Niger Chad Oil Pipeline

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Niger Chad Oil Pipeline is a proposed oil pipeline in Central Africa. There have been no development updates since 2017 and the project is presumed to be shelved.

Location

The pipeline would run from the Agadem oil field in Niger to Doba Basin, Chad, where it would connect to the existing Chad-Cameroon Oil Pipeline, for export through the Port of Kribi in Cameroon.

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Project Details

• Operator: China National Petroleum Corporation (CNPC), Government of Niger
• Proposed capacity: 60,000 barrels per day
• Length: 600 kilometers
• Oil source: Agadem bloc, Niger
• Status: Cancelled
• Start Year: 2019

Background

In 2012 Niger signed an agreement with neighbouring Chad to construct a 600 km (373 miles) pipeline linking it to the Chad-Cameroon pipeline, which will enable Niger to export crude. The MoU followed the inauguration of Niger's Soraz refinery, a US$5 billion joint venture with China National Petroleum Corporation (CNPC) near Zinder. The 20,000 barrel-per-day capacity refinery, 60 percent-owned by CNPC and 40 percent by Niger, is fed entirely by oil from the Agadem oilfield a further 700 km east. The two ministers gave no indication of when the construction of the pipeline will begin, nor its cost.

In 2016 the IMF reported that construction may begin in 2017, and be completed by 2019.

As of February 2017, the pipeline construction has been put on hold by CNPC and the government of Niger due to the rapid fall in commodity prices, making the project unprofitable under current conditions. As of now, the pipeline's completion has been delayed until 2020 while alternatives are being considered.

In September 2019, a Cameroonian business site reported that the Nigerien government had decided in favor of the Niger Benin Oil Pipeline, instead of the Niger–Chad pipeline, "because of a 'poor experience' with Chadian authorities." The official explanation given for the project's cancellation was concerns about attacks by Boko Haram in the Lake Chad area.