New Telegraph

Niger Coup: $13bn Trans-Saharan Gas Pipeline Project In Jeopardy Over ECOWAS Sanctions

The Trans-Saharan Gas Pipeline (TSGP) that is expected to connect Nigeria’s Warri hydrocarbon fields to Algeria’s Hassi R’Mel feeder hub on the Mediterranean coast through the Niger Republic has been threatened.

This is because of the sanctions imposed by the Economic Community of West Africa (ECOWAS) on Niger following the coup which ousted President Bazoum.

Consequently, ECOWAS froze all service transactions, including energy transactions, between ECOWAS and Niger.

The freeze includes the assets of the Republic of Niger in Aqua Central Bank and the assets of the Niger State and state enterprises and parastatals in ECOWAS central and commercial banks

The bloc also closed air and land borders with Niger and imposed a travel ban and asset freeze for the military officials involved in the coup

ECOWAS has equally threatened to use force to reinstate Niger’s President if the coup leaders did not cede power within one week.

The decision was reached during an extraordinary summit convened by ECOWAS in response to the July coup d’etat.

The decision to freeze energy transactions in the region linked to Niger has significant impacts on the TSGP that are expected to connect Nigeria’s Warri hydrocarbon fields to Algeria’s Hassi R’Mel feeder hub on the Mediterranean coast through the Niger Republic.

The TSGP was first proposed more than 40 years ago, and an agreement was signed between the countries in 2009.

The gas pipeline is an estimated $13 billion project and could send up to 30 billion cubic metres a year of supplies to Europe.

In June 2022, the Energy Ministers of Algeria, Niger, and Nigeria revived the project and signed a memorandum of understanding to build the pipeline.

The talks on the revival of the project were held recently between the three countries that have set up a task force for the project, on the sideline of the European Union’s plan to wean itself off Russian gas following the invasion of Ukraine and is seeking alternative sources.

However, the ECOWAS sanctions on Niger have put the TSGP deal on hold, and the future of the project remains uncertain

It is also feared that the possible sanction and military actions by ECOWAS against the coup leader, General Abdourahamane Tiani, and his men, is likely to further extend the delay in the progress of the project.

Read Previous

Nina Gushes Over Her New Body Weeks After BBL Surgery

Read Next

Abandoning Oyetola’s Food Initiative For Vulnerable Will Increase Hardship In Osun – Ex-Commissioner