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How does the (Algerian-Nigerian) gas pipeline project help Europe solve the energy crisis?

March 6, 2024

The Minister of Energy and Mines in Algeria, Mohamed Arkab, stated – during his discussions with his Nigerian counterpart – that the Trans-Saharan gas pipeline project has returned to work again, especially after the project was halted due to security unrest in Niger, and the project was put forward again during the seventh session of the Gas Exporting Countries Forum, Which Algeria hosted; Hope has been renewed between the two countries once again, in addition to Europe, which hopes to obtain important supplies in order to meet demand and achieve energy security on the African continent.

Project importance:

The Algerian-Nigerian gas pipeline is considered one of the important and strategic projects in Africa, with a length of about 4,000 and about 128 kilometers. About 2,200 kilometers have been completed, and the final cost of the project exceeds more than 13 billion dollars.

The Algerian Minister of Energy said on Saturday, March 2, 2024, during a press conference held on the sidelines of the Gas Exporting Countries Forum: “All parties agree to complete the project, and the pipeline extends over a distance of about 4,000 kilometers from Abuja to the coast of Algeria, and the work has been completed.” By pipeline until the Kamo region, there are only 100 kilometers left to reach the Niger border.”

As for Algeria, the pipeline has been completed up to the Ahnat area, leaving only 700 meters to the border with Niger. About 100 kilometers of the project remain in Nigeria and about 700 kilometers on the Algerian side. As for Niger, there are about 1,000 kilometers representing the Niger strip, and Algeria has a network of pipes affiliated with the complex. Sonatrach exceeds 2,000 kilometers, which reflects the end of the opening of the gas pipeline between Algeria and Niger.

Representatives of the two countries agreed to complete the project on February 18, 2024, in order for the pipeline to pass so that gas can flow to Europe. The pipeline extends from the city of Warri in southern Nigeria through Niger to the gas distribution center in the Hassi R’Mel region in Algeria.

Algeria signed a memorandum of understanding in July 2022 with Nigeria and Niger, the aim of which is to conduct a feasibility study and deepen studies to complete the Algerian-Nigerian gas pipeline project. The pipeline starts from Abuja, passes through Niamey, and then heads to Algeria with the aim of paving the way for its export to Europe.

The aim of the project:

The project aims to transport about 30 billion cubic meters of Nigerian gas every year to Europe through Algeria, and the project is of great importance. Therefore, it receives support from the African Development Bank and the African Union, and the pipeline is considered an opportunity for the development of the three countries, especially the countries through which the pipeline will pass in order to transport gas. Neighboring countries will also benefit from the pipeline – and among these countries is Mali – as these countries can transport gas through… Sub-pipelines for all gas transportation.

After its entry into force, the project will allow the supply of gas to the Sahel countries, and the pipeline to Algeria represents an example of the will of the three partners to embody a regional facility with an international dimension. The cost of the pipeline reaches about 13 billion US dollars. On September 22, 2021, the Minister of Oil of Nigeria stated that Nigeria is expected To start establishing the project, he met with a number of companies and countries in Europe in order to obtain funding to complete the project.

The year 2022 witnessed the announcement of financing sources in Egypt and Italy, through which the project will be provided with financing so that gas can be pumped from Africa to Europe. The Minister of Finance in Nigeria, Zainab Ahmed, stated that Nigeria is looking for low-cost financing in order to expand gas projects. In order to meet local needs in addition to exporting it to various countries of the world that need to export gas.

Gas is considered important at this stage as it is considered a clean fossil fuel compared to other types of fuel. Therefore, Nigeria wants to expand gas production, and Nigeria’s Oil Minister, Timbre Sylva, confirmed on September 7, 2022 – in light of his participation in the “GASTECH” conference, which was held in Milan, Italy – that Europe seeks to abandon Russian gas, and to achieve this requires… Obtaining alternatives to Moscow, Nigeria is scheduled to take a decision soon regarding infrastructure investments for the gas export pipeline to the African continent, which exceed $10 billion, and the Algerian-Nigerian gas pipeline is gaining great importance as it is an investment supported by the Bank and the African Union, and he pointed out Algeria is contributing to the restructuring of the African Development Fund with about $10 million, which makes Algeria one of Africa's largest contributors to the Fund.

Challenges facing the project:

The project faced several challenges; On July 26, 2023, the Republican Guard in Niger witnessed the move to carry out a military coup that resulted in the arrest of President Mohamed Bazoum and his family. The tense security situation following the military coup in Niger led to the disruption of work on the project, especially in light of Europe’s hostility to the new leaders in Niger.

Niger is considered a pivotal point in the African geopolitical scene as a result of the active involvement of France, the United States of America, Turkey, Russia and the UAE, and Niamey plays a major and pivotal role at the intersection of energy resources and geopolitical interests.

A major challenge that has prompted many to question the feasibility of the project is the problem of the local basic infrastructure in Nigeria, especially with regard to the troubled AKK pipeline. An expert at the Lagos-based legal consulting firm Megathos Law Practice, Olofola Woso, said that the project faced challenges. They are as follows:

  • * The security situation in Niger and neighboring areas poses a great danger and affects the stability of the project before and after construction.
  • * The pipeline's reliance on the late KK Pipeline, which is self-funded, is due to complexity and uncertainty.