Dear Readers,
Nigeria, with over 210 trillion cubic feet of proven natural gas reserves, the largest in Africa and the eighth largest globally, still struggles to fully harness this wealth, as inadequate pipeline infrastructure leaves much of the gas stranded. Against this backdrop, the recent Joint Communiqué signed in June between Nigeria and Equatorial Guinea on the Gulf of Guinea Gas Pipeline (GOGGP) to advance the implementation roadmap is both timely and transformative.
Under the communiqué, the Parties agreed to constitute a Joint Steering Committee and a Sub-Committee on Gas Supply, comprising key institutional players from Nigeria's Ministry of Petroleum Resources, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Equatorial Guinea's Ministry of Hydrocarbons, SONAGAS, alongside the project developers Gas Invest Limited and Amitee Global. Their mandate spans gas supply security, incorporation of the holding and pipeline companies, and finalisation of the International Project Agreement (IPA) (the contractual backbone of the project).
The roadmap also includes the ratification and deposit of institutional documents with the United Nations, as well as the inauguration of inter-agency committees. These steps underscore the Parties' recognition that only a strong legal and regulatory framework can anchor cross-border projects of this magnitude.
The GOGGP, a proposed $2.5 billion, 200-kilometre pipeline, will transport Nigerian gas to Equatorial Guinea for processing at the Punta Europa LNG facilities. While Nigeria contributes abundant reserves, Equatorial Guinea brings to the table advanced liquefaction infrastructure that currently suffers from underutilisation due to limited domestic feedstock. This is a case of regional teamwork, leveraging their strengths to create mutual benefits and putting idle resources to use.
In 2022, Nigeria and Equatorial Guinea signed a Memorandum of Understanding (MoU) to supply gas from Nigeria's offshore fields to the Punta Europa Gas Processing Facility in Equatorial Guinea. This new Treaty builds on that foundation, going further by creating binding obligations and institutional frameworks. Importantly, it signals Nigeria's gradual shift from bilateral MoUs to treaty-backed, enforceable agreements, thus reflecting a more mature approach to regional cooperation.
For Nigeria, the GOGGP offers a bridge solution to monetise its gas reserves by leveraging Equatorial Guinea's existing infrastructure, even as it continues to expand domestic processing and export capacity. It also serves as a test case for Nigeria's ability to manage cross-border projects and align regulatory frameworks. Importantly, the project complements other strategic initiatives such as the Nigeria–Morocco Gas Pipeline and the Trans-Saharan Gas Pipeline. Collectively, these projects position Nigeria as a rising hub for global gas exports, aligning with the global energy diversification agenda and Nigeria's industrialisation ambitions.
Beyond exports, the GOGGP also strengthens regional infrastructure, encourages cross-border trade, and deepens economic ties between African states. In this way, it advances the AfCFTA's core objective of unlocking intra-African trade and building a more interconnected continental economy.
To ensure that this project is not lost in the graveyard of ambitious but unimplemented or delayed infrastructure treaties, four priorities stand out:
- Bankability – the International Project Agreement must incorporate watertight provisions on financing, offtake guarantees, and sovereign support to avoid execution risk.
- Regulatory coherence – Nigeria and Equatorial Guinea must align legislation and fiscal regimes to prevent jurisdictional conflicts.
- Security assurance – both countries must prioritise maintaining peace and stability within their territories to safeguard the project from disruptions. The crisis in parts of the Sahel and its spillover effects on the Nigeria–Morocco Gas Pipeline offer a cautionary lesson on how insecurity can derail regional energy ambitions.
- Dispute resolution – credible international arbitration and enforceability provisions are critical to reassure investors.
Ultimately, the test lies in whether Nigeria and Equatorial Guinea can demonstrate the urgency and discipline required to move from communiqué to contract, and from contract to infrastructure. In this 'Decade of Gas,' every delay is more than lost time; it is lost market share.
To view original Tope Adebayo article, please click here.
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