The government of Niger has launched construction of on an oil pipeline that will link it to the coast through West African neighbor Benin. This is after Niger’s Oil Minister Foumakoye Gado inked a deal with Wang Zhong Cai, president of the China National Oil and Gas Exploration and Development Corporation, a CNPC subsidiary towards the development.
The 1,982km long pipeline is estimated to cost US $7bn. The plan is for the pipeline to run from the Agadem Rift Basin to Port Seme on the coast of Benin. 1,300km, will run within Niger, and the remainder in Benin.
Economic benefits
Phase one of the project will cost US $4bn. China National Petroleum Corp., which has operated in Niger since 2011, was tasked with building the pipeline along with the West African Oil Pipeline Company. The pipeline is expected to be completed by the end of 2021 and should allow throughput of around 90,000 barrels per day.
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Speaking during the launch ceremony, President Mahamadou Issoufou said that the project would produce other economic benefits in the oil sector, such as jobs for youth and further development of oil fields. “This phase of oil field operations is a historic moment for Niger since it is bound to restructure Niger’s economy. Oil accounts for 4% of GDP in Niger. By 2022, it’s expected to represent 24%. The project would also stimulate the building of power plants, a new airfield in Koulélé, and road and social infrastructure in areas the pipeline crosses,” said President Mahamadou.
Niger’s oil sector
Oil sector in Niger Niger has a long history of petroleum exploration dating back to the 1970s. However, it is only recently in 2011 that the petroleum industry of Niger was born with the opening of the Agadem oilfield and the Soraz refinery near Zinder. The oil and gas extracted from the Agadem field are processed at the Soraz refinery and products (gasoline, diesel and liquified natural gas) are primarily for domestic consumption.
With the the increase in reserves, Niger anticipates an increase in its production from 20,000 to 100,000 barrels per day by 2022 with 60,000 barrels per day for exports via Chad and Cameroon.
