Africa targets Europe for gas supply

Africa is set to embark on a groundbreaking gas pipeline project that could reshape the energy landscape of the region. Nigeria, Morocco, Senegal, Tanzania, and the ECOWAS Commission have inked a deal for a 7,000-kilometer pipeline that will supply gas to Europe, making it the world's longest offshore gas pipeline. The Chairman of Shoreline Group, Kola Karim, joined CNBC Africa to delve deeper into the intricacies of this transformative project. The ambitious pipeline project will connect gas reserves from Nigeria's Brass Island to Morocco's Dakla, spanning over 5,300 kilometers. This monumental undertaking is expected to not only bolster the supply of gas to Europe but also revolutionize the West African energy sector. The project holds the potential to create a ripple effect of economic opportunities across the region, with job creation and energy stability at the forefront. Karim emphasized the significance of leveraging Nigeria's abundant gas reserves to drive this project forward. He highlighted how this endeavor could not only meet Europe's energy needs but also address the energy deficiencies faced by several West African nations. The project aligns seamlessly with the vision of the African Continental Free Trade Agreement, further solidifying Africa's position as a key player in the global energy market. One of the key challenges that often plague such agreements is the element of cautious optimism. Karim acknowledged the past instances where agreements have faltered but expressed confidence in the commitment shown by the parties involved in this venture. Nigeria, as a driving force behind the project, is poised to reap substantial benefits from the utilization of its gas reserves, positioning itself as a pivotal player in the region's energy landscape. The issue of security surrounding the pipeline infrastructure was also brought to the fore. Given Nigeria's history of security challenges in the oil and gas sector, Karim stressed the importance of integrating robust security measures from the onset of the project. Safeguarding the pipeline from potential threats will be crucial to ensuring its long-term success and viability. Furthermore, Karim shed light on Nigeria's gas commercialization efforts and the potential impact on reducing carbon emissions. With over a million tons of gas flaring annually, capturing and commercializing this gas could translate into significant revenue for the government. The push towards gas commercialization, coupled with the imminent operationalization of the Port Harcourt refinery, signifies a pivotal moment for Nigeria's energy sector. The timeline set for the Port Harcourt refinery to commence operations by December with a capacity of 60,000 barrels per day presents a glimmer of hope for Nigeria's energy independence. The prospect of reducing foreign exchange expenditure on imported petroleum products through local refining stands as a testament to Nigeria's commitment to bolstering its energy security. In conclusion, Africa's venture into the gas pipeline project marks a milestone in the continent's energy journey. With transformative projects like these, Africa is poised to not only meet its energy demands but also emerge as a key player in the global energy market. The collaboration between Nigeria, Morocco, and other African nations underscores the continent's potential to lead the way in sustainable energy supply.