In a surprising move, the government of Niger has announced that it will stop exporting liquefied petroleum gas (LPG) to Nigeria, effective from October 1, 2023. This decision has sparked mixed reactions from both countries, as well as from regional and international observers.
LPG, also known as cooking gas, is a flammable mixture of hydrocarbon gases used as fuel in cooking, heating, and other applications. Nigeria is the largest consumer of LPG in Africa, with an estimated demand of 1.8 million metric tons per year. However, due to the lack of adequate infrastructure and domestic production, Nigeria relies heavily on imports from neighboring countries, especially Niger, which has abundant natural gas reserves.
According to the Nigerien Minister of Energy and Petroleum, Abdoulaye Issa, the ban on LPG exports to Nigeria is part of a strategic plan to develop the domestic gas sector and promote industrialization in Niger. He said that Niger has been exporting LPG to Nigeria at a subsidized price, which has been detrimental to the Nigerien economy and the environment. He also said that Niger intends to use its own gas resources to generate electricity, produce fertilizers, and support other industries.
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The Nigerian Minister of State for Petroleum Resources expressed disappointment and concern over the Nigerien decision, saying that it will have negative impacts on the Nigerian economy and the welfare of millions of Nigerians who depend on LPG for their daily needs. He said that Nigeria has been a reliable partner and a major investor in the Nigerien gas sector, and that the ban will undermine the existing cooperation and integration between the two countries. He urged the Nigerien government to reconsider its decision and engage in dialogue with Nigeria to find a mutually beneficial solution.
The ban on LPG exports to Nigeria has also raised questions about the future of the Trans-Saharan Gas Pipeline (TSGP) project, which aims to transport natural gas from Nigeria to Europe via Niger and Algeria. The project, which has been in the works for over a decade, is expected to boost the economic development and energy security of the participating countries, as well as reduce greenhouse gas emissions. However, the project has faced several challenges, such as funding, security, and regulatory issues. The Nigerien decision to ban LPG exports to Nigeria could further complicate the prospects of the TSGP project.
Some analysts have suggested that the ban on LPG exports to Nigeria is not only motivated by economic reasons, but also by political and diplomatic factors. They have pointed out that the relations between Niger and Nigeria have been strained in recent years, due to various issues such as border disputes, migration, terrorism, and trade barriers. They have also noted that Niger has been strengthening its ties with other regional and global powers, such as France, China, and Turkey, which could influence its energy policy and interests.
The ban on LPG exports to Nigeria is likely to have significant implications for both countries, as well as for the regional and international energy landscape. It remains to be seen how the two governments will handle this situation and whether they will be able to reach a compromise that will satisfy their respective interests and aspirations.