Ukraine

• Ukraine and Russia continue to accuse each other of recklessly striking targets near the Zaporizhzhia nuclear complex, and the strikes are getting closer to parts of the plant where radioactive material is stored. The UN called for the area to be declared a demilitarized zone.
• U.S. officials think Russia may not be able to capture all of Donetsk this year, due to crippling troop casualty rates of around 500 wounded or killed per day. It doesn't help that Russia has had to redeploy some of its dwindling forces to the south to engage Ukrainian counteroffensives.
• Russia has installed cages in a theater in Mariupol, which the NYT said seemed like preparations for show trials of Ukrainian prisoners of war that they'd bring back to newly-captured Mariupol for the spectacle.

Russia

• Russia's Foreign Ministry confirmed that prisoner swap negotiations have begun in a designated channel Presidents Biden and Putin agreed on last year. The U.S. has reportedly offered to trade convicted arms dealer Viktor Bout for WNBA star Brittney Griner and ex-Marine Paul Whelan.

Afghanistan

• Islamic State claimed a suicide bombing that killed Sheikh Rahimullah Haqqani, a prominent Taliban cleric, yesterday - after two unsuccessful attempts on his life in recent years.
• Haqqani - no relation to the Haqqani Network or Taliban Interior Minister Sirajuddin Haqqani - was something of a liberal feminist by Taliban standards: he was a vocal advocate of women's education (although with a patronizing justification that there should be female doctors to treat female patients).

Mexico

• Violence flared in Jalisco state after security forces confronted two drug gangs and arrested some members of each. The gangs then rampaged parts of Guanajuato in response, forcing local residents to shelter in place.

U.S.

• U.S. inflation slowed slightly in July, with the year-over-year rate dropping from 9.1% in June to 8.5% in July. Markets rose on the new data, with investors hoping the Federal Reserve will slow its interest rate hikes.
• It was a drop in energy prices that pulled the overall inflation rate lower: U.S. gas prices fell below $4 for the first time since March. On the other hand, grocery prices rose another 1.3% in July, for a year-on-year rise of 13.1%. That's the largest one-year increase in home food prices since 1979.

Other News

• DW had a good explainer on efforts to revive the Trans-Saharan Gas Pipeline project, which would connect Nigerian oil supplies with oil transport infrastructure in Algeria, ultimately linking to Europe. See below.

African countries seek to revive Trans-Saharan Gas Pipeline dream (DW)
Nigeria, Algeria and Niger are renewing efforts to implement a decades-old plan, as they look to benefit from EU efforts to wean itself off Russian gas. But is there enough political will and funding for the project?

The Trans-Saharan Gas Pipeline (TSGP) as the trilateral project with a decadeslong history is officially called recently saw a fresh attempt at a revival when representatives from Algeria, Niger and Nigeria met in Niamey, Niger, in June. In July, the energy ministers of the three countries signed a memorandum of understanding (MoU) and agreed to set up a task force for the project with the aim of updating an existing feasibility study.

The idea to pipe gas across the Sahara to Europe was first mooted more than 40 years ago. In 2009, an agreement was signed by the three gas-rich countries, but progress has stalled since then.

TSGP, which is also called the NIGAL pipeline, may now move closer to becoming reality as Europe is attempting to cut its strong dependency on Russian gas in the wake of economic sanctions against Moscow over the Ukraine war.

"It [the pipeline] should allow Europe to diversify its sources of natural gas supply but also allow several African states to access this high-value energy source," said a joint statement issued in June.
Enough political will?
Once the $13 billion (€12.8 billion) pipeline is complete, it could transport up to 30 billion cubic meters (1 trillion cubic feet) of gas annually from Nigeria, in West Africa, north through Niger and on to Algeria. From there, TSGP gas is planned to be pumped through the undersea Trans-Mediterranean Pipeline to Europe or loaded onto liquefied natural gas (LNG) tankers for export.

Energy experts, however, doubt that African gas will flow into Europe any time soon, with some saying the pipeline won't be built in the next 10 years. Isaac Botti, a Nigerian public finance specialist from Abuja, believes a lack of political will could be the biggest challenge for the project.

