NNPC to Decide on $25 Billion Gas Pipeline by December

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NNPC to Decide on $25 Billion Gas Pipeline by December

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Nigeria on the Map (© Shutterstock/hyotographics)
Nigeria on the Map (© Shutterstock/hyotographics)

The Nigerian National Petroleum Corporation (NNPC) expects to make a final investment decision on a $25 billion gas pipeline project with Morocco by December 2024, Business Day reported on Wednesday, March 20, citing information from the company's CEO.

According to the reports, Mele Kyari, Group Chief Executive Officer of NNPC Ltd., announced the timeline on Tuesday, March 19, during a leadership dialogue at the CERAWeek conference in Houston. 

Currently in advanced stages, the Nigeria-Morocco Gas Pipeline (NMGP) project would transport gas through 13 African countries to Europe.

Kyari emphasised the importance of NNPC, Africa's largest oil and gas company, to Nigeria's economic development. 

He highlighted the reforms introduced by the Petroleum Industry Act (PIA) of 2021, transforming NNPC Ltd. into a commercially-driven entity accountable to shareholders and potentially listed on the stock exchange.

In a separate statement, Kyari addressed the ongoing issue of crude oil theft in Nigeria. He acknowledged the challenges but expressed confidence in improvements due to government and private security collaboration. 

Increased production and investor confidence were cited as positive developments. Kyari also pointed to a rise in Nigeria's crude oil production from below 1 million barrels per day in 2022 to 1.7 million barrels per day currently.

Kyari argued for a nuanced approach to energy transition, particularly for sub-Saharan Africa. He emphasised the need for energy security before transitioning away from fossil fuels, considering many countries lack basic energy access. The high cost of renewable energy was also mentioned as a hurdle.

"For us today, the transition must be differentiated," Kyari said, noting Africa's minimal contribution to global emissions. He stressed NNPC's focus on utilising Nigeria's gas resources as a cleaner alternative fuel for domestic use and export.

While acknowledging the push for energy transition, Kyari identified gas as the most affordable path. He pointed to ongoing infrastructure projects aimed at expanding Nigeria's gas network.

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