Algeria: Reviving Regional Pipeline Amid Moroccan Competition Energy

by | Feb 12, 2025 | Algeria, Diplomacy, Economic, Political, Social

Summary:

On 11 February 2025, Algeria, Nigeria, and Niger held the fourth ministerial meeting of the Committee of the Trans-Saharan Gas Pipeline (TSGP) during which representatives from each country signed agreements to accelerate the implementation of the TSGP, which aims to construct a continental gas pipeline for transporting African natural gas to European markets. 

                                          [mepr-show if=”loggedout”] Please login or purchase an InBrief membership to view the rest of this report [/mepr-show] [mepr-show if=”loggedin”] 

The agreements include a contract to update the feasibility study of the pipeline, compensation agreements, and a non-disclosure agreement between the companies involved in the project implementation.  

Days earlier, a delegation from the Algerian national gas company, Sonelgaz, met with counterparts from Nigerien electricity company, Nigelec, to discuss a draft Memorandum of Understanding to construct a power plant in Niger within a broader plan to boost cooperation in electricity production between the two countries.  

 

Outlook: 

Algeria’s recent moves indicate growing interest in reviving cooperation with Niger and Nigeria to implement energy projects that have been stalled for decades. These efforts are likely driven by a sense of growing competition with neighbor Morocco, as tensions between the two countries have continued to disrupt regional cooperation. 

Continental gas pipelines and regional integration of electricity production are two fields in which Algeria faces growing competition from Morocco, with Rabat proposing alternative plans that offer an alternative to Algerian projects.  

If implemented, the TSGP project could boost Algeria’s position as an energy hub for exports to Europe while attracting foreign companies interested in potential gains from Algerian-African cooperation. 

Algeria and Morocco are likely to capitalize on European interest to seek alternative gas providers amid the ongoing war in Ukraine and find the financial means and technical support from private companies to implement their projects. 

However, the simultaneous moves from both countries risk hindering advancement in project implementation as it is unclear if Nigeria has the capacity to implement both pipeline projects proposed by Algeria and Morocco at the same time.  

Meanwhile, security threats have long-blocked the implementation of trans-Saharan pipelines which make it necessary to review security coordination at a regional and international level. 

[/mepr-show] 

Explore our services or speak with our team of North Africa-based risk experts.