ABUJA, Nigeria (AFP)--Three African countries Friday signed an
accord to build a $10 billion trans-Saharan gas pipeline linking
vast reserves in Nigeria to Europe.
The project will convey gas destined for the European market
more than 4,000 kilometers from the Niger Delta in Nigeria, via
Niger and Algeria.
The head of Nigeria's state oil company, Mohammed Barkindo, said
the agreement "gives this project the official stamp of approval
from the three governments, directing the national oil companies of
these three countries to begin in earnest the definitional phase of
this project."
Petroleum and energy ministers, Rilwan Lukman of Nigeria, Chakib
Khalib of Algeria and Mohammed Abdullahi of Niger signed the
agreement in Abuja.
The first delivery of gas is scheduled in 2015.
"A market opportunity of about 15-20 billion cubic meters exists
for the TSGP [Trans-Saharan Gas Pipeline] as from the year 2015,"
Lukman, also a former chief of the Organization of Petroleum
Exporting Countries, said.
"Now that this agreement is in place...we will be talking with
prospective partners who might be interested in going to bed with
us on this project," Lukman added.
No date was announced for the start of construction.
But Lukman said the next step will be to establish the
appropriate commercial, fiscal, legal and technical options ahead
of the final investment decision.
Already the Russian gas monopoly OAO Gazprom (GAZP.RS) has
expressed an interest in the venture.
Last week, Gazprom signed an agreement with the Nigerian
National Petroleum Company establishing a 50-50 joint venture in
oil, gas processing and transportation. It plans to invest $2.5
billion in a series of projects in Nigeria.
Gazprom plans to build at a cost of between $400 million and
$500 million a 360-kilometer gas pipeline running from south to the
north. It will be the first trunk pipeline to become part of the
Trans-Saharan gas pipeline, Gazprom International's chief, Boris
Ivanov, said last week.
Khalib, the Algerian minister, said financing the project wasn't
likely to be a problem.
"This project is feasible. It is a project that has all the
conditions to be very successful," Khalib said.
"We are going to look at the interest of the three countries. Up
till now, the will of the three countries, the vision of the three
countries has allowed us to come this point," Khalib said.
Niger's minister, Mohammed Abdullahi, told reporters political
uncertainty in his country "is not the type that will mortgage the
future of a project of this nature."
Nigeria claims proven gas reserves of about 183 trillion cubic
feet, making it the seventh largest producer in the world, but a
large chunk of it is wasted through daily flaring by oil
producers.