Trans-Saharan Gas Pipeline: An African project that could reshape global energy markets
After repeated delays, the Trans-Saharan Gas Pipeline officially restarted work in early June, linking Nigeria, Niger and Algeria to export natural gas to Europe.
Project Revival
In early June, work on the Trans-Saharan Gas Pipeline (TSGP) was officially restarted, following a thaw in relations between Niger and Algeria. The first construction phase began in Algeria’s Adrar region. The pipeline, over 4,000 kilometers long, will transport Nigerian gas through Niger and Algeria to European markets, mainly Italy and Spain.
The project is not new; it has been discussed since the 1980s but faced multiple delays due to financial and diplomatic challenges. A 2009 agreement set a target for first gas delivery by 2015, but stalled. A memorandum of understanding was signed in 2022. The 2003 coup in Niger and subsequent tensions hindered progress, but a recent visit by Niger’s leader to Algeria revived momentum.
Costs and Financing
Initial cost estimates were around $13 billion, but have now risen to approximately $20 billion, partly due to rising raw material prices and difficult desert terrain. No official budget has been disclosed. African and international banks may provide financing, but no commitments have been made.
Geopolitical Context
European demand for natural gas has surged since Russia’s invasion of Ukraine and tensions in the Strait of Hormuz. The TSGP could deliver about 30 billion cubic meters annually—roughly 11% of Europe’s gas imports. However, security risks remain as the pipeline crosses areas in northern Nigeria and Niger where armed groups operate.
Competition with Morocco
A rival project, the Africa Atlantic Gas Pipeline (AAGP) championed by Morocco, is also in development. The 6,000-km pipeline would involve 13 countries and aims to export Nigerian gas to Europe, with an estimated cost of $25 billion. The TSGP is currently more advanced, but both could coexist if European demand stays high.
