EU sees security in Sahara gas pipeline - Piebalgs

BRUSSELS, Sept 9 (Reuters) - A giant gas pipeline carrying Nigerian gas north across the Sahara desert could help the European Union diversify its energy sources, the EU's energy commissioner said on Tuesday.

The EU relies on Russia for about 40 percent of its gas and a third of its oil, but it has been seeking to reduce that heavy dependency since disputes between Russia and transit states like Ukraine highlighted the frailty of EU energy supply.

Friction over Russia's invasion of Georgia last month has pushed energy security further towards the top of the bloc's agenda.

EU Energy Commissioner Andris Piebalgs told Reuters he was deeply interested in plans to develop the 4,300 kilometre Trans-Saharan Gas Pipeline from Nigeria through Niger and Algeria en route to the Mediterranean.

'Nigeria is already very important for our security of supply -- 20 percent of their oil and 80 percent of their gas goes to Europe,' Piebalgs said by phone from Nigeria, ahead of discussions about coordinating on energy projects and finding peace in the restive Niger Delta.

Nigerian gas is currently shipped to Europe as liquefied LNG, but a pipeline is seen improving security and also the prospects of transit regions in Africa, thereby reducing the flood of migrants to Europe.

'The development of a trans-Saharan project with 20 billion cubic metres a year that might arrive to Europe by 2015 and increase the security of supply of Nigeria itself and the countries it crosses makes it a very interesting project for Nigeria and Europe,' said Piebalgs.

Nigeria has the world's seventh-largest proven gas reserves, but has been unable to develop its gas industry to anywhere near its full potential because of a lack of funds and regulation.

The EU is not alone in courting Nigeria for its oil and gas reserves. Last week, Russian gas giant Gazprom signed an oil and gas exploration agreement there, planning to develop LNG exports to north America.

Nigeria hopes to double crude production to 4 million barrels per day by 2010, although militant attacks on pipelines and funding problems have thrown those plans into doubt.

But Piebalgs said the goal, if achieved, could help further soothe oil prices, now at around $104 a barrel after hitting an all-time high of $147.3 in July.

'Plans to increase production to 4 million barrels per day in the coming years could have a very positive impact to keep global oil markets better supplied,' he said.