The African continent holds impressive reserves of natural gas which equal 14.56 trillion cu m, or 7.9% of the world's total. The proven reserves in Nigeria and Algeria (5.22 and 4.5 trillion cu m) are below those of Russia (43.3 trillion cu m), Iran (29.61 trillion cu m), Qatar (25.46 trillion cu m), Turkmenistan (7.94 trillion cu m), the Saudi Arabia (7.57 trillion cu m), and the United Arab Emirates (6.43 trillion cu m), but greater than those of Norway (2.91 trillion cu m) which is one of the key gas-exporting countries. Nevertheless, the levels of natural gas production and consumption in Africa are fairly low. The continent's gas output in 2008 was 214.8 bn cu m or 7% of the world's total (a 4.85 increase compared to 2007). South America was the only continent to produce less natural gas the same year. The 2008 consumption of natural gas in Africa was 94.9 bn cu m or 3.1% of the world's total (a 6.1% increase compared to 2007), which is the lowest figure worldwide.

Over 50% of the natural gas produced in Africa — 115.6 bn cu m - is exported, mostly as LNG (62.18 bn cu m). The share of African countries (Algeria, Nigeria, Egypt, Libya, Equatorial Guinea, and Mozambique) in the global gas supply is 14.2%, but the same figure for LNG is much higher — 27.5%.

Gazprom is mainly oriented towards the European market, and strengthening its positions in Africa should be important to it as a way of diversifying its supplies to Europe. Currently the Russian energy giant faces stiff competition in Africa, mainly from European companies. For example, the African positions of Italy's Eni are stronger than those of Gazprom, though the two companies plan to cooperate in the framework of the South Stream and, consequently, should be able to reach an agreement concerning their other projects. For example, Gazprom and Eni would not even have to attract additional partners to jointly construct the second leg of the pipeline linking Libya and Sicily.

As of today, Russia and North Africa, along with Norway, are Europe's major natural gas suppliers. The dependence on gas import from Russia is widely regarded in the EU as a risk to Europe's energy security. Due to this perception the EU administration is viewing the broadening of Gazprom's operations in Africa with concern, worrying that the advent of the Russian company to the regions south of Europe would allow it to encircle the EU and adopt a more aggressive stance in gas supply negotiations and in pricing disputes in particular. The EU is doing whatever it can to preclude the materialization of the hypothetical scenario.

The reality is more complex, however, and to an extent the EU countries are still divided over the import of natural gas from Russia. Despite the pan-European concern over Russia's tightening grip on the EU fuel market, Germany's BASF AG and E.ON AG have joined Gazprom's Nord Stream, and Italy's Eni - South Stream.

The failure of the attempts to convince Russia to sign the Energy Charter by which the EU would gain an extent of control over Russia's pipeline network made Brussels become more active on the African gas market. In the summer of 2007 the EU signed a fundamentally new gas supply deal with Algeria's Sonotrach, which at the same time declared that its cooperation memorandum with Gazprom would be discontinued. The essence of the new agreement between Algeria and the EU is that gas from the former would be available to all countries of the latter, not just to Spain and France as the countries neighboring the exporter. References to the destination of gas supplies were altogether dropped from the texts of all agreements between Algeria and the EU as were the general reexport-prohibiting provisions which, as it was admitted, hindered the competition.

Besides, Sonotrach will get a share of the revenues from the sales of Algerian gas by European resellers and will be authorized to deliver LNG to Europe by tankers. The measures promote the common EU gas market and seriously lessen Europe's energy dependence on Russia.

Shortly upon the signing of the contract with Sonotrach Brussels unveiled a new initiative concerning the cooperation with Africa – the project of constructing the Trans-Saharan gas pipeline. The 4,128 km pipeline with the 30 bn cu m annual throughput is to link the Sahara to Nigeria and Algeria. The cost of the project is estimated at $13 bn, including $10 bn for the construction of the pipeline and $3 bn - for the construction of gas storage facilities. The pipeline will interface with the north-African network in Algeria, and as the result natural gas will be supplied to Europe across the Mediterranean seabed, Spain, Sicily, and in the future – via Sardinia. Nigeria's gas reserves are estimated at 5.22 trillion cu m, which is enough to supply Europe for a decade. The construction will commence in 2011 and be completed in 2015.

Considering the complexity of the project – Nigeria and Niger areas are mountainous, the Sahara is a zone with a harsh climate, and the hole region is plagued with permanent political instabilities – the total cost estimate appears fairly low, roughly twice below that of South Stream which is supposed to cost $25 bn.

Importantly, the Trans-Saharan pipeline is the project proposed by the EU which will also take the role of its main investor. Europe will hardly let Gazprom buy into it to any considerable extent, though the Russian company is signaling its interest in joining in. Russian President D. Medvedev confirmed Russia's interest in the project during his June 2009 visit to Nigeria, which was stated earlier, in September 2008, during the talks between Gazprom CEO A. Miller and the Nigerian National Petroleum Corporation managing director Abubakar Yar'Adua. At that time the sides agreed to form a joint venture to construct a 360 km pipeline to Nigeria.

Despite the obvious risks, Russia can draw seizable economic and political dividends from the project. On the other hand, currently Gazprom is locked in a whole range of costly projects and quite possibly the investment potential it would be able to commit to the participation in the Trans-Saharan pipeline project is going to be quite limited.

Roman Tomberg is a graduate student at the Center for Energy Studies of the Institute of World Economy and International Relations of the Russian Academy of Science and an expert with the Strategic Culture Foundation