(Business in Cameroon) - On September 17, 2019, Niger launched the construction of a 2,000-km pipeline that should link its oil fields, in Agadem, to Cotonou port, in Benin, credible sources reveal. This infrastructure estimated to cost $5 billion (XAF3,000 billion) should be completed within a 2-year period by China National Petroleum Corporation (CNPC).

CNPC chose to build the Niger-Benin pipeline instead of the less costly 600-km Agadem-Chad-Cameroon pipeline because of a “poor experience” with Chadian authorities, our sources indicate.

These sources explain that the Chinese operator invalidated the Agadem-Chad-Cameroon pipeline project that would allow Niger to export its crude oil via Kribi deepwater port because its partnership with Chad has been plagued with misunderstandings.

For instance, on August 13, 2013, Chad stopped CNPC’s operations in the country for "gross violations of environmental rules." Also, in early 2019, the same government decided to appoint one of President Idriss Déby's children as managing director of Société de raffinage de Djarmaya (SRN) instead of letting CNPC (that owns 60% of the SRN) choose the managing director.

Apart from these troubled relations between CNPC and Chad, the decision to build the Niger-Benin pipeline was also spurred by the Nigerian government’s hesitations. Indeed, On October 30, 2013, in Yaoundé, a bilateral agreement setting the conditions for the transit of Niger’s oil via Cameroon was signed. However, since that date, the project has not been implemented.

Officially, Niger is reluctant on implementing the project because of mounting insecurity at Cameroonian borders and the constant threat posed by Boko Haram in the Lake Chad area.

Cameroon is thus one of the big losers in the choice made by CNPC. Indeed, this decision deprives Cameroon of important transit duties the Agadem-Chad-Cameroon would have generated.

On September 29, 2013, this duty was increased from XAF195 ($0.41) to XAF618 ($1.30) per barrel. Once again, on September 30, 2018, it was increased from $1.30 to $1.32 per barrel.

Brice R. Mbodiam