A Review of the Nigerian Energy Industry

Nigerian, South Korean consortium to build Cameroon pipeline

Keystone XL oil pipeline10 June 2013, Dow Jones Newswires – An engineering consortium of Nigerian and South Korean firms is to build a 284-kilometre oil pipeline in Cameroon, state-run radio reported Sunday.

A memorandum of understanding was signed Thursday by the chief of Petroleum Products Pipeline S.A. and the country’s energy and water minister, Basile Atangana Kouna, the radio said. Details of the financial costs of the project weren’t disclosed.

The pipeline is to run from the southwestern Atlantic port city of Limbe – where the government’s sole state-run refinery is located – through the cities of Bafoussam and Bamenda in the interior.

Cameroon lacks the necessary infrastructure to distribute fuel to filling stations around the country, which has led to an increase in cross-border smuggling from Nigeria and Gabon.

“This project will enable the government to cut spending on fuel transportation,” said the group’s spokesman, Godbless Eruani Azibapu.

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