By an OGJ Online Correspondent
ABUJA, Nov. 28 -- Algerian officials will visit Nigeria in December to complete terms for a proposed Trans-Saharan gas pipeline project, the Organization of Petroleum Exporting Countries' news agency reported Wednesday.
The two countries have already signed a memorandum of understanding for the $7.5 billion project, which was previously estimated at $5-7 billion (OGJ Online, Sept. 7, 2001).
A 20-month World Bank feasibility study, which will consider environmental impact among other concerns, will begin early in 2002, said OPECNA. The bank will seek to attract other financing. It played a similar role in the $430 million West African Gas Pipeline project.
The 4,000 km pipeline would carry Nigerian gas to European markets. It would be part of the country's program to utilize its huge gas resources. Algeria would see economic benefits from the project as well, said Rilwanu Lukman, the Nigerian presidential adviser on petroleum and energy.
"European demand for natural gas continues to grow at a significant pace, demonstrating the need for the clean-burning fuel for power generation, industrial fuels, and residential markets. This project can deliver this much-needed gas supply," he said.
The proposed line would cross Niger and Algeria to Spain, where a distribution network would carry the gas to other European countries.
As part of a strategy to prepare Nigeria for the project, the state-run Nigerian National Petroleum Corp. was expected to begin the extension of the 500 MMscfd line from Ajaokuta in Kogi state to Kaduna state, to facilitate the export of gas to the European market.