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Penspen wins pipeline contract

28 March 2025

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UK-based engineering consultant Penspen has been awarded a contract to provide a feasibility study update for the Trans-Saharan Gas Pipeline (TSGP), according to a statement issued by the company.

The pipeline project has been estimated to be worth $13bn-$25bn.

The company said that the pipeline is “a landmark infrastructure project with the potential to transform African energy dynamics, enhance economic integration and bolster global energy security”.

Spanning more than 4,000 kilometres from Nigeria to Algeria, the pipeline is jointly sponsored by Nigerian National Petroleum Company, Algeria’s Sonatrach and Niger’s Sonidep.

The planned project will facilitate the transportation of up to 30 billion cubic metres of natural gas across West and North Africa annually, ultimately linking to European markets.

Penspen said: “This ambitious initiative is poised to unlock new economic opportunities for transit countries, foster regional cooperation and support Africa’s growing energy demand.”

The TSGP project was initiated by the collaborative efforts of Nigeria and Algeria in 2002, with Niger admitted in 2008 as a co-sponsor.

In 2006, Penspen delivered the original feasibility study for the project, finding the pipeline to be technically and economically feasible and reliable.

Penspen has been engaged to re-validate and update the feasibility study of the pipeline, considering earlier route options, according to the statement.

Commenting on the award of the contract to update the original study, Arun Behl, Penspen’s sales and marketing director for the Middle East and Africa, said: “The award of the feasibility study of this high-impact project underscores Penspen’s expertise in large-scale energy infrastructure development and our commitment to advancing strategic initiatives that drive economic growth and regional stability.

“We are proud to have been selected to support the next phase of this transformative project, leveraging our extensive experience in cross-country pipeline engineering and development to deliver a sustainable and efficient energy solution.”

The project will be delivered from Penspen’s offices in the UK and Middle East, with support from fellow Sidara brand Dar, which is established and active in the three countries.

The study will cover analysis of the regional gas market. It will also include environmental and social evaluations, as well as economic and financial analysis, including cost estimation, legislation and consultation reviews, risk analysis and the development of the scope of work for the front-end engineering and design work.

In its statement, Penspen said: “By harnessing the vast gas reserves of Nigeria and neighboring producers, the TSGP aims to significantly contribute to Africa’s energy independence while also serving as a critical supply route for European nations seeking to diversify their energy sources.”

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Wil Crisp

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