FG reserves 14 trillion cubic feet of Gas for $13 billion Trans-Sahara Gas Pipeline - Niger Republic joins as co-sponsors

Ayodele Adesanmi Abuja - 02.03.2008

The Trans-Shahara Gas Pipeline, a business project of three countries: Nigeria, Algeria and Niger, would deliver about 30 billion csf of gas to European markets from year 2015 onwards when it would have properly taken off. This was made known at the end of the 3rd Steering Committee meeting in Abuja at the weekend. The gas available for the project traverse 4,218 km from the Niger Delta to Algeria .

The TSGP championed by the Nigerian National Petroleum Corporation (NNPC) and its Algeria counterpart, Sonatrach has 1037km of its length on Nigerian soil, 841 km on Niger soil and then 2,310 km on Algerian soil. When completed, it would be the biggest gas supply source to Europe through the Mediterranean .

At the meeting, Nigeria Minister of State for Energy in charge of Gas, Mr. Emmanuel Odusina, assured all partners that it has kept about 14 trillion standard cubic feet of gas (tscf) worth $13 billion for the project which when completed on schedule would deliver about 30 billion csf of gas to European markets from 2015 onwards.

The Trans-Sahara Gas Project, which initially had only Nigeria and Algeria as sponsors, also announced the inclusion of the Republic of Niger as a new partner, but the equity participation is being worked out.

Speaking to Energy Correspondents at the end of the meeting, Nigeria Minister of State for Energy in charge of Gas, Mr. Emmanule Odusina, said that after detail study of the Nigeria gas reserves, cluster 5 and 6 of its reserves which hold between 13 – 14 tscf of gas, has been reserved for the TSGP.

This represent about 7% of Nigeria ’s gas reserve estimated at 184.2 trillion cubic feet, making the country the largest reserves in Africa and the 7th largest in the world. Odusina said that, at the meeting, issue of gas supply was deliberated upon and all the co-sponsors expressed satisfaction over the issue.

The Minister of Mines and Energy of Algeria, Dr. Chakib Khalil, on his part expressed optimism on the economic and socio-political viability of the project in the overall development of the three countries in line with the New Partnership for African Development (NEPAD), saying that the World Bank and other international development partners were excited about the project.

He said that the three countries are only going to contribute $2.5 billion for the entire project, while the balance would be provided for by the private sector and international development partners.

The steady rise of gas prices at the international market he said, is an assurance that, by the end of the project, the business would be very profitable.

The Algerian Minister, however explained that the three countries are looking forward to signing a Supply Purchase Contract with some European countries while the project is still on going.

His counterpart from the Republic of Niger , Mohammed Abdullahi, enthused about his country saying that it would rely heavily on the experience of Nigeria and Algeria in its investment into the project.