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Notes from the Trans-Sahara Gas Pipeline conference
European Energy Commissioner Andris Piebalgs participated as a keynote
speaker at a conference on the Trans-Saharan Gas Pipeline project which
could supply gas from Nigeria to Europe through Niger and Algeria
In his speech, Commissioner Piebalgs emphasized the importance of energy
cooperation through the existing Euromed framework and the forthcoming
EU-Africa Energy Partnership and underlined that the diversification of
suppliers and routes is a key part of the EU's strategy for the security
of energy supply.
“The Trans-Sahara Gas Pipeline could constitute a promising supply
source and route for the EU. In this context, the available proven gas
reserves, the feasibility of the project, its economic viability and the
geopolitical developments in the region need to be clearly assessed.
Today's conference should help provide us with some preliminary answers
to those questions", declared Mr Piebalgs.
The 4,300 km long Trans-Saharan Gas Pipeline's departure terminal would
be Brass in the Niger delta and its arrival terminal could be either
Beni Saf or El Kala in Algeria. The pipeline's capacity should reach up
to 30 bn cm starting by 2015.
The Conference presenting the Trans-Saharan Gas Pipeline was initiated
by the Algerian Minister of Energy and Mining, Mr Khelil, Sonatrach and
the Nigerian Ministry of Energy. Its main purpose was to present the
pipeline project, discuss its feasibility and attract potential
investors.
EU access to Nigerian gas reserves is particularly crucial since
European gas consumption and gas imports will increase significantly in
the future. An increase in demand for natural gas and declining domestic
production will result in a significant growth of import dependency.
Consequently, natural gas imports may reach 85 % of EU gas consumption
by 2030 compared to 50 % in 2000.
This raises significant concerns about the EU's long-term security of
supply. This is particularly the case given the growing dependency upon
gas imports originating from a limited number of supplier nations,
combined with the need for long distance transport infrastructures.
Nigerian gas reserves are estimated at 5tcm -- equal to roughly 10 years
of consumption of the EU -- most of which are currently dedicated to
liquefied natural gas (LNG) schemes. These are being expanded
continuously due to growing transatlantic demand.
Moreover, the West African Gas Pipeline project (WAGP), signed by Togo,
Benin, Ghana and Nigeria, as well as the gas supply to Equatorial Guinea
are ambitious projects supplying the larger West Africa region.
The available Nigerian gas reserves therefore need to be carefully
assessed, taking into consideration not only the current and future LNG
needs, but also the West African Gas Pipeline supply needs and local gas
demand.