Niger Poised for Historic Oil Export as Completion of Benin Pipeline Signals Transformation

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Niger, a landlocked nation in West Africa, is on the brink of a historic milestone as the completion of the groundbreaking Niger-Benin pipeline promises to catapult the country into the ranks of major oil exporters.

Niger

With a capacity of 110,000 barrels per day (b/d), the Niger-Benin pipeline represents a significant leap forward for Niger’s oil industry, which currently produces 20,000 b/d from its Agadem Rift Basin. The completion of this pipeline, constructed by the China National Petroleum Corporation, is expected to increase Niger’s crude production fivefold and provide a crucial export route for its oil reserves.

Initially scheduled for export in January, the inaugural shipment of crude oil is now anticipated to take place as early as April, according to sources familiar with the project. The relaxation of sanctions imposed on Niger by the Economic Community of West African States (ECOWAS) in February played a pivotal role in expediting the completion of the pipeline, which had faced delays due to border closures and logistical challenges.

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Benin, a key partner in the pipeline project and a member of the ECOWAS regional bloc, had previously imposed restrictions on the movement of equipment across its borders, causing delays in construction. However, the recent easing of sanctions by ECOWAS, influenced by Nigeria, paved the way for the swift completion of the pipeline and the commencement of crude oil flow.

The Niger-Benin pipeline, spanning 2,000 kilometers, connects Niger’s oil fields in Koulele to the Beninese port of Seme. It is expected to operate initially at 90,000 b/d before ramping up to its full capacity of 110,000 b/d. Storage facilities in Benin are currently being prepared to accommodate the influx of crude oil, with the first shipment slated for late April or early May.

For Niger, the completion of the pipeline represents a significant economic opportunity and a transformative moment for its oil industry. With the prospect of increased revenue and greater international trade, the country is poised to emerge as a key player in the global energy market, signaling a new chapter in its economic development and regional influence.

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