Strategic Energy Initiative in West Africa
Morocco and Nigeria are poised to enter a significant partnership by signing an intergovernmental agreement (IGA) this year for a monumental gas pipeline project, valued at an impressive $25 billion. Amina Benkhadra, the head of Morocco’s National Office of Hydrocarbons and Mines (ONHYM), disclosed this development in an interview with Reuters. This agreement is anticipated to not only enhance energy ties between the two nations but also foster broader economic integration across West Africa.
Upon formalizing the IGA, a high authority will be established in Nigeria, comprising ministerial representatives from the 13 countries involved in the project. This body will be tasked with ensuring effective political and regulatory coordination, which is crucial for the successful implementation of such a vast undertaking. Additionally, a joint venture will be formed between ONHYM and the Nigerian National Petroleum Company (NNPC) in Morocco, dedicated to supervising the execution, financing, and construction of the pipeline.
Boosting Economic Growth and Energy Supply
According to Benkhadra, the gas pipeline initiative is expected to significantly enhance electricity generation and promote industrial and mining development throughout the region. This project aims to position Morocco as a pivotal energy bridge between Africa and Europe, facilitating not only regional growth but also international energy supply chains. The initial segments of the pipeline will connect Morocco to gas fields in Mauritania and Senegal, extend to Ghana, and link Côte d’Ivoire, ultimately culminating in a connection to Nigeria’s vast gas reserves. The first gas deliveries from these initial phases are projected to commence by the year 2031.
Importantly, Benkhadra emphasized that the project will not rely on a singular global final investment decision. Instead, each segment will be developed as an independent system, allowing for incremental value creation at various stages. While final funding commitments are still pending, the financing strategy will be spearheaded by the project company through a combination of equity and debt. The scale, phased structure, and strategic positioning of the project have already attracted considerable interest from potential investors.
Originally agreed upon a decade ago, the African Atlantic Gas Pipeline is set to stretch an impressive 6,900 kilometers, utilizing a hybrid offshore and onshore route. It will boast a maximum capacity of 30 billion cubic meters (bcm), with 15 bcm allocated for Morocco to support its energy needs and facilitate exports to European markets. Backed by the Economic Community of West African States (ECOWAS), the project has successfully completed its feasibility study and front-end engineering design (FEED) phases, marking a significant step towards realization.
As reported by en.yabiladi.com.
