Major Milestone for Morocco-Nigeria Gas Pipeline Project
In a significant development for African energy cooperation, Morocco and Nigeria are poised to sign an intergovernmental agreement (IGA) this year for the ambitious $25 billion gas pipeline project. Amina Benkhadra, the director of Morocco's National Office of Hydrocarbons and Mines (ONHYM), shared this news during an interview with Reuters. The agreement will pave the way for the establishment of a high authority in Nigeria, comprising ministerial representatives from the 13 countries involved in this extensive project, ensuring effective political and regulatory coordination.
Enhancing Economic Integration and Energy Security
As part of the agreement, a joint venture between ONHYM and the Nigerian National Petroleum Company (NNPC) will be created, tasked with overseeing the execution, financing, and construction of the pipeline. According to Benkhadra, this gas pipeline is expected to bolster economic integration across West Africa by supporting electricity production and stimulating industrial and mining development. Furthermore, it aims to position Morocco as a strategic energy bridge between Africa and Europe.
The initial segments of the pipeline will connect Morocco to gas fields in Mauritania and Senegal, while also linking Ghana to Côte d'Ivoire. Ultimately, the pipeline will extend to connect Ghana with Nigeria's gas reserves, with the first gas deliveries anticipated by 2031 from the initial phases of the project. Benkhadra emphasized that the project does not rely solely on a single final investment decision; rather, each segment will be developed as an autonomous system to facilitate value creation.
Although the final financing has yet to be secured, it will be managed by the project company through a combination of equity and debt financing. Benkhadra noted that the project's scale, phased structure, and strategic positioning have generated significant interest among investors. Originally conceived a decade ago, the Atlantic African Gas Pipeline will stretch 6,900 kilometers, combining both offshore and onshore segments, with a maximum capacity of 30 billion cubic meters (bcm), of which 15 bcm will serve Morocco and support exports to Europe. The project, backed by the Economic Community of West African States (ECOWAS), has already completed its feasibility studies and basic engineering design phases (FEED).
As reported by yabiladi.com.
