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Trans-Saharan Gas Pipeline project back in action: Algeria, Nigeria, and Niger have signed agreements to set a compensation scheme framework and update feasibility studies of a proposed USD 13 bn Trans-Saharan Gas Pipeline project, the Algerian Press Agency reports. The project aims to transport bns of cbm of natural gas over 4k km from Nigeria to Niger, Algeria, and eventually European and global market
How will the gas reach Europe? The gas will either be exported to the EU via the Trans-Mediterranean pipeline — which connects Algeria to Italy via Tunisia — or by converting the gas to LNG and shipping it on specialized tankers, Al Arabiya reports.
Algeria has several access points to Europe: Algeria hosted part of a pipeline that supplied gas from Algeria to Spain via Morocco until late 2021, when it suspended flows after cutting off diplomatic ties with Morocco. It was reported at the time that Algeria would compensate for lost supplies to Spain via the Medgaz undersea pipeline running directly from Algeria to Spain and with extra shipping capacity.
The story…goes way back: The agreement for the pipeline was originally signed back in 2009 with the aim of transporting up to 300 mn cbm per year to European markets, Reuters reported. The investment for the project — which was set to launch nearly 10 years ago — saw USD 10 bn for equipment and USD 3 bn for gas gathering centers. The three sides signed an MoU for the project in 2022.
Why the revival? The project’s revival has been linked to Europe diversifying energy sources and shifting inflows away from Russia. The EU is being overtaken by India and China as Moscow’s top clients, which follows the US’s crackdown on Russian oil exports, with sanctions targeting Russian oil producers such as Gazprom Neft and Surgutneftegas.
All eyes on Africa: The project could solidify Africa’s position in the global energy market as well as reduce West Africa’s reliance on imported gas, lower supply chain disruptions, and boost local production in the region, Energy Capital reports. Algeria and Nigeria — alongside Libya, Egypt, and Angola — will likely be key drivers of liquid supply over the next 10 years, according to a recent report (pdf).
