Russia swaps Libya debt for deals

Russia has agreed to cancel $4.5bn (£2.3bn) of Libyan debt in exchange for major contracts for Russian firms. The announcement came during a visit to Tripoli on Thursday by the Russian President, Vladimir Putin. Libya was a big importer of Soviet weaponry during the Cold War, when it accumulated large debts.

The two countries signed deals on energy co-operation, military assistance and construction of a 500km (310-mile) railway line in Libya.

Russia's state gas monopoly Gazprom plans large-scale exploration and production projects with Libya's national energy company. They will include liquefied natural gas installations and gas-fired electricity plants in Libya.
Russia will provide the technology for Libya to build a major rail link between Sirte and Benghazi. Construction is expected to take four years.

Gazprom is also holding preliminary talks with Nigeria about a multibillion-dollar project to deliver Nigerian gas to Europe via a pipeline across the Sahara. The project is costed at $10bn for the pipeline and $3bn for other installations, delivering up to 30bn cubic metres a year of gas to Europe. The 4,128km (2,580-mile) pipeline from Nigeria will cross Niger and Algeria. Mr Putin said Libya "is orientated towards the most active co-operation with Russia in all areas".

President Putin is now in Sardinia for talks with Italian Prime Minister-elect Silvio Berlusconi. The Italian firm Eni is also involved in big energy projects in Libya and already has a close partnership with Gazprom.

Algeria and Nigeria seek Europe's support for trans-Saharan gas pipeline

Algeria and Nigeria sought European support Monday as they laid out plans for a trans-Saharan gas pipeline that could supply the EU with 6 percent of its future gas needs. Europe currently depends on Russia for up to two-fifths of its gas and is seeking new sources and new routes as it worries about a growing reliance on oil and gas imports.

Algerian and Nigerian state-owned gas companies Sonatrach and NNPC want to build a US$10 billion (€7.36 billion) pipeline to bring another 20 billion to 30 billion cubic meters of gas to European consumers — mostly in Spain and Italy — starting as early as 2015.
But the European Union's energy chief, Andris Piebalgs, was reluctant to promise much beyond warm words for the project, saying it was possible the EU could allocate funding — but money could also come from the private sector. "We could encourage European financial institutions to look toward the project," he said.

Algeria, Nigeria and their neighbor Niger promoted the event in Brussels to seek future customers and investors. Algeria and Nigeria currently provide western Africa with gas and turn some into easier-to-transport liquefied natural gas. But they are also keen to sell to wealthy European markets if they can get the project up and running.

The 4,300-kilometer trans-Saharan gas pipeline would run from southern Nigeria, through its northern neighbor Niger to Algeria and then under the Mediterranean Sea to Europe. Plans are at an early stage following viability studies.

IHT