The 3rd Steering Committee meeting of the $13 billion Trans-Sahara Gas Pipeline (TSGP), traversing 4,218 km from the Niger-Delta to Algeria, ended in Abuja recently with Nigeria assuring all partners that it has kept about 14 trillion standard cubic feet of gas (tscf) for the project which when completed on schedule, would deliver about 30 billion csf of gas to European markets from 2015 onwards.

The TSGP, which initially had only Nigeria and Algeria as sponsors, also announced the inclusion of the Republic of Niger as a new partner, but said the equity participation is being worked out.

Speaking to Energy Correspondents at the end of the meeting, Nigeria Minister of State for Energy in charge of Gas, Mr. Emmanuel Odusina, said that after detailed study of Nigeria's gas reserves, cluster 5 and 6 of its reserves which hold between 13 – 14 tscf of gas, has been reserved for the TSGP.

This represents about 7% of Nigeria’s gas reserve estimated at 184.2 trillion cubic feet, making her the country with the largest reserves in Africa and the 7th largest in the world.
Odusina said that the issue of gas supply was deliberated upon and all the co-sponsors expressed satisfaction over the issue.

The Minister of Mines and Energy of Algeria, Dr. Chakib Khalil, on his part, expressed optimism on the economic and socio-political viability of the project in the overall development of the three countries in line with the New Partnership for African Development (NEPAD), saying that the World Bank and other international development partners are excited about the project.

He said that the three countries are only going to contribute $2.5 billion for the entire project, while the balance would be provided for by the private sector and international development partners.

According to him, with the steady rise of gas prices at the international market is an assurance that by end of the project, the business will be very profitable.
The Algerian minister then explained that the three countries are looking forward to signing a Supply Purchase Contract with buying European countries while the project is still on.

His counterpart from the Republic of Niger, Mohammed Abdullahi, enthused about his country saying Niger Republic will rely heavily on the experience of Nigeria and Algeria in its investment into the project.

The TSGP championed by the Nigerian National Petroleum Corporation (NNPC) and its Algerian counterpart, Sonatrach, has 1037km of its length on Nigerian soil, 841 km on Niger soil and then 2,310 km on Algerian soil. When completed, it would be the biggest gas supply source to Europe through the Mediterranean.

It would be recalled that in June 2005, Penspen Limited signed a contract with Nigerian National Petroleum Corporation (NNPC) and Sonatrach of Algeria for a feasibility study for the Trans-Saharan gas pipeline. The pipeline is proposed to connect to gas resources in Nigeria and Algeria and transport them to consumers accessible from the pipeline along its route and at its terminal point on the Mediterranean coast of Algeria.

Penspen, a specialist oil and gas facilities and pipeline engineering group, was expected to work with IPA Energy Consulting Limited in the joint venture.

The scope of work encompasses market analysis, pipeline infrastructure requirements, establishment of gas supply sources, project cost estimates, assessment of the policy issues and institutional framework relating to the project, economic and financial analysis, pipeline route survey, project risk analysis, assessment of environmental issues and a regional benefit study.

The time for execution of the study was nine months. The world-class pipeline could have an impact not only on the African continent but is also expected to become a major supply conduit for gas into Europe.