Niger has officially entered the global oil market with its first shipment of crude oil, marking a significant milestone following the recent completion of the $5 billion Niger-Benin pipeline. This event positions the landlocked African nation as the latest member of the continent’s oil-exporting countries and comes amid significant political changes within the country.
The shipment was loaded at Benin’s Seme port, with the Front Cascade, a Suezmax tanker capable of holding 1 million barrels, ready to set sail. According to S&P Global Commodities at Sea, the tanker was stationed just outside the Seme terminal, poised for loading at 1330 Greenwich Mean Time (GMT). Subsequent shipping data confirmed that the Front Cascade, which has a deadweight of 156,000 and was built in 2017, departed from the port on Sunday, listing its destination linked to the West African Oil Pipeline Company (WAPCO), a subsidiary of the China National Petroleum Corp that constructed the pipeline.
This first cargo operation on May 17 marks the commencement of the 110,000 barrels per day (bpd) crude pipeline’s operation, which is anticipated to drastically boost Niger’s oil output and establish it as a notable oil exporter. Presently, Niger produces merely 20,000 barrels of crude daily from the Agadem Rift Basin, primarily for domestic use due to the absence of an export route. With the new pipeline operational, production is expected to quickly ramp up to utilize the increased capacity.
The pipeline is initially set to operate at 90,000 barrels per day, with plans to gradually scale up to full capacity. This infrastructure not only promises to transform Niger’s economy but also contributes to diversifying the global oil supply. The increase in oil production capacity through the pipeline mirrors the transformative impact uranium mining had on Niger’s economy in the 1970s.
Jim Burkhard, S&P Global’s vice president of oil markets, energy, and mobility, emphasized the significance of this development, stating, “This is a major milestone in Niger’s economic history and a notable oil market development as well. Niger is set to become the world’s newest oil exporter, and it is adding to world oil supply growth taking place outside of OPEC+.”
