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Rabat – Nigeria’s Energy Minister, Tembri Salva, has confirmed that the Nigeria gas pipeline is set to pass through Morocco to reach Europe.
Salva said in an exclusive interview with CNBC Arabia that his country is currently focusing on gas production, noting that during the oil exploration process, 256 billion cubic meters of gas were uncovered.
“Gas will be distributed to other African countries through Algeria, while the Moroccan pipeline will supply gas to Europe,” said the Nigerian minister.
Speaking on the sidelines of the Gastech Conference that is being held in Dubai, Salva confirmed to CNBC Arabia that his government is in the process of constructing a pipeline to transport gas to Algeria, from where it will eventually be distributed to other African countries.
Nigeria’s interest in gas stems from the desire to complete its production line, especially since fossil fuels will soon be phased out, in order to move on to renewable energy resources.
When it comes to the oil sector, Salva confirmed that efforts are being made to increase production from 2.7 million barrels to 3 million barrels of oil.
The minister affirmed that his government has been “planning to build the Nigerian gas pipeline for a while and we faced some difficulties.” He added, however, that the project is being implemented and will aim to “bring gas from the south and link it to Algeria, which will transport it to a number of African countries through cooperation agreements.”
Europe is currently in the midst of an unprecedented natural gas shortage. Financial data from the World Bank indicate the current price of natural gas in Europe at $15.49 (MAD 140) per Metric Million British Thermal Units.
The current price signifies a 441.3% increase compared to last year, causing concerns about possible shortages in the upcoming winter months.
However, the tensions between Algeria and Morocco could threaten the pipeline connecting Spain, Morocco, and Algeria.
The current contract linking natural gas exports between the three countries is set to expire on October 31.
The Spanish government appears to have engaged in a charm offensive to salvage the Europe Maghreb pipeline, but it remains to be seen whether this can convince Algeria to reconsider its plans to either withdraw or remove Morocco from the Europe Maghreb gas deal.
