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ALGERIA, NIGERIA AND THE TRANS-SAHARAN PIPELINE

Oil and gas from North and West Africa are the newest regions to attract Europe’s attention as it looks to diversify its energy supply. The most ambitious proposal to date is a planned 4,300km pipeline across the Sahara desert to bring Nigerian gas to Europe. Starting from a point in Nigeria, the Trans-Saharan gas pipeline would cross the border into neighbouring Niger, then up across the desert into Algeria, where it would hook into Algeria’s existing network. From there, the gas would make its final journey across the Mediterranean through expanded pipeline capacity due to come on-stream in 2010. In addition, there are future prospects for diversifying European sources of supply in the large oil and gas reserves of Angola. The Trans-Saharan pipeline idea is not a new one and is in theory, very attractive. The pipeline would turn Algeria into a major EU energy hub. Algeria has already emerged as a significant energy source that could alleviate heavy dependence on Russian supplies. Currently the third largest gas supplier to the EU, Algeria in 2005 exported over 55 bcm of gas to Europe, or 19.1 per cent of the EU’s overall gas imports. Algeria has the eighth-largest proven reserves of natural gas in the world. The potential for increasing reserves and production is thought to be high. Algeria is the fifth-largest natural gas producer worldwide and the largest producer among OPEC member countries. Algeria currently exports LNG to Europe and the United States, and natural gas via sub-sea pipelines under the Mediterranean