Thursday, June 3, 2010

Nigeria to ship 25 billion cubic metres of gas

The proposed Trans-Saharan Gas- Pipeline project will transport about 25 billion cubic metres of natural gas project per year that will be recovered from flaring in Nigeria, Algeria‘s Oil Ministry has said.
Algerian Oil Minister, Youcef Yousfi, was quoted by Bloomberg on Tuesday, as saying that the gas would be injected in the pipeline, rather than burned off into the atmosphere, and shipped through Niger and Algeria to the European market.
The $10bn pipeline, scheduled to start delivering gas in 2015 from Nigeria to Europe, is 90 per cent owned by Nigeria‘s Nigerian National Petroleum Corporation and Algeria‘s Sonatrach. Niger holds the remaining stake. Algeria is Africa‘s largest gas producer and Nigeria is the continent‘s largest oil producer.

Nigeria, Niger and Algeria have signed a Memorandum of Understanding to construct the Trans-Sahara Gas Pipeline, which will carry gas from Nigeria, across all three countries and connect with existing gas pipelines to Europe.

The pipeline will span approximately 4,400 kilometres from the Warri region in Nigeria, to Hassi R‘Mel in Algeria, and is expected to have a capacity of 25 billion cubic metres per annum.

The project is expected to deliver first gas by 2015, and cost a total of $10bn to construct.

Russian state gas company, Gazprom, recently formed a joint venture with the Nigerian National Petroleum Corporation for energy development in Nigeria. The venture is intended for executing large-scale projects in oil and gas exploration, production and transportation, as well as the construction of associated facilities.

The Trans Saharan Gas Pipeline has not only fallen victim to rivalry between members of the consortium but also to tension between Russia and the European Union, which is intent on locking in new resources.

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