Trans-Sahara Pipeline Sees New Life

The Trans-Sahara Gas Pipeline (TSGP) is reportedly still on track Nigeria's state news agency reported, citing a spokesperson at Nigerian National Petroleum Corp. (NNPC). The pipeline project which would transport natural gas from Nigeria to Europe through Algeria, has faltered a bit since plans for it came to light more than a few years ago.

The TSGP project, launched when Nigeria and Algeria signed a MoU, is aimed at sending up to 30 Bcf/d of gas to Europe from Nigeria, via Niger and Algeria, commencing in 2015, although that deadline is not realistic at this point.

"The project is ongoing in spite of the numerous challenges threatening to stall it," the agency quoted NNPC spokeswoman Tuminu Green as saying.

"The MoU between Nigeria and Algeria has been signed; a feasibility study for the project has been concluded and the process of laying pipes from Calabar [southeastern Nigeria] through Kano [in the north of the country] is about to begin."

The project's cost is estimated at $10 billion for the pipeline and $3 billion for the gas-gathering centers. In January it was revealed that the government made a commitment of $400 million in the 2013 budget to finance the project up to the next stage

It was also reported that NNPC was exploring options to raise money from private investors to fund its share of the cost. There have been a number of international oil and gas firms in the past who have expressed interest in participating in the project. Last year Russia's Gazprom said it was holding preliminary talks with Nigeria about participating in the project; however, no progress has been made since then.

Delays in the project can be partially blamed on the stalled Petroleum Industry Bill that has been making the rounds of Nigeria’s legislature for a number of years.

"Like every other oil and gas project in Nigeria that is stalled because of the non passage of the PIB, the Trans Sahara project is also affected," an industry official told Platts.

http://www.petroleumafrica.com

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