Coup-hit Niger was betting on a China-backed oil pipeline as a lifeline. Then the troubles began

ABUJA, Nigeria (AP) — A China-backed pipeline that would make Niger an oil-exporting country is being threatened by an internal security crisis and a diplomatic dispute with neighoring Benin, both as a result of last year’s coup that toppled the West African nation’s democratic government.

The 1,930-kilometer (1,200-mile) pipeline runs from Niger’s Chinese-built Agadem oil field to the port of Cotonou in Benin. It was designed to help the oil-rich but landlocked Niger achieve an almost fivefold increase in oil production through a $400 million deal signed in April with China’s state-run national petroleum company.

But it has been stalled by several challenges, including the diplomatic disagreement with Benin that led to the pipeline’s closure last week. There also has been an attack this week by the local Patriotic Liberation Front rebel group, which claimed to have disabled a part of the pipeline and is threatening more attacks if the $400 million deal with China isn’t canceled.

The group, led by Salah Mahmoud, a former rebel leader, took up arms after Niger’s junta came to power, posing further security threats to the country, which is already struggling with a deadly security crisis.

Analysts say the crises could further hurt Niger, one of the world’s poorest countries which funds most of its budget with now-withheld external support in the aftermath of the coup.

Niger currently has a local refining capacity of only 20,000 barrels per day (bpd) for local demands while the pipeline is to export up to 90,000 barrels daily — a feat officials and analysts have said would help the country shore up its revenue and emerge from the coup sanctions that had isolated it from regional neighbors and hurt its economy and people.

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