Nigeria, Algeria Resume Talks on Trans-Saharan Gas Pipeline Project

Federal Republic of Nigeria Petroleum and Energy Minister Diezani Alison-Madueke. Nigeria and Algeria are working on a gas pipeline project that will extend through North and West Africa. a photo by Pan-African News Wire File Photos on Flickr.

Nigeria, Algeria resume talks on Trans-Saharan gas pipeline project

Wednesday, 09 March 2011 00:00
By Roseline Okere
Nigeria Guardian

THE Algerian government and its Nigerian counterpart have resumed talks on their plans to construct natural gas pipeline from Nigeria to Algeria.

The Trans-Saharan gas pipeline (also known as NIGAL pipeline and Trans-African gas pipeline) is a planned natural gas pipeline from Nigeria to Algeria. It is seen as an opportunity to diversify the European Union‘s gas supplies.

The pipeline process across the Sahara desert, which will start in Nigeria and pass through Niger and Algeria to Europe, was expected to deliver first gas around 2015.

Nigeria’s gas reserves, estimated at 187 trillion cubic feet, are the seventh largest in the world

Algeria’s Energy Minister, Yousfi told Dow Jones’ Newswires recently that he had discussed the project, which will transport 20 billion cubic meters per year, with Nigerian officials in recent weeks.

He said the project “is still alive. We are in talks with our partners and I hope we will speed up the process.”

The 4,128-kilometer route, with reported costs varying from $13 billion (N1.9 trillion) to $20 billion (N3 trillion), would send Nigerian gas to Europe through Niger and Algeria.

Europe has bet on the project, which is dwarfing Chevron Corp.’s (CVX) $4 billion Chad-Cameroon oil pipeline, as a diversification source away from Russian gas.

In 2009, a memorandum was signed between Niger, Nigeria and Algeria to move forward with the plan.

But little news has surfaced about the project since a military coup in Niger in February 2010, and the subsequent departure of two of the pipeline’s proponents, Rilwanu Lukman, the former Energy minister of Nigeria, and Chakib Khelil, former Energy minister of Algeria.

The pipeline was opposed by the militant group, Movement for the Emancipation of the Niger Delta. A spokesman for the group had warned that until issues regarding the exploitation of the Niger Delta and its people have been resolved, “any money put into the project will go down the drain.”

The pipeline will start in the Warri region and run north through Niger to Hassi R’Mel in Algeria.

In Hassi R’Mel, the pipeline will connect to the existing Trans-Mediterranean, Maghreb–Europe, Medgaz and Galsi pipelines. This will supply Europe from the gas transmission hubs at El Kala and Beni Saf on Algeria’s Mediterranean coast. The length of the pipeline would be 4,128 kilometres (2,565 mi): 1,037 kilometres (644 mi) in Nigeria, 841 kilometres (523 mi) in Niger, and 2,310 kilometres (1,440 mi) in Algeria.

The annual capacity of the pipeline would be up to 30 billion cubic meters of natural gas. It would have a diameter of 48 to 56 inches (1,220 to 1,420 mm). The pipeline is expected to be operational by 2015. The investment for the pipeline will be around $10 billion and for gas gathering centres around $3 billion.

The pipeline is to be built and operated by the partnership between the NNPC and Sonatrach. The company would include also the Republic of Niger. Initially, NNPC and Sonatrach would hold a total 90 per cent of shares, while Niger would hold 10 per cent.

Russian Gas Company Gazprom has negotiated with Nigeria about its possible participation in the project. Also Indian company GAIL, France’s Total S.A., Italy’s Eni SpA and Royal Dutch Shell have expressed interest in participating in the project.