Tags: European Union, EU, gas pipeline, pipeline, NIGAL, Nigeria, Niger, Algeria, gas, Transaharan,
Par Pete Harrison
BRUSSELS, Sept 9 (Reuters) – A huge pipeline carrying Nigerian gas north across the Sahara Desert could help the European Union diversify its energy sources, the EU’s energy commissioner said on Tuesday.
The EU depends on Russia for around 40% of its gas and a third of its oil, but it has sought to reduce this heavy dependence since disputes between Russia and transit states like Ukraine have highlighted the fragility of the EU’s energy supply.
Friction over Russia’s invasion of Georgia last month has pushed energy security even higher up the bloc’s agenda.
European Energy Commissioner Andris Piebalgs told Reuters he was keenly interested in plans to develop the 4,300 kilometer trans-Saharan gas pipeline from Nigeria through Niger and Algeria to the Mediterranean.
“Nigeria is already very important for our security of supply – 20% of their oil and 80% of their gas goes to Europe,” Piebalgs said by telephone from Nigeria, ahead of talks on coordinating energy projects and seeking peace in the troubled Niger Delta.
Currently, Nigerian gas is shipped to Europe as liquefied LNG, but a pipeline is seen as improving security and also the prospects for transit regions in Africa, thereby reducing the flow of migrants to Europe.
“The development of a trans-Saharan project with 20 billion cubic metres per year that could arrive in Europe by 2015 and increase the security of supply for Nigeria itself and the countries it passes through makes it a very interesting project for Nigeria and Europe,” Piebalgs said.
Nigeria has the seventh largest proven gas reserves in the world, but it has been unable to develop its gas industry to its full potential due to a lack of funds and regulation.
The EU is not alone in courting Nigeria for its oil and gas reserves. Last week, Russian gas giant Gazprom signed an oil and gas exploration deal there, with plans to expand LNG exports to North America.
Nigeria hopes to double its crude production to 4 million barrels a day by 2010, although militant attacks on pipelines and financing problems have cast doubt on those plans.
But Piebalgs said that target, if achieved, could help further calm oil prices, currently around $104 a barrel after hitting an all-time high of $147.3 in July.
“Plans to increase production to 4 million barrels per day in the coming years could have a very positive impact in keeping global oil markets better supplied,” he said.
Couple Reuters
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