Nigerien Section Funding Secured for Trans-Saharan Gas Pipeline

Algeria, Nigeria, and Niger have reached an agreement on the financing structure for the Trans-Saharan Gas Pipeline (TSGP). This development was announced by Bashir Bayo Ojulari, Director General of Nigeria's NNPC, at the ADIPEC energy conference in Abu Dhabi. The agreement resolves a significant obstacle that had delayed the project for years, establishing a shared basis for investment mobilization. The total cost for the approximately 4,327-kilometer pipeline is estimated at $13 billion. The capital structure allocates 90% ownership to Algeria's Sonatrach and Nigeria's NNPC combined, with Niger's Sonidep holding the remaining 10%. Discussions regarding the final investment decision are slated to commence in 2027.

Demonstrating its commitment to accelerating the project, Algeria has pledged to fund the section of the pipeline crossing Niger. This initiative aligns with the directives of President Abdelmadjid Tebboune and aims to prevent delays to the overall project, as the Nigerien segment is currently the least advanced. By financing this crucial section, Algeria is leveraging the engineering expertise and implementation capacities of Sonatrach. In parallel, Algeria is actively negotiating the involvement of Russian companies in the pipeline's construction. Algerian Foreign Minister Ahmed Attaf reported these discussions are "advancing very well" and a contract is expected to be concluded, with "last touches" being applied to the agreement. While specific companies remain unnamed, potential roles include supplying steel pipes, providing engineering services, construction, or equipment such as compression stations.

This cooperation with Russian entities would extend existing industrial energy partnerships, such as the long-standing collaboration between Sonatrach and Gazprom International. The TSGP is designed to transport 20 billion cubic meters of gas per year in its initial phase, expanding to 30 billion cubic meters annually in a second phase, primarily destined for Europe over approximately three decades. This project reinforces Algeria's position as a significant energy hub, providing a new route for African gas to reach Europe and supporting diversification of supplies. The Algerian section of the pipeline officially began works in June 2026, while physical construction in Niger is anticipated to start in early 2027. The entire pipeline is expected to become operational towards the end of the current decade, marking a substantial step in regional energy infrastructure development.