Lawmakers in Nigeria’s House of Representatives have commenced investigation into the delay being entertained in the commencement of the Trans-Saharan Natural Gas Pipeline project.
The Trans-Saharan gas pipeline (also known as NIGAL pipeline and Trans-African gas pipeline) is a planned natural gas pipeline from Nigeria to Algeria. It is seen as an opportunity to diversify the European Union’s gas supplies.
Yesterday at plenary, the House adopted a motion by Hon Ahmed Munir, calling for the probe. According to Munir, the Nigerian National Petroleum Corporation (NNPC) and the Algerian National Oil and Gas Company (Sonatrach) had on Jan. 14, 2002, signed a Memorandum of Understanding for a $12billion pipeline project. The plan was to construct 4,128 kilometers of natural gas pipelines with a projected annual capacity of 30 billion cubic meters that will extend gas supply to Europe.
He also informed that the feasibility studies for the project had been completed since September 2006.
The lawmaker affirmed that the pipeline was discovered to be technically and economically feasible and reliable which, in turn, led to the inter-governmental agreement on the pipeline signed by the energy ministers of Nigeria, Niger, and Algeria on July 3, 2009 in Abuja.
“In 2013, the federal government approved a budget of $400million for commencement of the project originally scheduled to be operational by 2020 with no commensurate progress made to date.
He said the investigation is necessary given that a new Gas Master Plan (GMP) needs to be crafted due to the current geopolitical developments such as the newly completed 20, 000 barrel per day Zinder Refinery in the Niger Republic, new Niger-Benin Republic Pipeline due for completion in 2023, and the discovery and exploitation of hydrocarbons in commercial quantity in the Lake Chad Region of Chad Republic.
Hon Munir stated that the investigation is further necessary in view of the prospects of oil and gas on the Nigerian side of Lake Chad, the discovery of hydrocarbons in Bauchi, a spike in the cost of hydrocarbon, security situation along the right of way across the Sahel, as well as the Russia-Ukraine conflict leading to Western nations looking for alternative options to meet energy demands.
“The successful completion of this vital project will create jobs, spur economic growth, and enhance energy and regional security,” he said.
Adopting his motion, the House urged NNPC to provide information regarding the implementation, funding, utilization, and status of the project. They also asked the national oil company to review the National Gas Master Plan relating to the project to conform to the variables of today’s global economy.
The House Committee on Gas Resources was mandated by the House to ensure compliance and report back within four weeks for further.
By Chidi Ekpewerechi
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