April 25, 2024

Libya joins Morocco, Algeria in intense lobby to supply Nigerian gas to Europe

Samuel Agbelusi

The North African countries’ lobby for the construction of the Nigerian gas pipeline network has taken another dimension as Libya is planning to play a smart move on other  Maghreb countries in an effort to capitalise on European’s natural gas thirst on the sideline of Russia’s supply cut to countries like Finland, Poland, and Bulgaria.

Mohamed Aoun, Libya’s oil and gas minister, announced the proposal at a press conference in Tripoli, the country’s capital, at the weekend.

Nigeria with its abundant gas reserve is planning to ramp up gas production from the current eight billion standard cubic feet(8bscf) per day to 12.2bscf. The country’s proven gas reserve stands at 209.5 trillion cubic feet(tcf) and with over 600tcf unproven, this is according to NMDPRA.
EnergyDay gathered that the Libyan authority is seeking to optimise Europe’s contingency energy supply plan in the wake of the ongoing Russia-Ukraine war.
The Libyan officials have intensified efforts after they confirmed that discussions are ongoing with Nigeria petroleum ministry officials on the new proposalEnergyDay’s check showed that King Mohammed VI,  King of Morocco in a bid to supply gas to Europe initiated the Nigeria-Morocco Gas Pipeline in a December 2016 agreement between the Nigerian National Petroleum Corporation(NNPC) and the Moroccan Office National des Hydrocarbures et des Mines (National Board of Hydrocarbons and Mines) for a regional onshore and offshore  6,000 km gas pipeline, traversing the coastal areas of 15 West and North African countries, before crossing over to Europe.

That project was expected to ling the existing West African Gas Pipeline (WAGP), which has been pumping gas from Nigeria to Ghana, Benin, and Togo since 2010.
The Algerian-Niger-Nigerian $13 billion, 4,000 kilometers Trans-Saharan Gas Pipeline, has been on the drawing board since 2002.
Meanwhile, the Libyan Minister, Aoun said his ministry has presented a study to the Libyan government for the same proposed Nigeria gas pipeline to Europe.He revealed that the new thinking is for the pipeline to run through Libya instead of Algeria.

Ahmed Elghaber, Minister Aoun’s advisor, on his part told Libya Herald that the potential Nigeria-Libya gas pipeline would add to the possible African gas supply network.

Elghaber noted that Libya and Nigeria have discussed the idea at the African Petroleum Producing Organzation (APPO) meeting.

He explained that, in their mutual interest, as a major oil and gas producing country in Africa, Libya and Nigeria’s ministers of oil and gas compared preliminary notes on the matter in a recent oil ministerial meeting of African Petroleum Producers Organisation (APPO).Elghaber stated further that Libya and Nigeria explored possible plans to extend a desert-crossing pipeline from Nigeria to Europe crossing Libya and Niger.

He revealed that Libya’s cabinet has authorised the oil and gas ministry to conduct a grass-root study of such a potential pipeline in coordination with Nigeria.

However, Libya’s political stability is a prime factor in deciding the fate of this optional pipeline, Elghaber stressed.

Elghaber disclosed that there are two options available to deliver Nigerian gas to Europe. The first route is through Algeria, and this is a very likely route as the pipeline proposal is in a very advanced stage, he noted.

The other option is through a series of Western African countries following the western African coast and reaching Spain through Morocco.In July at Algiers, following months of negotiations, Algeria, Niger, and Nigeria signed a memorandum of understanding formalising the 4,000km Trans-Saharan Gas Pipeline (TSGP) project, which will enable Nigerian gas to be piped into Europe.

Events in Europe in the last 6 months have made gas-pipeline-to-Europe projects to be very lucrative. On the back of the Ukraine war, any additional gas to European markets in the current gas supply market would be highly appreciated.