The idea of the trans-Saharan pipeline was first proposed in the 1970s. On 14 January 2002, the Nigerian National Petroleum Corporation and Algerian national oil and gas company Sonatrach signed the Memorandum of Understanding for preparations of the project. In June 2005, NNPC and Sonatrach signed a contract with Penspen Limited for a feasibility study of the project. The feasibility study was completed in September 2006, and it found the pipeline to be technically and economically feasible and reliable. On the meeting on 20 February 2009, NNPC and Sonatrach agreed to proceed with the draft Memorandum of Understanding between three governments and the joint venture agreement. The intergovernmental agreement on the pipeline was signed by energy ministers of Nigeria, Niger and Algeria on 3 July 2009 in Abuja. Safety concerns about the operations have been heightened due to the In Aménas hostage crisis of 2013. Nigeria, Niger and Algeria are among the least secure areas in the region because of various active terrorist movements that destabilise them.
The annual capacity of the pipeline would be up to 30 billion cubic meters of natural gas. It would have a diameter of. The pipeline was originally expected to be operational by 2015. The original investment for the pipeline was expected to be around US$10 billion and for gas gathering centers around $3 billion. In the year 2019 the project is still in the prospect phase
Operator
The pipeline is to be built and operated by the partnership between the NNPC and Sonatrach. The company would include also the Republic of Niger. Initially NNPC and Sonatrach would hold a total 90% of shares, while Niger would hold 10%. Russian gas company Gazprom has negotiated with Nigeria about its possible participation in the project. Also Indian company GAIL, France's Total S.A., Italy's Eni SpA and Royal Dutch Shell have expressed interest in participating in the project. According to the Algerian energy minister Chakib Khelil "only partners that can bring something to the project, not just money, should be there." Energy ministers of Algeria and Nigeria have said that "if things go well, there will be no need to bring international oil companies into the project" and "if the need for partnership in the project arises, not every partner will be welcome on board on the project."
Opposition to the pipeline
The pipeline is opposed by the Nigerian militant group Movement for the Emancipation of the Niger Delta. A spokesman for the group warned that until issues regarding the exploitation of the Niger Delta and its people have been resolved, "any money put into the project will go down the drain."
