Niger Republic commissions oil pipeline to Benin

Niger Republic has commissioned a 1,980km cross-border crude oil pipeline that will connect the Agadem Rift Basin (ARB) region in Niger to Port Seme Terminal in the Republic of Benin allowing the country to directly export its crude oil (through Benin) to the world.

The commissioning ceremony was held at the Agadem oil site, more than 1,700 kilometres (around 1,500 miles) from the capital Niamey, in the desert region of Diffa.

Niger’s Prime Minister Ali Zeine stated that the resources from exploitation would be used to “ensure the sovereignty and development of our country”.

Energy ministers from Mali and Burkina Faso, who have shown support to Niger’s new leaders and have both undergone military coups in the past two years — were present at the ceremony.

The pipeline project was supposed to be completed in 2022 but was delayed by the Covid-19 pandemic, the project owner told AFP.

The border between Niger and Benin is closed following heavy sanctions imposed by the Economic Community of West African States after the July 26 military takeover.

China National Petroleum Corporation (CNPC) is the Niger-Benin crude pipeline developer and operator. The project represents the company’s biggest cross-border crude oil pipeline investment to date. It has a capacity of 90,000 barrels per day (bpd).

Also Read: Algeria, Nigeria, Niger sign MoU for Trans Saharan gas pipeline

According to Niger’s government, $6 billion has been invested in the project,  including $4 billion to develop the oil fields and $2.3 billion for the construction of the pipeline.

It says this investment has allowed the country to increase oil production to 110,000 barrels per day, with an official target to increase to 200,000 barrels per day by 2026.

Niger, where the military seized power on July 26 by overthrowing elected president Mohamed Bazoum, had seen mass protests calling for troops of former colonial ruler France to leave. As well as the ECOWAS sanctions, many Western countries have cut off development aid to Niger.

The World Bank has warned that GDP growth is set to fall to 2.3 percent this year if international sanctions continue.

On a related note, Nigeria, Niger and Algeria have recently revived plans to build a “Trans-Saharan gas pipeline” (4,000km long, est. $13B cost) that will serve the European market. The 3 countries signed an MOU on this in July 2022. The gas pipeline will run from Warri in Nigeria to Hassi R’Mel, where it’ll join an existing pipeline network that goes into Europe.