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Discussion Starter · #1 ·


Providing FEED services for a gas pipeline in West Africa

NMP-pipeline-map
Location of the Nigeria-Morocco Gas Pipeline

26 April 2022
We've been awarded a contract to provide main front-end engineering design (FEED Phase II) services for the Nigeria-Morocco Gas Pipeline (NMGP) project. The engineering study is progressing in accordance with the initial project planning.

When completed, the over 7,000 km long gas pipeline, being promoted by Office National des Hydrocarbures et des Mines (ONHYM) of Morocco and Nigerian National Petroleum Corporation (NNPC) of Nigeria, will link Nigeria with Morocco, cross 11 west African countries and extend to Europe. It will be the longest offshore pipeline in the world and the second longest pipeline overall.
The NMGP pipeline is expected to traverse 13 countries, and will help to boost local industries and economies by delivering a reliable and sustainable energy source. It will also support industrial development and create employment opportunities.
Additionally, the pipeline will provide a new avenue for countries along the route to export their gas to their neighboring countries and Europe.
Delivering this project requires expertise from all over the world.
The overall FEED services will be managed by Intecsea BV, our offshore engineering consultancy business in The Hague, the Netherlands. This includes the development of the project implementation framework and supervision of the engineering survey.
The onshore FEED scope, the Environmental and Social Impact Assessment (ESIA) and Land Acquisition Studies (LAS) will be delivered by our team in London, UK. The project will also be supported by our network of offices in Africa, and our global integrated delivery team in Hyderabad, India.
Advisian, our global consulting business, will explore the acceleration of electrification and the feasibility of energy self-sufficiency in the region. Our UK and Madrid offices will set out the potential to use renewable energy resources to power the pipeline and reduce the project’s carbon footprint.
“Being part of a project that not only looks towards sustainability, but also contributes to boosting regional economy and supports the development of local communities is an incredible opportunity,” said Ping Liu, Managing Director of Intecsea BV.
“The NMGP is a project that reflects our purpose of delivering a more sustainable world. We look forward to working with ONHYM and NNPC as we journey into a new chapter for West Africa.”

 

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Discussion Starter · #2 ·
Islamic Development Bank has also committed some financing to the Front-End Engineering Design (FEED) Study for the Nigeria-Morocco Gas Pipeline (NMGP) project


Signature of Financing Agreements related to the Front-End Engineering Design Study Project for Nigeria – Morocco Gas Pipeline
20 December 2021


Rabat-Abuja-Jeddah 20 December 2021 The Islamic Development Bank, represented by Mr. Mansur Muhtar, the Vice President, the Moroccan Government, represented by the Minister of Economy and Finance, Mrs. Nadia Fettah, and ONHYM (Office National des Hydrocarbures et des Mines) represented by Mrs. Amina Benkhadra, General Director, signed at a virtual ceremony held on 20 December 2021 the financing agreements related to the Front-End Engineering Design (FEED) Study for the Nigeria-Morocco Gas Pipeline project. The ceremony was attended by SG of the Ministry of Energy Transition and Sustainable Development.
The addresses made by the representatives of the Government of Morocco, ONHYM, and IsDB highlighted the key and strategic role of the project as a step towards strengthening energy security in the region, contributing to economic and social development of the countries crossed and the regional economic integration, enhancing of world intra-trade and exports in the African continent, and creating a common energy space for connectivity of IsDB member countries.
It was recalled the recommendations made by His Majesty King Mohammed VI, through his address to the participants at the 44th annual meeting of the Islamic Development Bank in Marrakech on 5 April 2019, during which the pipeline project linking Nigeria and Morocco was presented as a model of south-south cooperation, eligible for financing from the IsDB Group since most of the interested countries are members of the Group.
The Front-End Engineering Design (FEED) study (The “Project”) is an important milestone for a strategic project: the Nigeria Morocco Gas Pipeline (NMGP) project sponsored by His Majesty King Mohammed VI and His Excellency President Muhammadu Buhari
The Project aims at preparing the required studies for the gas pipeline and help taking the Final Investment Decision (FID) by 2023 for the infrastructure project. The specific objectives of IsDB financed component of the project are to: (i) Perform the Environment and Social Impact Assessment (ESIA) in order to ensure the project compliance to all local and international environmental and social regulations and standards (ii) Develop the Land Acquisition Studies for agreeing with all countries to be crossed by the NMGP on the processes to obtain the right of ways for the pipeline to ensure smooth implementation of the works at a later stage.
As per the agreement between Morocco and Nigeria Governments, both countries will share equally the Project cost which is estimated at USD 90.1 million. The IsDB will support the Moroccan contribution and participate in the financing of the project up to an amount of USD 15.45 million under “Service Ijara” operation. For the Nigerian Contribution, the IsDB Bank has just approved financing of an amount of USD29.75 million which will bring the contribution of the Bank to 50% of the total cost of the FEED study of the Nigeria – Morocco Gas Pipeline.
 

