Algeria and Nigeria, both members of the Organization of Petroleum Exporting Countries, are two of Africa's top energy producers as well as key suppliers to the West. Nigeria is one of the top-five suppliers of crude oil to the United States, and Algeria provides a significant portion of Europe's natural gas. Nigeria has 124 trillion cubic feet of proven natural gas while Algeria has 159.7 trillion cubic feet.

Previous talks about a joint pipeline project fizzled. But a new plan for Africa's economic development and the growing European demand for natural gas are now motivating fresh negotiations.

The recently signed agreement clears the way for the two countries to share confidential information on the project. A feasibility study to determine the pipeline's viability, including production costs, infrastructure requirements and possible routes is already in the works, the Lagos daily The Guardian reported Oct. 1.

The pipeline would move gas from Nigeria's Delta region to the capital, Abuja, then on to the city of Kano where the industrialized north would have access, according to Nigeria's presidential adviser and former OPEC secretary-general Alhaji

Rilwanu Lukman. The route would then cross into the country of Niger, along Nigeria's northern border, and then through the Sahara to connect with Algeria's pipeline grid. From there it would travel onto Europe's burgeoning natural gas market, Alexander's Gas and Oil Connection reported on April 30.

The project is still in its earliest stages and isn't likely to go much farther until world energy prices rise again. And even when the deals are inked, financing and construction will take years.