$13 Billion Nigeria, Algeria Gas Pipeline Delivery Deals Hit the Rocks

The length of the pipeline is estimated at roughly 4,200 kilometres (2,609 miles): 1,037 kilometres (604 miles) in Nigeria, 853 kilometres (530 miles) in Niger, and 2,310 kilometres (1,435 miles) in Algeria.

SEATTLE (Oil Monster): The $13 billion gas pipeline delivery deals between Nigeria and Algeria have hit the rocks, New Telegraph has learnt.

Tagged the Trans-Saharan Gas Pipeline (TSGP), the proposed natural gas pipeline from Nigeria to Algeria, it was learnt, had been abandoned after financing fell through.
The Nigerian government is saddled with the fresh deals between it and Morocco. A document by New York City-based Morocco World News showed that cost of the Trans-Saharan Gas Pipeline (TSGP) investment is estimated at $13 billion – $10 billion for the pipeline and $3 billion for the gas.

The length of the pipeline is estimated at roughly 4,200 kilometres (2,609 miles): 1,037 kilometres (604 miles) in Nigeria, 853 kilometres (530 miles) in Niger, and 2,310 kilometres (1,435 miles) in Algeria.

Designed to supply Europe by connecting to the existing Trans-Mediterranean, Maghreb-Europe, Medgaz and Galsi pipelines across the Mediterranean coast, the TSGP has been replaced with “Trans-Africa Gas Pipeline (TAGP) deals with Morocco.

Like the TSGP, the new pipeline would initiate in the swampy region of the Niger Delta basin, then across the cultivated lands and tropical forests of North Nigeria. In Niger, the pipeline would cross the Sahel region, a semi-arid tropical savannah preceding the Sahara desert.
Almost half of the proposed route for TSGP traverses arid expanses before crossing over the Atlas Mountains, finally reaching Hassi R’Mel, a hub for natural gas and oil pipelines running to the Algerian coast.

“The TSGP previously been discussed between Nigeria and Algeria in 2002, was abandoned after financing fell through,” the document showed.

Meanwhile, in December 2016, an announcement was made of a 5000 km Nigeria-Morocco offshore gas pipeline. With an estimated cost of 20 billion US dollars, the pipeline is said to be a continuation of the existing 678 km long West African Gas pipeline that has been in service since 2010. It aims to serve 12 countries on the African continent and some 300 million potential consumers.

A few days ago, Morocco and Nigeria signed a joint declaration in Rabat laying out the next steps for the completion of the gas pipeline deal.

Some say the project will be conducive to economic integration in the region and will help West African countries meet their energy needs as well as boost Nigeria’s export potential to Europe. Others however, fear the project’s environmental implications.

Courtesy: www.newtelegraphonline.com