Niger's Diesel Supply Agreement

• Regional Cooperation

Niger is set to supply Chad, Mali, Burkina Faso, and potentially Togo with diesel to help meet their energy needs. The energy ministers of these countries met in Niamey and agreed to a protocol for Niger to supply diesel to Chad, Burkina Faso, and Mali. Discussions are also underway to include Togo in this agreement. This move shows a commitment to enhance cooperation among these countries, especially in the energy sector.

• First-of-its-Kind Agreement

This supply agreement marks the first time Niger has made such a deal with these four countries. Since 2011, Niger has been processing around 20,000 barrels of diesel and gasoline per day in Zinder. Additionally, Niger recently launched a giant oil pipeline to export its crude oil to Benin, with plans to increase production to 110,000 barrels per day.

• Electricity Initiatives

The ministers also adopted a roadmap for the "Desert to Power" initiative by the African Development Bank. This initiative aims to provide energy to 250 million people in the coastal countries. The goal is to make the Sahel region the largest solar energy producer globally, with a capacity of 10,000 megawatts. Countries benefiting from this initiative include Burkina Faso, Ethiopia, Eritrea, Djibouti, Mali, Mauritania, Niger, Nigeria, Senegal, Sudan, and Chad.

Niger's Economy

• Oil Reserves

Niger has significant oil reserves, with the Tentoma and Agadem fields holding at least one billion barrels of oil. Most of the oil extracted is processed at the Suraz refinery, with a current production capacity of 20,000 barrels per day. The Agadem region supplies the Soraz refinery with about 15,000 barrels of oil daily.

• Gas Reserves

Niger also has substantial gas reserves, with estimated extractable reserves of 24 billion cubic meters out of a total of 34 billion cubic meters. The country faces challenges due to its status as one of the poorest nations globally, with limited government services and exposure to climate shocks.

• Economic Data

According to World Bank data, Niger's GDP in 2022 was approximately $15.34 billion, ranking 133rd globally out of 196 countries. 

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Agencies