The Ukraine war, which has escalated into an energy war, is not expected to contribute to the strategic value of the Nigeria-Morocco gas line project. Why is that? Europe, with 40 percent of its gas needs imported from Russia, must now immediately look for alternative gas sources after the United States and Europe maneuvered to impose sanctions on Russia after the military invasion of Ukraine.
One alternative source that is in high demand today is the Nigeria-Morocco gas line project. The Nigeria-Morocco gas line project, as reported by the Al Jazeera website, Tuesday (8/3), was launched in December 2016, when the King of Morocco, Muhammad VI, visited Abuja and met the Nigerian President Muhammadu Buhari.
At that time, Muhammad VI and Buhari agreed to conduct a study on the construction project of the Nigeria-Morocco gas line to Europe along 5,560 kilometers. The study began in May 2017. Furthermore, in June 2018, Nigeria and Morocco announced the construction of a Nigeria-Morocco gas line project to Europe which will pass through 13 countries in West Africa and North Africa. The project value reached 30 billion US dollars.
In June 2021, the construction of the pipeline from Nigeria to Morocco began. Its construction will last 25 years. Saudi Arabia, Qatar, and the United Arab Emirates support the project and will principally invest in the project. The Jeddah-based Islamic Development Bank (IDB) on January 6 signed an agreement with Morocco and Nigeria. IDB will spend 15.45 billion US dollars for the construction of the gas pipeline.
The Nigeria-Morocco gas line megaproject will provide great benefits to the West African Region, North Africa, and Europe in the form of jobs, electricity supply in many areas of West Africa that are not yet electrified, and can help with fertilizer production. The project is considered to be strengthening the economic cooperation of the West African Economic Community (ECOWAS), which consists of 15 West African countries. The pipeline is said to pass through most of the ECOWAS member countries.
Two Arab countries in North Africa, Morocco, and Mauritania have applied to join ECOWAS. Europe is also now paying attention to the project. Its existence is seen as part of the diversification of gas sources. So far, Europe is very dependent on Russia.
Strategic
The outbreak of the Russo-Ukrainian war since February 24, followed by Western bloc sanctions, namely stopping European imports of Russian gas, has made the Nigeria-Morocco gas route project more strategic for Europe. Moreover, Germany has frozen the Nord Stream 2 project, namely the gas pipeline project from Russia to Europe via Germany, immediately after Russia attacked Ukraine.
So far, the Nord Stream 2 project is the toughest rival of the Nigeria-Morocco gas pipeline project because the Nord Stream 2 project line is much shorter (about 1,230 kilometers) than the Nigeria-Morocco gas pipeline (5,560 kilometers).
However, Nord Stream 2's investment value is much lower so gas prices from the Nigeria-Moroccan pipeline are more expensive. However, Germany's action to freeze the Nord Stream 2 project left the Nigeria-Morocco gas line project without any more serious competitors.
The only rival for the Nigeria-Morocco gas line will be the East Med gas route, which is a gas pipeline project in the Eastern Mediterranean Sea through Greek territory for gas exports to Europe. According to the US agency for geological studies, oil and gas reserves were found in an area of 83,000 square kilometers in the eastern Mediterranean Sea.
It is estimated that the mine has gas reserves of up to 287 trillion cubic meters and liquid oil of 1.7 billion barrels. Almost certain, path Nigeria-Moroccan gas, the East Med gas line plus gas from Qatar, can become the new backbone of gas supply to Europe, replacing Russia.
It is impossible to cover Europe's enormous gas demand from a single source. There must be a collaboration between several large gas sources to be able to meet the European market. Qatar's Minister of Energy Affairs, Saad Sherida-Al-Kaabi, at the summit of world gas exporters in Doha on February 22, emphasized that Qatar is willing to increase gas supplies to Europe, but on the other hand, Qatar is unable to meet Europe's gas needs alone.
This is because Qatar has long-term contracts for gas exports with many other countries. Al-Kaabi's statement shows Qatar's need to collaborate with gas sources in other regions, such as the East Med and the Nigeria-Morocco axis. This cooperation is necessary to fulfill the European gas market.
Kompas, Page-4, Friday, March 11, 2022
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