Trans-Sahara Pipeline Deal Sealed

August 2009 Vol. 236 No. 8

Nigeria, Algeria and Niger have signed an agreement to build the multibillion-dollar Trans-Sahara pipeline which could carry up to 30 Bcm of gas per annum to Europe.

“We have the expertise and I don’t think there is a problem with finance in this project. I don’t think there is a problem with a market. The market is there,” said Algerian Energy Minister Chakib Khelil.

The project, estimated at $10 billion for the pipeline and $3 billion for gathering centers, would send West African gas via a 4,128 km pipeline from Nigeria via Niger and Algeria. The European Union said the Trans-Sahara project could help diversify its energy sources.

Total, Shell and Gazprom have expressed interest in helping Nigeria National Petroleum Corporation Sonatrach in the project. Gazprom and NNPC agreed to invest at least $2.5 billion to explore and develop Africa’s biggest oil and gas sector, including building the first part of the Trans-Sahara pipeline.

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