Gas Project: Nigeria, Algeria Approve Work Programme
Energy
By Mike Oduniyi
Nigeria and Algeria have approved the work programme for the execution of the $6 billion Trans-Sahara Gas Pipeline Project (TSGP).
The project entails the supply of Nigeria's natural gas through a 4,400-kilometre long pipeline to Europe via Algeria.
A communique issued at the end of a two-day visit to Nigeria by Algeria's Energy and Mines Minister, Dr. Chakib Khelil, said the Sponsor Management Com-mittee (SMC) of gas pipeline project met in a special session and approved the work programme of the Preliminary Study Team (PST).
Khelil, who led a delegation from the North African country to hold discussions with Nigerian government officials on strengthening of bilateral cooperation for the joint development of the two countries' hydrocarbon resources, met with the Special Adviser on Petroleum and Energy, Dr. Edmund Daukoru.
The communique said both parties reaffirmed their commitment to the TSGP, as well as the Trans Saharan Highway and the fibre optic cable.
"In line with the recommendations of the Bi-National Commission, the two parties reaffirmed their support for the implementation of the integrated Trans Saharan projects indicated above."
Furthermore, it stated, they expressed their satisfaction with the progress made so far in the implementation of the work schedule for the Trans Saharan Gas Pipeline and commended the work already done by the Preliminary Study Team (PST) of the TSGP.
The gas pipeline will be 4,400km long with about 800km across Niger Republic.
Gas is expected to flow at 18 billion cubic metres per year reaching up to 25 billions m3/year from Warri in Nigeria to Beni Saf, Algeria, and finally to consumers in Europe.
The Nigerian National Petroleum Corporation (NNPC) is handling the project on behalf of the Federal Government while Algeria's state-run oil company Sonatrach, is in charge for the North African country.
The two countries signed a Memorandum of Understanding (MOU) in January 2002.
The project will represent the biggest market outlet, after the Liquefied Natural Gas (LNG) project, for Nigeria's huge gas deposits put at 165 trillion cubic feet. has just been signed
Also, the two delegations exchanged information on the investments opportunities available in their respective countries with Nigeria inviting Algeria to participate in the ongoing privatisation of the downstream oil and gas industry in Nigeria as well as the next upstream acreage bidding round slated for the first quarter of 2005.
"As a follow-up of exchange of ideas, a number of technical presentations were made by the two delegations. In this context, they agreed to continue the exchange of information on the oil and gas value chain and the international markets to maximise the value of their hydrocarbon resour-ces," the communique stated.
During their discussions, attended by Mr. Abdelkader Mesdoua, the Algerian Ambassador to Nigeria, the two parties reiterated their commitment to the existing African regional institutions such as African Union (AU), African Petroleum Producers Association (APPA) and their shared experiences as members of the Organisation of Petroleum Exporting Countries (OPEC).
The parties agreed to meet, again, in parallel with the 3rd Bi-National Commission which will take place in Abuja on October 7 and 8, 2004.
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