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Discussion Starter · #3 ·
OFID to finance part of phase II of Nigeria-Morocco Gas Pipeline’s FEED

  • 22 hours ago
gas-pipeline.ashx.jpg


The project is intended to be a catalyst for the economic development of the North-West African region.

Morocco and the OPEC Fund for International Development (OFID) have signed the legal documentation on the partial funding of the second phase of the Nigeria-Morocco Gas Pipeline (NMGP) project’s Front End Engineering Study (FEED).



“Through an exchange of correspondence with OFID Director-General Abdulhamid Al Khalifa and with Amina Benkhadra, Director-General of the National Office of Hydrocarbons and Mines (ONHYM), the Minister of Economy and Finance Nadia Fettah signed the legal documentation relating to the $14.3 million financing granted by the OPEC Fund to ONHYM as part of its contribution to the financing of the second phase of the Front End Engineering Study of the gas pipeline linking the Federal Republic of Nigeria and the Kingdom of Morocco,” the ministry said in a statement on Friday.



Co-funded by the Islamic Development Bank (IDB), the study consists in preparing the documentation for the implementation of the NMGP project and in finalising the related technical, financial and legal analyses, according to the same source.



The NMGP Strategic Project was initiated by His Majesty King Mohammed VI and President Muhammadu Buhari of Nigeria. A cooperation agreement was signed in that regard in May 2017. The project is intended to be a catalyst for the economic development of the North-West African region. It carries a strong desire to integrate and improve the competitiveness and economic and social development of the region, through the development of the NMGP project.



It also aims to boost the regional economy through the promotion of economic development in North West Africa, the development of job-generating industries, the reduction of gas “flaring” and the use of reliable and sustainable energy.



Through its support for this project, a model of South-South cooperation, OPEC Fund strengthens, by the same token, its financial cooperation relations with Morocco and contributes to the economic and social dynamics of the Kingdom, the statement concluded.



The Nigeria-Morocco Gas Pipeline was proposed 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) (ONHYM). The pipeline would connect Nigerian gas to every coastal country in West Africa (Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, and Mauritania), ending at Tangiers, Morocco, and Cádiz, Spain. It would apparently be an extension of the existing West African Gas Pipeline, which already connects Nigeria with Benin, Togo, and Ghana.



In August 2017, NNPC and ONHYM began a feasibility study for the pipeline. The pipeline is estimated to cost $25 billion, and would be completed in stages over 25 years.



NNPC and ONHYM completed the feasibility study for the construction of the pipeline in January of 2019.



The OPEC Fund for International Development (OFID) also signed recently a $100 million loan agreement with the government of Morocco to help build an inclusive financial sector as part of broader efforts to modernise the economy and support the Kingdom’s recovery from the COVID-19 pandemic.



Under the “Financial and Digital Inclusion Programme”, co-financed with the World Bank, the government of Morocco will implement reforms to provide households and firms with affordable, transparent and sustainable financial services – a key plank in its five-year strategy that aims to create a more enabling business environment.



The programme will help expand digital financial services, such as insurance, credit and banking, to provide individuals and small businesses with increased and easy access to financial systems.



