‘Nigeria to contribute 26 per cent of Africa’s oil and gas pipeline additions to 2022’

nigeria pipe 25Nigeria is forecast to add the highest trunk pipeline length in the African oil and gas pipelines industry between 2018 and 2022, contributing a total length of 8,439 km by 2022, which will account for more than 26 per cent of the region’s planned and announced oil and gas pipeline length additions, according to leading data and analytics company GlobalData

The company’s report ‘Oil and Gas Pipelines Industry Outlook in Africa to 2022’ forecasts that around 31,714 km of planned and announced oil and gas pipeline length will be added in Africa by 2022, taking the region’s total oil and gas pipeline length to around 115,226 km by 2022.

Nigeria also has the region’s highest new build capital expenditure (capex) of around US$35.2bn for the 2018–2022 period. Trans Saharan Gas pipeline is the longest planned pipeline in Nigeria, as well as for Africa. It is expected to start its operations in 2021 with a planned length of 4,400 km.

Soorya Tejomoortula, oil and gas analyst at GlobalData, explained, “Nigeria is focused on expanding its gas pipeline network to transport natural gas from its production centres to power generating stations. The planned pipelines will increase gas utilisation and boost electricity generation in the country.”

GlobalData identifies Mozambique as the second highest in terms of oil and gas pipeline length additions as well as spending on planned pipelines in Africa’s oil and gas pipelines industry to 2022. Mozambique has planned investment of around US$10.3bn by 2022 and plans to add a total length of 5,100 km of oil and gas pipelines by 2022. Major planned and announced oil and gas pipelines in the country are the African Renaissance Project pipeline and Gasnosu pipeline. These pipelines have lengths of 2,600 km and 2,100 km respectively.

Nigeria 25 GLobaldata

Tejomoortula added, “Mozambique is also focusing on the construction of natural gas pipelines to transport gas from its northern producing centres to southern parts of the country. Mozambique aims to maximize use of its natural resources for power generation. The country is also planning a massive pipeline to export natural gas from Rovuma block to Gauteng, South Africa.”

South Africa is the third highest among the countries in Africa, in terms of oil and gas pipeline length additions. The country has planned new build capex spending with around US$4.4bn planned investment during the outlook period 2018-2022. South Africa is expected to add around 2,819 km of planned and announced oil and gas pipelines by 2022.

The three longest planned and announced natural gas pipelines in Africa between 2018 and 2022 are Trans Saharan Gas pipeline, African Renaissance Project pipeline, and Gasnosu pipeline, with lengths of 4,400 km, 2,600 km, and 2,100 km respectively.

The report also states that the three longest planned and announced oil pipelines in the region during the forecast period are South Sudan–Djibouti Oil pipeline, East African Crude Oil (EACOP) pipeline, and South Sudan–Kenya pipeline with lengths of 1,600 km, 1,445 km and 1,135 km respectively.

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