West Africa: Nigeria, Algeria, Niger Seal $10bn Gas Pipeline Deal

Three African countries yesterday signed an accord to build a $10 billion trans-Saharan gas pipeline linking vast reserves in Nigeria to Europe.

The project would convey gas destined for the European market more than 4,000 kilometres (2,485 miles) from the Niger Delta in Nigeria via Niger and Algeria.
Agency reports said the first delivery of gas is scheduled in 2015.

“A market opportunity of about 15-20 billion cubic metres exists for the TSGP (Trans-Saharan Gas Pipeline) as from the year 2015,” Lukman, also a former chief of the Organisation of Petroleum Exporting Countries (OPEC) said.

No date was announced for the start of construction.

But Lukman said the next step would be to establish the appropriate commercial, fiscal, legal and technical options ahead of the final investment decision. Already the Russian gas monopoly Gazprom has expressed an interest in the venture.

Last week Gazprom signed an agreement with the Nigerian National Petroleum Company (NNPC) establishing a 50-50 joint venture in oil, gas processing and transportation. It plans to invest 2.5 billion dollars in a series of projects in Nigeria.

Gazprom plans to build at a cost of between 400 and 500 million dollars a 360-kilometre gas pipeline running from south to the north. It will be the first trunk pipeline to become part of the Trans Saharan gas pipeline, Gazprom International’s chief Boris Ivanov said last week.

AllAfrica