Algeria Advances $13bn Gas Corridor to Europe

  • Algeria has revived plans for the 4,000km Trans-Saharan Gas Pipeline to transport Nigerian gas to Europe.
  • The project competes with the longer Nigeria–Morocco pipeline, with both initiatives racing to secure financing.

Abdourahamane Tiani visited Algiers on February 15-16 to restore relations between Niger and Algeria after months of tension. During the visit, President Abdelmadjid Tebboune announced the relaunch of the Trans-Saharan Gas Pipeline (TSGP). This decision repositioned the project within the broader effort to supply Nigerian gas to Europe, as the continent continues to diversify its energy sources.

At a joint press conference, President Tebboune confirmed that construction will commence after Ramadan. Algeria’s state-owned energy company, Sonatrach, will oversee implementation. The announcement followed renewed diplomatic engagement. The countries reinstated ambassadors, resumed ministerial visits, and on 11 February signed three agreements with Nigeria. These agreements update feasibility studies, establish compensation mechanisms, and formalise information-sharing procedures.

The TSGP will extend over 4,000 kilometres. It will connect Nigerian gas fields to Algeria’s Mediterranean coast. From there, exports will move through existing Algerian infrastructure to European markets. The pipeline is expected to transport between 20 and 30 billion cubic metres annually. The estimated cost stands at approximately USD 13 billion. Although stakeholders first proposed the project in the early 2000s, Europe’s post-Ukraine energy realignment has renewed its strategic relevance.

However, the TSGP faces competition from the Nigeria–Morocco Gas Pipeline. This alternative proposes a longer Atlantic corridor spanning more than 6,000 kilometres. It will cross several West African countries before linking to Morocco’s network and onward to Europe. The estimated cost is USD 25 billion, with projected capacity of up to 30 billion cubic metres per year.

In September 2025, project sponsors established a dedicated company to advance the Nigeria–Morocco initiative. They also secured interest from multilateral lenders, including the European Investment Bank, the Islamic Development Bank, and the OPEC Fund for International Development.

Both pipelines target the same Nigerian gas reserves and European consumers. Nevertheless, they reflect distinct geopolitical and infrastructure models. Algeria’s proposal relies on a direct Mediterranean connection and existing export infrastructure. In contrast, the Moroccan route requires extensive new coastal infrastructure across multiple transit states. It offers potential supply to West African markets along the Gulf of Guinea.

Niger plays a central role in Algeria’s strategy. Previous tensions, including the Malian drone incident and shifting alliances within the Alliance of Sahel States, had strained relations between Algiers and Niamey. Recently, diplomatic engagement has intensified. Algeria’s energy minister visited Niamey in January. A Sonatrach delegation assessed joint energy projects. These developments preceded President Tiani’s February visit.

Algeria has also positioned the TSGP within a broader effort to strengthen its influence in the Sahel. It signed new energy cooperation agreements with Burkina Faso and deepened engagement with Alliance of Sahel States members. The pipeline functions as both an economic initiative and a diplomatic instrument.

Despite renewed political support, financing remains the decisive factor. Sponsors have yet to secure the full USD 13 billion required for the TSGP or the USD 25 billion needed for the Nigeria–Morocco corridor. Both projects are therefore competing for investor confidence and long-term European purchase agreements at a time when Europe seeks stable alternatives to Russian gas.

The route Nigerian gas takes to Europe will depend on which corridor secures financing, ensures political stability, and guarantees sustained demand.

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