DMEA: Trans Sahara deal signed

This week’s DMEA covers the signing of a tripartite deal to develop a long-awaited African gas pipeline and confirmation from Aramco that it is considering Asian investments.

A deal between the governments of Algeria, Niger and Nigeria is seen breathing new life into plans to build an ambitious gas pipeline that will link sub-Saharan Africa with European consumer markets.

The so-called ‘Declaration of Niamey’ was signed in the Nigerien capital last week during a forum held by the Economic Communities of West African States (ECOWAS) dedicated to the mining and petroleum industries.

The deal, signed by the energy ministers of the three countries, sets out plans for the development of a 4,128-km pipeline that will carry up to 30bn cubic metres per year of gas from Warri in Nigeria’s Delta State across Niger and on to Algeria’s Hassi R’Mel gas hub, from which it will be fed into existing infrastructure that runs to southern Europe. The price of the project has been estimated at $13bn, much of which is expected to be spent in Niger.

Timipre Sylva, Nigeria’s Minister of State for Petroleum Resources, said during the signing ceremony: “This project will be transformational for all the countries involved and we in Nigeria are committed wholly to making it a success. It will bring jobs and much needed revenue from gas monetisation.”

Meanwhile, Saudi Aramco’s President and CEO this week confirmed that the company is considering investments in China amid recent reports that it has resumed talks for the development of a refinery in the country.

Speaking during this week’s International Petroleum Technology Conference (IPTC) in Riyadh, Amin Nasser told local media: “China is an important part of the sector. Definitely, we are looking for more investment in China. And we are currently in discussions with a number of our partners in China.”

He did not provide any further information about ongoing conversations, but recent reports cited company officials as saying that Aramco has resumed talks to build a $10bn refining and petrochemicals complex at Panjin in north-eastern China’s Liaoning Province.

Originally announced in 2017 as part of China’s One Belt, One Road international infrastructure initiative, Aramco agreed a deal with China North Industries Group Corp. (Norinco) for the development of facilities with a projected refining capacity of 300,000 bpd alongside 1.5mn tonnes per year of ethylene and 1.3mn tpy of paraxylene.