Petroleum and energy ministers Rilwan Lukman of Nigeria, Chakib Khelil of Algeria and Mohammed Abdullahi of Niger signed the agreement in Abuja, Nigeria in July.

The pipeline will span approximately 4,400 km from the Warri region in Nigeria, to Hassi R’Mel in Algeria, and is expected to have a capacity of 30 billion cubic metres per annum.

The project is expected to deliver first gas by 2015, and cost a total of $US12 billion to construct.

Russian state gas company Gazprom recently formed a joint venture with the Nigerian National Petroleum Corporation (NNPC) 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.

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Gazprom has said that the joint venture will construct the Nigerian part of the Trans-Sahara Gas Pipeline. The Nigerian section will be 360 km in length, and is likely to cost between $US400–500 million. This will be the first trunk line section to be constructed.

Feasibility studies recentlycommissioned by NNPC for the trinational project have proved it commercially viable.

NNPC Group Managing Director Mohammed Sanusi Barkindo has said that the Trans-Sahara Gas Pipeline project will strengthen relations between the countries involved.

“The signing of the MoU on the project will demonstrate to the international community our resolve to strengthen our bilateral relations as well as our commitment to pursue the project,” Mr Barkindo said.

He said the project remains a unique opportunity for both Nigeria and Algeria to diversify their source of energy supply through gas.

“Gas is gradually becoming the fuel of first choice as well as the preferred source of energy,” he said.

President and Chief Executive Officer of Algerian national oil and gas company Sonatrach Mohammed Mezaine said Algeria welcomed the opportunity to partake in the project and was ready to add value to it for the benefit of all parties involved.

Mr Mezaine said the project would develop the communities along the pipeline route throughout all three countries.

European Union (EU) Energy Commissioner Andris Piebalgs said that access to Nigerian gas reserves was crucial to Europe as gas consumption is on the rise.

Mr Piebalgs said natural gas imports may reach 85 per cent of the EU’s consumption by 2030, compared with 50 per cent in 2000. This raises significant concerns about the EU’s security of supply.