Trans-Saharan gas pipeline: financial structure agreed, investment decision in 2027
By the AFREEQUE newsroom, based on Observ'Algérie
Nigeria, Algeria and Niger have agreed on the financial structure of the Trans-Saharan gas pipeline (NIGAL), stretching 4,327 km and designed to transport up to 30 billion cubic metres of gas a year. The cost is estimated at between $10 billion and $13 billion, and discussions on the final investment decision are due to begin in 2027, according to NNPC chief Bashir Bayo Ojulari, cited by El Khabar at the ADIPEC conference in Abu Dhabi.
Algeria, Nigeria and Niger have agreed on the financial structure of the Trans-Saharan gas pipeline, a gas project linking Nigeria to Algeria via Niger. Bashir Bayo Ojulari, chief executive of Nigeria’s state-owned oil company NNPC, announced the agreement at the ADIPEC energy conference in Abu Dhabi, according to El Khabar.
Discussions on the final investment decision (FID), which is to determine the definitive launch of the project, are expected to begin in 2027. The cost of the gas pipeline is estimated at between $10 billion and $13 billion, according to Bashir Bayo Ojulari.
The project brings together Sonatrach, Algeria’s state-owned oil company, NNPC and SONIDEP, Niger’s state-owned oil company. Sonatrach and NNPC would jointly hold 90% of the stakes, compared with 10% for SONIDEP, according to the announced distribution.
The gas pipeline is to run for 4,327 kilometres, including 1,185 in Nigeria, 720 in Niger and 2,422 in Algeria, to transport between 20 billion and 30 billion cubic metres of natural gas a year. The project also includes 21 compressor stations, including six in Nigeria, four in Niger and 11 in Algeria, according to El Khabar. The agreement comes after the finalisation of the association of Russian companies with the Trans-Saharan gas pipeline, announced on 1 November, followed by the arrival of Russian companies in the project, announced on 2 November.
