The inability of West African countries to quickly resolve the Niger Republic coup is threatening the delivery of the $13bn Trans-Sahara gas pipeline, as the project faces funding challenges.<\/p>\n\n\n\n
S&P Global, in its report \u2018Niger coup, financing woes rock Nigeria\u2019s plan to supply gas to Europe\u2019, said the project, which was one of Nigeria\u2019s critical domestic investments, was currently bedevilled by funding challenges.<\/p>\n\n\n\n
Apart from being a major project in the country\u2019s oil and gas sector, the Trans-Sahara pipeline, the project had been described as the West African country\u2019s ticket to the European gas market.<\/p>\n\n\n\n
The 4,128 km pipeline from Warri through the Niger Republic to Algeria\u2019s Hassi R\u2019Mel gas hub has been under construction since 2002.<\/p>\n\n\n\n
When completed, it would transport a total of 30 billion cubic meters of gas daily.<\/p>\n\n\n\n
\u201cThe Trans-Saharan gas pipeline project presents an ambitious vision for energy infrastructure in Africa, however, its feasibility faces two critical challenges,\u201d said an energy expert and partner at Lagos-based Megathos Law Practice, Olufola Wusu, was quoted in the report to the American-based financial information and analytics corporation.<\/p>\n\n\n\n
\u201cFirst, the security situation in Niger and neighbouring regions poses a substantial risk to the project\u2019s stability prior to construction and post-construction. Second, its dependency on the delayed and self-funded AKK pipeline introduces complexity and uncertainty,\u201d Wusu added.<\/p>\n\n\n\n
The project now faces delay as much of the pipeline\u2019s $13bn capital expenditure would be spent in the Niger Republic.<\/p>\n\n\n\n
A military coup in the Niger Republic in July prompted the Nigeria-led Economic of West African States members to threaten to deploy troops to restore democracy in the country.<\/p>\n\n\n\n
Former President Mohammadu Buhari, in line with further exploring the country\u2019s vast natural gas resources, declared 2020 and beyond a Decade of Gas.<\/p>\n\n\n\n
The country\u2019s current gas reserves stand at 209 trillion cubic feet, according to the Nigerian Upstream Petroleum Resources Commission.<\/p>\n\n\n\n
A Lagos-based analyst with FBNQuest, Uwadiae Osadiaye, was quoted in the report as saying the continuation of the pipeline would depend on Niger\u2019s junta decides to \u201cplay ball\u201d.<\/p>\n\n\n\n
\u201cIf I am a member of the new government, I would consider it an opportunity for my country\u2019s economy,\u201d he said.<\/p>\n\n\n\n
\u201cThe generals still want to do it,\u201d the Chairman of the African Energy Chamber, a lobbying group, NJ Ayuk, also told S&P Global.<\/p>\n\n\n\n
The S&P report came on the heels of a report by The PUNCH last month that the Niger coup had become a threat to other gas infrastructural projects such as the $25bn Nigeria-Morocco gas pipeline and the 614 km Ajaokuta-Kaduna-Kano gas pipeline.<\/p>\n\n\n\n
Construction of phase one of Nigeria\u2019s section of the AKK pipeline was stalled due to a lack of available financing after Chinese banks pulled out of the project, according to an earlier report. As a result, the Nigerian National Petroleum Company Limited as of April had sunk about $1bn into the 70 per cent completed project.<\/p>\n\n\n\n
Its delivery was earlier billed for completion in 2022 and then shifted to the first quarter of this year.<\/p>\n\n\n\n
\u201cWe will put gas on this line before the President leaves \u2026 by the first quarter of 2023. We will put gas on this line. Power will be stabilised, industries will come up as a result of this project,\u201d the Group Chief Executive Officer of NNPCL, Mele Kyari, said last year.<\/p>\n\n\n\n
The spokesperson for the NNPCL,\u00a0 Garba Muhammad, did not respond to inquiries on the viability of delivering the Trans-Sahara pipeline project any time soon.<\/p>\n\n\n\n
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The inability of West African countries to quickly resolve the Niger Republic coup is threatening the delivery of the $13bn Trans-Sahara gas pipeline, as the project faces funding challenges. S&P<\/p>\n","protected":false},"author":1,"featured_media":8112,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_rishi_post_view_count":234},"categories":[15],"tags":[],"class_list":["post-8111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economia","rishi-post"],"rishi__cb_customizer_meta":"","comments_count":"0","yoast_head":"\n