Nigeria’s $20b Gas Pipeline Project Stalls, Fund Shortage

The $20 billion Trans-Saharan gas pipeline project through which Nigeria will transport natural gas to Europe is stalled over shortage of funds, New Telegraph reported.

The project, which when completed, would transport about 30b standard cubic feet (scuf) of natural gas from Nigeria through Niger, Algeria to Europe, is, according to checks, not getting funds due to the oil price rout, which has affected the budget of the Nigerian National Petroleum Corporation (NNPC) and other stakeholders in the project.

Nigeria, it was gathered, had earlier mobilised $700 million to support the completion of the Nigeria-Algeria natural gas pipeline project, according to ThisDayLive. An industry source, noted that while the country raised $450m in Eurobonds and an additional direct equity contribution of about $250m in support of this project, the NNPC, which is the executor of the project, is slowing down over lack of funds to complete the project. “The project is not the priority of the government for now” he said.

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