The OPEC Fund’s loan will cover two main pillars. The first aims to ensure financial inclusion by diversifying financing and payment sources for individuals and micro, small and medium-sized enterprises (MSMEs) by leveraging technology and supporting alternative financing models and infrastructure.



The second goal is to finance reforms to help digital entrepreneurs and MSMEs harness economic opportunities, while nurturing the economic inclusion of youth, women and graduates.



OPEC Fund Director-General Dr Abdulhamid Alkhalifa said, “Inclusive innovation is a key enabler of sustainable development. This loan, which focuses on financial and digital inclusion, will help to empower the more vulnerable and impacted populations such as youth, women, small businesses and entrepreneurs and bolster the country’s long-term sustainable economic recovery.”



OFID was established in January 1976 by the then 13 member countries of OPEC, including the United Arab Emirates. The development finance institution is established as an aid channel to developing countries.

 

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View attachment 3140959

Providing FEED services for a gas pipeline in West Africa

NMP-pipeline-map
Location of the Nigeria-Morocco Gas Pipeline

26 April 2022
We've been awarded a contract to provide main front-end engineering design (FEED Phase II) services for the Nigeria-Morocco Gas Pipeline (NMGP) project. The engineering study is progressing in accordance with the initial project planning.

When completed, the over 7,000 km long gas pipeline, being promoted by Office National des Hydrocarbures et des Mines (ONHYM) of Morocco and Nigerian National Petroleum Corporation (NNPC) of Nigeria, will link Nigeria with Morocco, cross 11 west African countries and extend to Europe. It will be the longest offshore pipeline in the world and the second longest pipeline overall.
The NMGP pipeline is expected to traverse 13 countries, and will help to boost local industries and economies by delivering a reliable and sustainable energy source. It will also support industrial development and create employment opportunities.
Additionally, the pipeline will provide a new avenue for countries along the route to export their gas to their neighboring countries and Europe.
Delivering this project requires expertise from all over the world.
The overall FEED services will be managed by Intecsea BV, our offshore engineering consultancy business in The Hague, the Netherlands. This includes the development of the project implementation framework and supervision of the engineering survey.
The onshore FEED scope, the Environmental and Social Impact Assessment (ESIA) and Land Acquisition Studies (LAS) will be delivered by our team in London, UK. The project will also be supported by our network of offices in Africa, and our global integrated delivery team in Hyderabad, India.
Advisian, our global consulting business, will explore the acceleration of electrification and the feasibility of energy self-sufficiency in the region. Our UK and Madrid offices will set out the potential to use renewable energy resources to power the pipeline and reduce the project’s carbon footprint.
“Being part of a project that not only looks towards sustainability, but also contributes to boosting regional economy and supports the development of local communities is an incredible opportunity,” said Ping Liu, Managing Director of Intecsea BV.
“The NMGP is a project that reflects our purpose of delivering a more sustainable world. We look forward to working with ONHYM and NNPC as we journey into a new chapter for West Africa.”

this is so relevant right now.
Africa and European cooperation is the future.
get rid of china, russia.
let's connect africa more to europe and less to those rogue places and it will benefit all of us.
 

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Future indeed(big tongue in cheek)! A plot twist however; most Africans will tell you that the true "rouges place" are spread around western Europe and a certain other place.
 

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this is so relevant right now.
Africa and European cooperation is the future.
get rid of china, russia.
let's connect africa more to europe and less to those rogue places and it will benefit all of us.
Are you out of your f-ing mind? Why would Africa do that? :rolleyes:
 
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Throughout history the world have gifted low-hanging fruit after low-hanging fruit to Nigeria, begging the country to be rich, but each time Nigeria has replied "no thanks".

Natural gas has been given legs again due to two issues. Firstly the shift to renewables is perhaps too ambitious to side-line natural gas, secondly the Russia issue. Of course the two issues also intersect. Another low hanging fruit (no pun intended) is Indonesia's new partial oil palm ban.

Nigeria has to be aggressive to capitalise on these opportunities. On the natural gas front, the second wind is not simply the export market but the investment potential. We now have a greater viability for investors to come in and rejuvenate the sector. I hope they are not stifled by legislative unreadiness.

