New pipeline deal to ease Nigeria’s gas supply to Europe

The Nigerian government has signed agreements with Algeria and the Republic of Niger to advance the Trans-Saharan Gas Pipeline (TSGP) and enhance gas supplies to European markets.

The agreement, hailed as a win-win for both regions, comes as Europe continues to seek alternatives to Russian energy supplies amid the ongoing geopolitical tensions and energy crisis.

The new pipeline project, named the Trans-Saharan Gas Pipeline (TSGP), will stretch approximately 4,400 kilometers, connecting Nigeria’s vast gas fields in the Niger Delta to Europe via Niger and Algeria.

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From there, the gas will link to existing pipelines that feed into the European energy grid.

The deal was finalised after months of negotiations between Nigeria, Algeria and the Republic of Niger.

According to a post by Dada Olusegun, special assistant on social media to President Bola Tinubu, the agreements signed involved energy companies from the three companies.

He also noted that the agreements included a contract for updating the project’s feasibility study, a compensation agreement, and a non-disclosure agreement (NDA).

The statement read, “Nigeria, Algeria, and Niger have signed agreements to advance the Trans-Saharan Gas Pipeline (TSGP), a project aimed at linking Africa’s gas reserves to European markets.

“These agreements include a contract for updating the project’s feasibility study, a compensation agreement, and a non-disclosure agreement (NDA) among the energy companies from the three nations.

“The TSGP represents a strategic initiative designed to establish a continental pipeline for transporting natural gas from Nigeria, through Niger, to Algeria, facilitating exports to European markets and other international destinations.”

Europe’s energy needs

Europe has been grappling with an energy crisis since the start of the Russia-Ukraine conflict, which disrupted gas supplies from Russia, its largest supplier.

The new pipeline is expected to provide a reliable and sustainable source of natural gas to European markets, helping to stabilise energy prices and reduce dependence on Russian exports.

Economic boost for Nigeria

For Nigeria, Africa’s largest economy, the deal represents a significant opportunity to leverage its abundant natural gas reserves, which have remained underutilised due to infrastructure challenges.

The TSGP is expected to generate billions of dollars in revenue for Nigeria, create thousands of jobs, and stimulate economic growth.

The project also aligns with Nigeria’s broader strategy to transition from oil dependency to a gas-based economy. In recent years, the country has invested heavily in gas processing facilities and infrastructure to support both domestic consumption and export.

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About the TSGP

The Trans-Saharan Gas Pipeline (TSGP) is a project that involves constructing a pipeline across the Sahara Desert, linking Nigeria’s Warri hydrocarbon fields to Algeria’s Hassi R’Mel hub on the Mediterranean coast

The TSGP is expected to transport up to a trillion cubic feet of natural gas annually through 2,565 miles of pipeline. Algeria’s portion, spanning 1,435 miles, accounts for over half the total length.

Originally proposed in the 1970s, the project saw progress in 2002, 2005, 2006, and 2009 before stalling, the Energy/Petroleum Ministers of Algeria, Niger, and Nigeria met in 2022 to revive the project.

An estimated $13 billion in investment is needed—$10 billion for construction and equipment and $3 billion for gas gathering centers—to bring the TSGP to fruition.