Nigeria-Algeria Gas Pipeline Project (Trans-Sahara Gas Pipeline)

Champion : H.E. President, Muhammadu Buhari of Nigeria

Description :  A 4 401 km natural gas pipeline from Nigeria to Algeria via Niger, and from Algeria to Spain

Estimated total cost : USD10 billion (48” line) and USD13.7 billion (56” line) (2006)

RECs : ECOWAS and AMU

Countries : Nigeria, Niger and Algeria

Background: The proposed gas pipeline will stretch 1 037 km from Nigeria to the Niger border, 841 km from Niger to Algeria, 2 303 km across Algeria and 220 km from Algeria to Spain. It will have an estimated annual capacity of 30billion cubic litres of natural gas, and is expected to be operational by 2018. The project will start in the Warri region in Nigeria and run north through Niger to Hassi R’Mel in Algeria. There it will connect with the existing Trans-Mediterranean, Maghreb-Europe, Medgaz and Galsi pipelines. The pipeline will be built through a partnership between the Nigerian National Petroleum Corporation (NNPC) and Algeria’s Sonatrach, together holding 90% of the shares, and the Niger National Oil Company holding 10%. The pipeline will ensure closer co-operation and integration between neighbouring countries, and will ultimately allow for the diversification and marketing of Nigeria’s natural gas export route.

Current Status: The Government of Nigeria committed USD400 million for the commencement of the project. An additional USD450 million was raised through Euro-bonds in 2014. The feed of a 48” pipeline from Calabar to Kano has been completed. Given the recent development in the global gas market, the Government of Nigeria engaged a consultant to revalidate the 2006 Feasibility Study of this project. The revalidated study report was submitted in March 2014 and reconfirmed the viability and bankability of the project. The bid documents and the execution of contracts for Early Gas are being processed.  

Contacts:

NEPAD Agency

Dr John Tambi

Senior Advisor – Transport Infrastructure and PICI Coordinator

johnt@nepad.org

Office: +27 11 256 3678 Mobile: +27 83 257 1828

Country Focal Point Nigeria

Mr Aminu Diko

Director-General in thePresidency, Infrastructure Concession Regulatory Commission (ICRC)

a.diko@icrc.gov.ng

+234 946 04900 (ext. 101)

 

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