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Algeria launches Sahara gas pipeline to Europe

Bloomberg Markets •
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Algeria has broken ground on a trans‑Saharan natural‑gas pipeline, reviving a scheme first floated decades ago to move gas from Nigeria and surrounding fields to European buyers. The project, long discussed but never built, now moves beyond planning stages as the North African government mobilises crews across the desert. The government expects the line to begin delivering flow by 2029, pending regulatory approvals.

Europe’s push for diversified energy supplies makes the route attractive, offering a land‑based alternative to maritime LNG imports. By linking West African production to existing Algerian pipelines, the corridor could unlock new revenue streams and reduce reliance on Russian gas, a factor that has reshaped European energy policy since 2022. Analysts say the overland route may cut transport costs by roughly 10 percent versus shipping.

Investors will watch construction timelines and financing terms closely, as the corridor’s cost and tariff structure remain undisclosed. If completed, the pipeline could shift regional trade patterns, granting Algeria a strategic role as a conduit for African gas to Europe. The move signals a tangible step toward expanding supply options for the continent’s largest gas market.