealed.\r\n\r\nThe proposed pipeline, initiated in December 2016 after an agreement between the Nigerian National Petroleum Company (NNPC) Ltd. and the Moroccan government, is expected to connect Nigerian gas to every coastal country in West Africa (Benin, Togo, Ghana, Cote d\u2019Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, and Mauritania), ending at Tangiers, Morocco, and C\u00e1diz, Spain.\r\n\r\nThe federal government, through the ministry of state for petroleum (gas), assured stakeholders on Tuesday of uninterrupted gas supplies to the Nigeria-Morocco Gas Pipeline Project.\r\n\r\nBusinessDay findings showed concerns have grown about Nigeria\u2019s ability to meet the gas supply requirements of the pipeline.\r\n\r\n\u201cWe have not been able in 30 years to extend the 100 million standard cubic feet per day West African Gas Pipeline beyond Ghana, and supply can be epileptic,\u201d a senior industry operator in the gas sector told BusinessDay.\r\n\r\nHe added: \u201cNigeria is yet to complete the 48-inch, 127-kilometer, Obiafu-Obrikom-Oben Gas pipeline that would enable gas to move from the eastern delta to western Nigeria and feed their demand.\r\n\r\n\u201cThe Ajaokuta-Kaduna-Kano natural gas pipeline project is already over budget and over time, commercial operation of Escravos-Lagos Pipeline System-2 to double domestic pipeline capacity between East and West to 2bcf\/d has gone into voicemail as NNPC\u2019s stock of excuses has long been exhausted.\u201d\r\n\r\n\u201cYet we are talking about participating in and being the primary supplier for a 5300-km pipeline from here to Morocco. This is the kind of thing that makes Nigeria a laughing stock,\u201d the operator said.\r\n\r\nFor Chinenye Ajayi, team lead of the power and infrastructure practice at Olaniwun Ajayi LP, the lack of gas infrastructure to harness the gas potential within the country remains a big challenge.\r\n\r\n\u201cIn 2021, the federal government declared a decade of gas, yet not much progress has been made in this regard,\u201d Ajayi said.\r\n\r\nNigeria\u2019s \u2018Decade of Gas\u2019 is a government-led initiative aimed at harnessing the country\u2019s vast gas reserves to drive economic growth and development. It was launched on March 29, 2021, by then-President Muhammadu Buhari in Abuja. Under the plan, Nigeria will, in collaboration with other stakeholders, ramp up gas use in the decade from 2020 to 2030.\r\n\r\nThe \u2018Decade of Gas\u2019 initiative is built on the premise that gas is a key driver of economic growth and development. Nigeria has nearly 209 trillion cubic feet of natural gas reserve, which ranks as the ninth largest in the world, but harnesses only about 8 billion standard cubic feet per day of gas, and most of it is sent to the export market.\r\n\r\n\u201cThere have been several efforts essentially. Thankfully, the Petroleum Industry Act came in at some point but there is still a lot that has not yielded results,\u201d Ajayi said.\r\n\r\nEse Osawmonyi, a senior analyst at SBM Intelligence, said Nigeria is facing obstacles in supplying gas to both domestic and international vendors due to financing issues, flooding, growing domestic consumption, and security concerns.\r\n\r\nShe noted that due to Nigeria\u2019s infrastructure and security concerns, the country has failed to establish itself as a major exporter of liquefied natural gas to Europe.\r\n\r\n\u201cConflicting viewpoints between the government and experts underline the importance of conducting a full study of Nigeria\u2019s gas supply capacity as well as potential impediments to the Nigeria-Morocco pipeline project\u2019s ongoing feedstock supply,\u201d Osawmonyi said.\r\n\r\nShe added that failure to meet gas supply obligations can result in legal and financial consequences, harm the country\u2019s reputation as a dependable supplier, and strain international ties.\r\n\r\n\u201cDisruptions in gas deliveries might potentially reduce government earnings and deepen Nigeria\u2019s FX liquidity crunch,\u201d Osawmonyi said.\r\n\r\nIn 2022, NNPC Ltd. signed agreements on the gas pipeline project with the National Office of Hydrocarbons and Mines of Morocco and the ECOWAS Commission.\r\n\r\nThe federal government said the gas pipeline, designed to be 7,000km long, will contribute to accelerating access to energy for all, improving the living conditions of the populations, integrating the economies of the sub-region, and mitigating desertification.\r\n\r\nFor this to happen, experts said infrastructure projects, including pipelines, must be delivered on time, the country would have to transition to market-based gas pricing, settle historical debt to power plants, and incentivize fiscal and commercial terms for offshore non-associated gas developments."

"Gas shortage casts doubt on $25bn Nigeria-Morocco pipeline"

Top 5 African cities with the most unaffordable real estate in 2024AMP

NGX starts May on bullish note as investors gain N300 billionAMP

Aramco leads oil industry investment in AIAMP

Embracing green HR practices for environmental sustainabilityAMP

Stanbic employees donate to Nsawam Women’s PrisonAMP

Zimbabwe seeks full convertibility of ZiG currency, Finance Chief saysAMP

Europa League: Leverkusen beat Roma to put one foot in final; Marseille, Atalanta ends in a draw AMP

EPL: Chelsea shatter Spurs’ top four bid after 2-0 winAMP

Alex Ferguson, Mourinho and Pep Guardiola with combined wealth of $250m named the most successful football managersAMP

Top 5 African cities with the most unaffordable real estate in 2024AMP

NGX starts May on bullish note as investors gain N300 billionAMP

Aramco leads oil industry investment in AIAMP

Embracing green HR practices for environmental sustainabilityAMP

Stanbic employees donate to Nsawam Women’s PrisonAMP