January 08, 2008	Tuesday	Zilhaj 28, 1428

MOSCOW, Jan 7: Russian gas export monopoly Gazprom confirmed on Monday it is in talks with the Nigerian government to develop the African country’s vast natural gas reserves.

“They (Nigeria and Gazprom) have had or are having discussions about opportunities for Gazprom’s participation in Africa’s gas market,” a Gazprom spokeswoman said, declining to name an investment figure.

“In terms of sub-Saharan Africa, Nigeria is the key place,” she added.

The Nigerian government previously told Reuters Gazprom would spend between $1 billion and $2.5 billion developing the resource-rich country’s gas sector, and has made visits to the African country’s federal government.

Gazprom, which supplies Europe with a quarter of its gas needs, has consistently said it is interested in business opportunities in Africa.

Analysts say Gazprom would be increasingly willing to buy gas in view of stagnant output at its own fields and uncertainty over gas purchases from Central Asia.

“With construction of several LNG export facilities and the West Africa Gas Pipeline, Nigeria is beginning to realise its gas development potential, and Gazprom is keen to join in,” consultants Global Insight said in a statement.

Global Insight estimates Nigeria’s annual liquified natural gas (LNG) capacity to jump up to 70 billion cubic metres (bcm) by 2011, up from 30 bcm in 2008.

Earlier this year, the International Monetary Fund estimated GDP growth for Nigeria, which is sub-Saharan Africa’s second-largest economy after South Africa, at 8 per cent in 2008.—Reuters