Major Gas Pipeline Agreement Between Nigeria and Morocco
The Nigerian government is poised to formalize an intergovernmental agreement with Morocco for an ambitious $25 billion gas pipeline project, which is expected to be finalized before the year concludes. This significant announcement was made by Amina Benkhadra, head of Morocco’s hydrocarbons and mining agency (ONHYM), as reported by Reuters. The pipeline, known as the African Atlantic Gas Pipeline, will extend approximately 6,900 kilometers, utilizing both offshore and onshore routes, and is designed to transport up to 30 billion cubic meters of gas. Notably, 15 billion cubic meters of this capacity will be allocated for domestic use in Morocco and for export to Europe.
This monumental infrastructure project is set to enhance economic integration throughout West Africa by bolstering electricity generation and supporting industrial and mining development efforts in the region. Furthermore, it positions Morocco as a pivotal energy conduit between Africa and Europe. Upon the signing of the agreement, a high-level authority will be established in Nigeria, comprising ministers from all 13 countries involved in the project, to oversee political and regulatory coordination.
Strategic Importance and Future Phases of the Pipeline
In addition to the political framework, a project company will be formed in Morocco through a joint venture between ONHYM and the Nigerian National Petroleum Company, tasked with managing the execution, financing, and construction phases of the pipeline. Ms. Benkhadra emphasized the project's allure due to its extensive scale, phased development structure, and strategic significance. The initial phase will connect Morocco with gas fields in Mauritania and Senegal, while also linking Ghana to Côte d’Ivoire, culminating in a final segment that will connect Ghana to Nigeria’s extensive gas fields, with completion anticipated by 2031.
Notably, the project is structured to avoid reliance on a singular global final investment decision, allowing each segment to function as an independent system, thereby facilitating early value creation. The Economic Community of West African States (ECOWAS) has also expressed its support for the African Atlantic Gas Pipeline initiative, highlighting the regional collaborative efforts involved. Although the Nigerian government has not yet disclosed specific details regarding the signing, the agreement marks a significant step in the strengthening ties between Nigeria and Morocco, which also includes collaborations in fertilizer production. As Africa’s most populous nation and its largest oil producer, Nigeria continues to play a critical role in the continent’s energy landscape, further emphasized by the presence of the Dangote refinery, the largest oil refinery in Africa, owned by the continent’s wealthiest individual, Aliko Dangote.
As reported by premiumtimesng.com.
