Algeria prepares for talks on 4,000+ km trans-Saharan gas pipeline with Nigeria & Niger

Head of Algerian state-owned oil firm Sonatrach, Toufik Hakkar, announced on Monday that the technical layout for the construction of trans-Saharan gas pipeline ‘Medgaz’ running through West Africa, supplying northern Nigeria and Niger had completed. The route for the gas pipeline was also decided as the company was now preparing to negotiate talks with Nigeria, Algerian daily El-Jaza’ir reported, citing remarks made by Hakkar with National Radio Channel One. EGPDF pipeline, which links to the international Medgaz pipeline that will transport natural gas from Algeria to Europe was inaugurated by the Algerian Minister of Energy and Mines Mohamed Arkab in May this year. 

The ambitious project of gas pipeline transiting the Sahara Desert was proposed in the 1970s but had stalled due to opposition by environmentalists preserving the Niger River delta and terror threats from the militant groups that warned an attack on pipeline crew, according to Sputnik. If completed, the pipeline will serve as a major gas source to Nigeria and the markets in Europe, via Algeria. Announcing the plans for implementation of the technical aspects of the pipeline projects, Harrar said that the decision to launch such an investment would depend heavily on the price of the gas it would carry, noting that since 2010, the price had fallen from 10 dollars per thermal unit to less than $1 in 2020.

New impetus to Nigeria-Algeria relations 

Algeria’s minister of energy and mines Arkab was quoted as saying by Sputnik that the Algiers will focus their “special attention” on the “rapid” completion of the ambitious project “which will give a new impetus to the relations between our two countries in terms of technical cooperation and capacity strengthening”. Algeria reportedly aims to ramp up its gas capacity from 8.2 billion cubic meters a year (Bcm/y)  to 10.2Bcm/y. Algeria’s Sonatrach became the majority shareholder after it acquired a 19.10 per cent stake in the project from Spanish engineering company Cepsa, according to Algerian press reports. 

"This project will have important social and economic results in the transit countries, within the framework of environmental protection and sustainable development,” Arkab said, as translated by Sputnik. 

Abuja although has deterred from the display of enthusiasm about the construction of the gas pipeline, saying that it would be virtually impossible to guarantee the construction of the gas pipeline as it passes through Daesh and Al-Qaeda stronghold territories not under the control of the Nigerian government that has had little success in countering threats from Boko Haram. Additionally, Abuja argued that the undersea gas line would have to run off the African coast to Morocco. While Nigerian President Muhammadu Buhari was quoted saying by Sputnik that he had conveyed to the Moroccan King Mohammed VI about the project launch for “as soon as possible,” the project could end in limbo. Chief operating officer,  Yusuf Usman, of the Nigerian National Petroleum Corporation (NNPC), told Nigerian Newsdirect that the firm was ready to make investments to kick start the constructions. 

Image: Unsplash/@selimarda (Representative Image)