The world are weary of natural gas, this is nothing but a reprieve, the opportunity will come and go.
 
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Discussion Starter · #8 ·
Throughout history the world have gifted low-hanging fruit after low-hanging fruit to Nigeria, begging the country to be rich, but each time Nigeria has replied "no thanks".

Natural gas has been given legs again due to two issues. Firstly the shift to renewables is perhaps too ambitious to side-line natural gas, secondly the Russia issue. Of course the two issues also intersect. Another low hanging fruit (no pun intended) is Indonesia's new partial oil palm ban.

Nigeria has to be aggressive to capitalise on these opportunities. On the natural gas front, the second wind is not simply the export market but the investment potential. We now have a greater viability for investors to come in and rejuvenate the sector. I hope they are not stifled by legislative unreadiness.

The world are weary of natural gas, this is nothing but a reprieve, the opportunity will come and go.
This really confused me mate, are you saying Natural gas prospects are good or bad for Nigeria.

perosnally I don’t think there’s anything low hanging or easy about raising $25 billion to finance the worlds longest subsea pipeline (Asin this is a project far more complex than the infamous Nord stream 2)

the pipeline also meanders thought the territorial waters of 7-8 other counties before it arrives Morocco, imagine the politics involved in getting these countries onboard.
 

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I am saying Nigeria's oil and gas progression over the past 30 years has been relatively mediocre. We made it difficult for investors. Now what Nigeria really has is POTENTIAL at a point in time when the world wants to move away from natural gas. You shouldn't be talking about potential at this sunset.

The types of reserves we have in Nigeria (fossil fuel reserves) are relatively speaking low hanging fruit. These intercontinental pipelines would have been at a much more advanced stage if we didn't mire our oil/gas sector in a web of confusion. Nigeria's gas reserves are nothing to sneeze at. So where has the investment been? We have been talking about Nigeria to Algeria and Nigeria to Morocco for a very long time. These projects are not exactly new in concept. If we search SSC, I am sure there are at least 20 threads.

Natural gas growth will peak in the next 15 years before plateauing, the infrastructure we are speaking of now should already have been completed.

It is the same for Oil, where Angola and Nigeria make up most of OPEC's shortfall today. That is low hanging fruit.

What I am saying in so many words is, this word 'potential' is not how anybody or country becomes rich. We have to be very aggressive with our oil/gas sector, which would be the complete opposite to what we have been doing thus far. With this $25 billion project for example, there is no room for delay. The Nigerian government have become too infatuated with possibilities, but delays are killing us. Global markets turn very quickly. Right now we are on the path of least resistance, tomorrow we may not be.

and I understand that these projects are multilateral, but lets be honest, Nigeria is likely the weak link in these equations. If our infrastructure was in better shape, it would be much easier to navigate the waters offshore (pun intended). Just look at how many billions of investments the PIB cost us. This is not me being pessimistic, I am essentially saying we need to do things different from now on. Our current way of doing this will get us nowhere.
 

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I am saying Nigeria's oil and gas progression over the past 30 years has been relatively mediocre. We made it difficult for investors. Now what Nigeria really has is POTENTIAL at a point in time when the world wants to move away from natural gas. You shouldn't be talking about potential at this sunset.

The types of reserves we have in Nigeria (fossil fuel reserves) are relatively speaking low hanging fruit. These intercontinental pipelines would have been at a much more advanced stage if we didn't mire our oil/gas sector in a web of confusion. Nigeria's gas reserves are nothing to sneeze at. So where has the investment been? We have been talking about Nigeria to Algeria and Nigeria to Morocco for a very long time. These projects are not exactly new in concept. If we search SSC, I am sure there are at least 20 threads.

Natural gas growth will peak in the next 15 years before plateauing, the infrastructure we are speaking of now should already have been completed.
That's not quite accurate - unless by "progression" you actually mean exportation.

The reality is that natural gas use in the Nigerian economy has probably more than quintupled over the past 30 years - in electric power generation, fertilizer production, petrochemicals, household (LPG) and sundry other industrial usage, etc.

