The federal government has reached an agreement with Algeria and Niger to advance the Trans-Saharan Gas Pipeline (TSGP) initiative, which is designed to enhance gas exports to Europe. Representatives from the three nations formalized these agreements during a meeting held in Algiers, the capital city of Algeria.
The agreements address critical components of the project, including a revised feasibility study, a compensation framework, and a non-disclosure agreement (NDA) among the participating firms.
The Trans-Saharan Gas Pipeline, will extend 2,565 miles through the Sahara Desert, linking Nigeria’s Warri hydrocarbon fields with Algeria’s Hassi R’Mel hub located on the Mediterranean coast. The Algerian portion of the pipeline will measure 1,435 miles, accounting for more than half of the entire pipeline’s length.
Upon its completion, the initiative is projected to facilitate the transportation of up to one trillion cubic feet of natural gas each year.
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Initially proposed in the 1970s, the TSGP experienced phases of advancement in 2002, 2005, 2006, and 2009, but ultimately faced delays.
However in 2022, energy ministers from Nigeria, Algeria, and Niger reinitiated talks to advance the project.
The total estimated cost for its completion is approximately $13 billion, which includes $10 billion allocated for the construction of the pipeline and associated equipment, and $3 billion designated for gas-gathering facilities.
