ITo strengthen bilateral cooperation in West Africa, Equatorial Guinea and Nigeria have signed an agreement to build the Gulf of Guinea Gas Pipeline Project. The project is a joint regional pipeline project that will transport gas from Nigeria to Equatorial Guinea. Under the terms of the agreement, the gas will be processed at Equatorial Guinea’s LNG processing plants in Punta Europa on Bioko Island, owned by the state-owned company EG LNG. This indicates new opportunities for energy security based on bilateral cooperation.
The agreement, signed this week by Presidents Teodoro Obiang Nguema Mbasogo and Bola Ahmed Tinubu, outlines plans for a pipeline, an LNG plant, feedstocks and gas sales to energy companies and industrial customers, ensuring energy security and regional trade in West Africa.
“This agreement represents an important milestone in Equatorial Guinea’s GMH initiative and reinforces our position as a regional leader in gas monetization. By partnering with Nigeria on the Gulf of Guinea gas pipeline, we are not only strengthening bilateral cooperation but also regional collaboration to ensure a safe and reliable gas supply to our Punta Europa LNG plant for years to come. This project will unlock immense economic value for both our countries and advance sustainable development and energy security across the region,” said Antonio Oburu Ondo, Minister of Mines and Hydrocarbons of Equatorial Guinea.
The deal follows a number of milestones achieved, all aimed at improving the feedstock for Equatorial Guinea’s GMH at Punta Europa on Bioko Island. The plant, which began operations in 2007, was developed with the aim of monetising gas resources in both domestic and regional fields. It originally processed gas from the Alba field, but in the face of natural declines, alternative sources are being developed. Notably, energy producer Marathon Oil Corp. and energy giant Chevron signed an agreement with Equatorial Guinea in 2023 to advance the next phases of the GMH.
The first phase was completed in 2021 with the connection of the Alen field to the plant and first gas was delivered later that year. The second phase of the expansion project will process gas from the Alba field under new contract terms, while the third phase will bring a new gas field online by processing gas from the Aseng field operated by Noble Energy. These sequential phases directly address the production decline in Equatorial Guinea and further position Punta Europa as a world-class hub for monetizing local gas.
At the same time, Equatorial Guinea signed a bilateral trade agreement with Cameroon to mobilize cross-border wet gas fields in 2024. The countries agreed to jointly develop oil and gas projects along their shared maritime borders, including the Yoyo and Yolanda fields, the Etinde gas field, the Camen field and the Diega field.
The recent agreement with Nigeria will further cement Equatorial Guinea’s role as a regional infrastructure hub, increasing manufacturing and export capacity while monetizing untapped reserves in Nigeria.
As the voice of the African energy sector, the African Energy Chamber fully supports Nigeria and Equatorial Guinea in this groundbreaking agreement that promises progress and prosperity across West Africa.