Nigerians should not only seek/find economic "value" in exportation (as also appears implicit in the reference to palm oil). Reality is that increased domestic gas utilization probably adds much more value to the Nigerian economy and would contribute a lot more to national GDP than simply exporting it (especially when Nigeria has so little influence/control on international pricing).
 

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Discussion Starter · #11 ·
The types of reserves we have in Nigeria (fossil fuel reserves) are relatively speaking low hanging fruit. These intercontinental pipelines would have been at a much more advanced stage if we didn't mire our oil/gas sector in a web of confusion. Nigeria's gas reserves are nothing to sneeze at. So where has the investment been? We have been talking about Nigeria to Algeria and Nigeria to Morocco for a very long time. These projects are not exactly new in concept. If we search SSC, I am sure there are at least 20 threads.

Natural gas growth will peak in the next 15 years before plateauing,
Any source? Is your source “trust me bro “ ??
AKK project which is over73% complete takes gas from OB3 pipeline all the way to kano, this means we have completed virtually 90% of the Transa Sahara pipeline that will run through our territory.

investment in oil & gas is very long term so the oil we are pumping today is from investment decisions made decades ago. the delay in the passage of the PIA for over 16 years by a corrupt and incompetent political class caused soo much anxiety among the IOC's, for decades they basically took a "siddon look" approach this is why investment in our oil &gas industry basically dried up within the last decade, IOC's don't do uncertainty.

What I am saying in so many words is, the word 'potential' is not how anybody or a country becomes rich. We have to be very aggressive with our oil/gas sector, which would be the complete opposite to what we have been doing thus far. With this $25 billion project for example, there is no room for delay. The Nigerian government have become too infatuated with possibilities, but delays are killing us. Global markets turn very quickly. Right now we are on the path of least resistance, tomorrow we may not be.
these things follow a process, both feasibility studies and Phase 1 of the FEED are complete, ISDB is funding phase 2 with $90 million, again let me just repeat that $25bn is a huge sum of money, a project this size wouldn't be at the mercy of the federal government alone.

and I understand that these projects are multilateral, but lets be honest, Nigeria is likely the weak link in these equations. If our infrastructure was in better shape, it would be much easier to navigate the waters offshore (pun intended). Just look at how many billions of investments the PIB cost us. This is not me being pessimistic, I am essentially saying we need to do things differently from now on. Our current way of doing this will get us nowhere.
so you just assume Nigeria is the weak link ? what does infrastructure have to do with laying subsea pipelines ?
Yeah umbrella party really f**ked the entire country by delaying the PIB for 16 years, the progress we would have made by now would be have been outstanding, especially in local content, developmet of host communities and profits from a better sharing formula.
 

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Why would your immediate reaction be to assume that someone does not have a source lol.


I am referring specifically to the growth in demand.

As for Joblessbeggar's point, the low-base of Nigeria's natural gas is astonishingly very low. All I am doing is injecting a sense of realism here. We don't need to argue of export versus domestic consumption, our gas PRODUCTION is relatively very low. Which means that BOTH domestic consumption AND exports are low.

The $25 billion investment is not trivial, which is exactly my point, as the growth in demand plateaus, such large investment drives may become NONEXISTENT. The global energy picture is always distorted in the public's view.

Energy reserves and production viability are always uncertain. For example the potential in rare earths (which by the way are not rare) can change overnight, which would immediately change the energy landscape.

In fact the costs of both the Nigeria - Algeria and Nigeria - Morocco pipelines are significantly more expensive than we should be footing today, after a 20 year delay with the former for example.


We underestimated competition in the global market. Let us accept that. While we can say we should be looking inwards, well that will have ramifications for FDI (which has plateaued). Let me know if you need a source.

I do not view this as a party issue, but one deeply entrenched in the country. I should be clear. I am a big fan of this project, but I am crying for a sense of urgency.

The very project that you mentioned was supposed to be operational in 2020.


and well yes I think it is fair to assume Nigeria as a weak link. Given the stature of Algeria in pipeline infrastructure and gas infrastructure, and Morocco's relatively more stable environment compared to Southern Algeria and Southern Nigeria. This is just a matter of opnion.
 

