The idea of a pipeline across the Sahara to transport Nigerian gas via Niger to Algeria for export to Europe has been around since the 1970s, but hasn't made much progress for a mix of fairly uncomplicated reasons - cost, economics and lack of political consensus. Last month's intergovernmental Trans-Saharan Gas Pipeline (TSGP) agreement between Abuja, Algiers and Niamey has addressed one of those concerns, as well as raising the possibility of a Russian or European partner taking equity in the project. But other issues remain, not least over likely European demand for Nigerian gas (PIW Jul.l3,p6). Royal Dutch Shell, France's Total, Italy's Eni and India's state Gail have at various times expressed interest in participating in TSGP, and the partner countries could ease the burden of financing the multibillion-dollar project by selling equity to outside investors. Russia's state Gazprom might also be interested in a role, having just formed a joint venture with state Nigerian National Petroleum Corp. to invest up to $2.5 billion in a range of projects.
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