"I feel this is just a paper commitment. Every real commitment should be backed by actions. So far, we are not seeing commensurate efforts on the part of the Nigerian government," he told DW. Botti also noted that Nigeria and Algeria will be the major suppliers of the gas, but everything would "boil down to the political will of the Nigerian government to ensure that the project kick-starts."
Nigeria — wealth for a few
TSGP will have a total length of about 4,128 kilometers (2,565 miles) of which 1,037 kilometers will pass through Nigeria, 841 kilometers through Niger and roughly 2,310 kilometers through Algeria. According to plans, the pipeline will also serve regional and local energy markets along the route.

Most of the 30 billion cubic meters of gas will come from the Niger Delta — a coastal region on the Atlantic Ocean belonging to Nigeria and boasting Africa's biggest oil reserves. Apart from its crude wealth, the delta is rich in natural-gas deposits that have already made Nigeria the continent's second-largest gas exporter after Algeria.

"Nigeria has one of the largest gas deposits in the world … about 200 trillion cubic feet, with a capacity of producing 3 trillion cubic feet a year. Looking at the monetary value of this deposit we are talking about $800 billion that could be earned from this project," said Botti.

Despite its huge resource wealth, the Nigerian population is suffering from poverty and political instability. In the Muslim-dominated north of the country, Islamic fundamentalists from the Boko Haram terrorist group are waging a civil war against central government authorities. Experts already say the worsening Nigerian security situation could ensure the pipeline remains a pipe dream.

Another uncertainty that could thwart international funding for the project is climate change and plans in wealthy Western economies to cut their consumption of fossil fuels. The EU, for example, is planning to reduce its carbon footprint by at least 55% until 2030, beginning with phasing out coal and oil, but also cutting natural-gas use. The fossil fuel is to be replaced with green hydrogen generated from renewable forms of energy.

Gas profits for development
Under a revised budget plan for 2022, the Nigerian government projects to spend a total of 17.32 trillion naira (€40 billion, $41 billion), about 18% more than in the previous year. The budget deficit is expected to increase to 7.35 trillion naira representing 3.99% of the country's gross domestic product (GDP).

Despite higher oil prices, Nigeria's oil sector underperformed in the first quarter due to "significant production shortfalls," and the government said it needed to borrow from financial markets to cover its funding targets, especially in infrastructure development. In the quarter, Nigeria's public debt rose to 41.6 trillion naira from 39.56 trillion naira at the end of December 2021, putting enormous pressure on debt servicing.

Botti said Nigeria's budget shortfall is "serious," and he criticized that investment expenditure was still "concentrated on the oil sector rather than the gas sector."

Moreover, political differences continue to hamper the gas pipeline project and prevent Nigeria from benefiting from the global shift to renewable energies, he said. A new government after the next presidential election in 2023 would hopefully improve the situation, he added.

Algeria's growing importance
While Botti remains skeptical about TSGP, former Algerian diplomat and Middle East expert Brahim Kas sees "serious" political efforts in all of the three African countries to push ahead with the project.

"It's definitely stronger than in the early 2000s because the geopolitical gas crisis is much more acute and will last for a longer period of time," he told DW.

Especially Algeria would now have both the technical and financial ability to build the pipeline as rising oil and gas prices have given the country "enormous power to act," Kas said.

He cited the TransMed Pipeline between Algeria, Tunisia and Italy as an example of the North African country's growing energy importance. "Italy and Algeria have just signed an agreement for boosting gas supplies this year and next year. This ought to bring the TransMed close to maximum capacity," he said.

Emerging capacity constraints in North Africa could even bring the shelved GALSI pipeline back into play, he believes. Also known as the Gasdotto Algeria–Sardegna Italia (GALSI), the pipeline would link Algeria with Italy via Sardinia and is presumed canceled due to halted construction activities.

Kas said Algeria would be able to complete the pipeline on its own if it were to get assurances from European countries for long-term supplies. Without that, Algeria wouldn't build GALSI, he said, because the Europeans could say one day "we no longer need Africa's gas."