Trade Arabia reported that 3 African countries have signed an accord to build a USD 10 billion Trans Saharan gas pipeline linking vast reserves in Nigeria to Europe. The project will convey gas destined for the European market more than 4,000 kilometers from the Niger Delta in Nigeria, via Niger and Algeria.

Petroleum and Energy Ministers Mr Rilwan Lukman of Nigeria, Mr Chakib Khalib of Algeria and Mr Mohammed Abdullahi of Niger signed the agreement in Abuja. The first delivery of gas is scheduled in 2015.

Mr Mohammed Barkindo head of Nigeria's state oil company said that the agreement gives this project the official stamp of approval from the 3 governments, directing the national oil companies of these 3 countries to begin in earnest the definitional phase of this project.'

Mr Lukman said that “A market opportunity of about 15 billion cubic meters to 20 billion cubic meters exists for the TSGP as from the year 2015. Now that this agreement is in place we will be talking with prospective partners who might be interested in going to bed with us on this project. The next step will be to establish the appropriate commercial, fiscal, legal and technical options ahead of the final investment decision.”

Already the Russian gas monopoly Gazprom has expressed an interest in the venture. Last week Gazprom signed an agreement with the Nigerian National Petroleum Company establishing a 50-50 JV in oil, gas processing and transportation. It plans to invest USD 2.5 billion in a series of projects in Nigeria.

Mr Boris Ivanov CEO of Gazprom International said last week that Gazprom plans to build at a cost of between USD 400 million to USD 500 million a 360 kilometers gas pipeline running from south to the north. It will be the first trunk pipeline to become part of the Trans Saharan gas pipeline.

(Sourced from Trade Arabia)