$13 Billion Trans-Saharan Gas Project to Boost Economic Growth in Nigeria and Others – Sylva

The federal government has said the $13 billion Trans-Saharan Gas Pipeline Project (TSGP) will represent a huge opportunity for Nigeria, Niger and Algeria to tap into European markets and spur economic growth on the continent.

The project, which would stretch from Nigeria through the Republic of Niger to the Mediterranean coast of Algeria, would also target gas supplies for Chad and Mali.

Minister of State for Petroleum Resources, Timipre Sylva, at a meeting of the parties in Abuja on Monday, said Nigeria and its African partners Niger and Algeria had stepped up their efforts to bring the project to fruition.

According to the Minister, this will bring their enormous gas resources closer to the European market, especially with the high cost of gas caused by the war between Russia and Ukraine.

“The project brings our gas directly to the European market. Today, much of the gas in Nigeria is stranded or re-injected as there is no infrastructure to bring the gas to market.

“This project will bring gas from where it is produced to the European market, and there couldn’t be a better time, as gas prices are quite firm at this stage.

“I believe it’s a very good time for us to take advantage of very high gas prices globally,” he said.

Sylva said that in addition to bringing gas to European markets, the project would stimulate economic growth on the African continent.

He said it would first create a development corridor across Africa.

“Chad is also not far from the corridor of this project. This project therefore has a lot of potential for the growth of the economies of African countries, West African countries and North African countries,” he said.

The Minister of Petroleum of the Republic of Niger, Mahamadou Mahamane, said the countries were ready to pool their resources to ensure the realization of the project.

Mahamane stressed the need to launch the project, saying it would promote regional cooperation and generate revenue for the countries.

In an address, Algerian Minister of Energy and Mines Mohamed Arkab said the reactivation of the project will boost the countries’ economic development and help them achieve carbon neutrality in line with the global energy transition.

Arkab recalled that a meeting was held in Niamey on February 16, as part of the reactivation of the trans-Saharan gas pipeline project.

Highlighting the progress made by the countries, he said the declaration had been signed by all three parties and the roadmap had been agreed.

He said that it was indeed a tangible sign of the willingness of each of them to go further on the TSGP project, with the aim of launching the update of its feasibility study.

“While being an integral part of the project to decarbonize the oil and gas industry in the short term, and to achieve carbon neutrality in the longer term, we remain convinced that a comprehensive and efficient energy transition cannot be achieved without the supply of hydrocarbons.

“As such, natural gas presents itself as an energy of excellence for ensuring this energy transition, while ensuring security of supply for markets, whose demand is only increasing.

“I invite all parties and teams to actively participate in the realization of this important project, within the required timeframe.

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