The government of Nigeria has inked agreements with Algeria and the Republic of Niger to improve gas supplies to European markets and advance the Trans-Saharan Gas Pipeline (TSGP). The agreements signed involved energy companies from the three companies, according to a post by Dada Olusegun, President Bola Tinubu’s Special Assistant on Social Media.
The agreements were reportedly signed by representatives of the three African nations during a project meeting held on Tuesday, February 11, 2025, in the Algerian capital of Algiers. Olusegun added that the agreements contained a non-disclosure agreement (NDA), a compensation agreement, and a contract for updating the project’s feasibility study.
What you need to know about the Trans-Saharan Gas Pipeline?
The 4,000-kilometer Trans-Saharan Gas Pipeline (TSGP) project, which will allow Nigerian gas to be piped into Europe, was formally formalized on July 28, 2022, in Algiers by Algeria, Niger, and Nigeria after months of negotiations. The project, which was first proposed in the 1970s, made headway in 2002, 2005, 2006, and 2009 before stalling.
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The Trans-Saharan Gas Pipeline (TSGP) project aims to connect Algeria’s Hassi R’Mel hub on the Mediterranean coast with Nigeria’s Warri hydrocarbon fields by building a pipeline across the Sahara Desert. The TSGP is expected to require an investment of $13 billion, of which $10 billion will go toward construction and equipment and $3 billion will go toward gas gathering centers.
Trans-Saharan Gas Pipeline: What it means for Nigeria?
With about 5.5 trillion cubic meters of gas reserves (30 percent of the continent overall), Nigeria has the largest gas reserves in Africa. Algeria comes in second with 4.5 trillion (25 percent of production). The two nations were responsible for 86% of African gas exports in 2020, with 28% going to Nigeria and 58% going to Algeria, which has the largest gas pipeline network on the continent. The Policy Center for the New South provided data showing that over 62 percent of these exports are going to Europe.
The TSGP project has the potential to increase Nigeria’s energy security by ensuring a consistent supply and reducing the nation’s reliance on imported gas. Gas is tomorrow’s energy, and with its high demand, this project is highly profitable for the economy and could boost economic growth. In addition, given the high cost of gas brought on by the conflict between Russia and Ukraine, the project would bring the gas resources of the participating nations closer to the European market.