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As for Joblessbeggar's point, the low-base of Nigeria's natural gas is astonishingly very low. All I am doing is injecting a sense of realism here. We don't need to argue of export versus domestic consumption, our gas PRODUCTION is relatively very low. Which means that BOTH domestic consumption AND exports are low.
There's a reason that I specifically highlighted "progression" (and even went so far as to distinguish it from exportation, in case you were actually referring to the latter instead), and the factual reality is that your assertion that Nigeria's gas "progression over the past 30 years" (1992-2022) has been "mediocre" is blatantly inaccurate.

Progression is disparate from "relatively low" production (btw, relative to what or who?), and the factual reality is that, over the past 30 years, Nigeria has progressed from miniscule production (with all gas production being "associated" gas - and which were then mostly flared) to dedicated ("non-associated") exploration and production, and becoming the world's 12th largest producer (as well as the 10th largest exporter).

Over the past 30 years, Nigeria has progressed from 4 gas-powered power plants to 25 gas-powered plants, from 1 urea fertilizer plant to 3 massive plants, including two of the largest plants in the world (Eleme Indorama, which is the world’s largest single-train urea plant and the Dangote plant), and is about to turn from one of the world's leading importers of fertilizers to an exporter.

Apart from the West African Gas Pipeline Project launched in 2006, which supplies several West African nations with Nigerian gas from the Niger Delta, Nigeria has progressed over the past 30 years to a near-geometrical growth in domestic gas supply for local industrial and household usage. Shell Nigeria Gas, incorporated in 1998, supplies industries in Agbara, Otta, Port Harcourt and the Aba cluster, while Gaslink supplies industrial customers in the South-South and Ogun State (Ibefun-Ososa), as well as almost 200 manufacturers in Lagos. There are also several producers of Compressed Natural Gas, which was non-existent 30 years ago.

Yes of course Nigeria could have done better (and btw while delay in passing the PIB introduced uncertainty in respect of future investments, so-called "militancy" and insecurity was a much bigger deterrent to investment), but, with all due respect, to shrug off the significant investment and development in Nigerian gas production and utilization over the past 30 years as anything even resembling "mediocre" betrays a gross misapprehension of the sector.
 

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Energy reserves and production viability are always uncertain. For example the potential in rare earths (which by the way are not rare) can change overnight, which would immediately change the energy landscape.

We underestimated competition in the global market.
Let us accept that. While we can say we should be looking inwards, well that will have ramifications for FDI (which has plateaued). Let me know if you need a source.
Not even the rarest of "rare earths" will significantly affect gas (and oil) as a cheap and cost-efficient energy source, nor the energy independence and security it offers to Nigeria. Unfortunately, the mindset on display here is sadly that of so many Nigerians/Africans (and sadly most of their governments) who misguidedly primarily equate/assign economic value to exportation (almost always of raw material) to "the global market", when in reality even if Nigeria does not export a single cubic feet of gas it would still derive massive economic value and benefit therefrom.

In fact the costs of both the Nigeria - Algeria and Nigeria - Morocco pipelines are significantly more expensive than we should be footing today, after a 20 year delay with the former for example.
Dude, you have to balance whatever "cost" of the delay with the benefit of MUCH BETTER TECHNOLOGY that has since become available. Costs are not always in nominal terms.
 

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I am still shocked nigeria has not developed a controlled and reliable electric grid and does not have her own refineries.
it's crazy.
I know it's hard to manage a 200m diverse country with tens of tribes and only 60 years of indipendence.
and where education levels are not affordable for many and many.
but they could ally with foreign states to import technology
 

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I am still shocked nigeria has not developed a controlled and reliable electric grid and does not have her own refineries.
it's crazy.
I know it's hard to manage a 200m diverse country with tens of tribes and only 60 years of indipendence.
and where education levels are not affordable for many and many.
but they could ally with foreign states to import technology
This seems to summarize the situation pretty well :


Electricity is truly one major issue, and probably the reason why so many projects linger.
If I'm not wrong they contracted a company from the Germany in order to progressively upgrade the network. Hopefully Nigeria will have a decent grid by 2030...

