Algeria Deepens Sub-Saharan Energy Reach with Niger Power Plant
The initiative positions Algeria to capitilise on electricity as an entry point to the vast, largely untapped Sub-Saharan market.
In January, Algerian company Sonelgaz signed an agreement with the Nigerien Electricity Company (NIGELEC) to build a 40-megawatt power plant in Niger. The deal comes amid a push for increased energy cooperation between the two countries, as well as renewed efforts for the Trans-Saharan Gas Pipeline (TSGP) project. The pipeline deal represents a significant step for Algeria in its rivalry with Morocco for access to the Sub-Saharan African market.
Electricity: An Entry Point for Algero-Moroccan Rivalry
Late last year, Niger’s Ministry of Petroleum stated that it would be making efforts to ease and facilitate Algerian investment in its oil sector. A meeting between the minister and his Algerian counterpart specified the resumption of Sonatrach’s operations in the Kafra Lil field and the creation of a joint task force. The renewed efforts will add to the TSGP project running from Nigeria through Niger to Algeria, which is set to transport 30 billion cubic meters of natural gas across the Sahara Desert to Europe.
The recent Sonelgaz-NIGELEC agreement will further strengthen these energy relations. According to the deal, Sonelgaz will fully finance the construction of the new power plant in Niger- with some reports calling the project a ‘donation’ from Algeria. Training and expertise sharing are also part of the agreement, which aims to increase access to electricity for the Nigerien population, as those with access are estimated to number less than a quarter of the population. The lack of electricity is a widespread issue facing sub-Saharan Africa as a whole. As such, initiatives like these from Algeria and other countries are likely to benefit the sub region and provide an arguably accessible entry point to a vast, largely untapped market. Morocco, for one, is capitalizing on this with Mauritania, a key arena of Algero-Moroccan rivalry; just last month, the two etched an agreement to connect their electricity grids.
With the closure of the Maghreb-Europe Gas Pipeline, which previously transported Algerian gas to Europe via Morocco, the North African rivals are now competing through alternative pipelines and forging new partnerships.
Two key pipelines are at the centre of this rivalry: one running through Algeria and the other through Morocco. Rabat’s Nigeria-Morocco Gas Pipeline (NMGP) efforts are supported by the US, Europe, and Israel, as an African leg of the IMEC. It is set to pass through eleven African countries on its way to Europe. Niger’s recent pipeline deal with Algeria underscores this ongoing competition; as both nations vie for influence and access to the sub-Saharan market, Algiers is seeking to secure its own route.