But surely it is ironic that a country providing cheap energy to the rest of the world is lacking... Electricity ...
 

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Discussion Starter · #18 ·
This seems to summarize the situation pretty well :


Electricity is truly one major issue, and probably the reason why so many projects linger.
If I'm not wrong they contracted a company from the Germany in order to progressively upgrade the network. Hopefully Nigeria will have a decent grid by 2030...

But surely it is ironic that a country providing cheap energy to the rest of the world is lacking... Electricity ...
Very well made video, they basically covered 90% of the problem, gas supply to the Generation companies, a TCN grid that can only carry about 5,000MW of the installed 13,000MW and distribution companies unable to make money.

However they failed to properly cover one very important aspect, lack of meters which has led to this ugly situation of estimated billing and Nigerians simply aren’t ready to pay the right price for power, just like petrol, the Federal government spends almost N500 billion yearly to subsidise power.


So basically customers don’t pay for power —> therefore these private distribution companies (Discos) can’t pay NBET (Nigerian bulk electricity trading company) —> NBET owes money to the Generation companies (Gencos)—> Gencos owe money to the gas suppliers.

this is why Gencos are struggling to grow their capacity and we don’t see any new investment in the sector.
 

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I am still shocked nigeria has not developed a controlled and reliable electric grid and does not have her own refineries.
it's crazy.
I know it's hard to manage a 200m diverse country with tens of tribes and only 60 years of indipendence.
and where education levels are not affordable for many and many.
but they could ally with foreign states to import technology
Nigeria has four refineries. They simply are not producing (albeit they are undoing a substantive rebuild ATM), probably because there's a lot of money (including rent-seeking) to be made from importation of petroleum products.

Furthermore, a Nigerian is building the world's biggest single-train refinery, which should be commissioned this year and should turn Nigeria from an importer of products to an exporter of same.

Meanwhile, in what appears ironic, Nigeria actually exports electricity to Togo, Burkina Faso, Benin Republic and Niger Republic, but that's probably to keep those nations from damming the River Niger.

Btw, Nigeria has more than enough educated citizens to whip the nation into ship shape. It is the innovation hub of Africa and its graduates are strewn across the globe, but suffers complex structural and institutional issues.
 

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Discussion Starter · #20 ·
FEC approves NNPC, ECOWAS deal on Nigeria-Morocco gas pipeline



The pipeline would traverse 15 West African countries to Morocco and Spain.



The Federal Executive Council (FEC) has given approval for the NNPC to enter into an agreement with ECOWAS for the construction of the Nigeria-Morocco Gas Pipeline.

Minister of State for Petroleum Resources, Timipre Sylva, briefed State House correspondents after the FEC meeting presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.

Mr Sylva said the project was still at the point of the front end engineering design after which the cost would be determined.

The pipeline would traverse 15 West African countries to Morocco and Spain.

“The Ministry of Petroleum Resources presented three memos to Council.

“The first memo, Council approved for the NNPC Ltd to execute MoU with ECOWAS for the construction of the Nigeria-Morocco Gas Pipeline.

“This gas pipeline is to take gas to 15 West African countries and to Morocco and through Morocco to Spain and Europe,’’ he said.

The minister said the council also approved the construction of a switchgear room and installation of power distribution cables and equipment for the Nigeria oil and gas park in Ogbia, Bayelsa, in the sum of N3.8billion.



He said the park was to support local manufacturing of components for the oil and gas industry.



More so, Mr Sylva said that FEC approved various contracts for the construction of an access road with bridges to the Brass Petroleum Product Deport in Inibomoyekiri in Brass Local Government in the sum of N11billion plus 7.5 per cent VAT.

The News Agency of Nigeria (NAN) reports that Nigeria-Morocco Gas Pipeline was proposed 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) (ONHYM).

The pipeline would connect Nigerian gas to every coastal country in West Africa (Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal and Mauritania), ending at Tangiers, Morocco, and Cádiz, Spain.
 
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