Nigeria-Morocco Gas Pipeline Project Set for Major Development
The Nigeria-Morocco gas pipeline project, an ambitious venture estimated at $25 billion, is on track for an intergovernmental agreement (IGA) to be signed in 2026. This announcement was made by Amina Benkhadra, the Director General of the National Office of Hydrocarbons and Mines (ONHYM), during a conversation with Reuters. Known as the Atlantic Africa Pipeline, this strategic initiative was originally conceptualized over a decade ago and aims to extend approximately 6,900 kilometers, incorporating both offshore and onshore segments. The pipeline is expected to have a maximum capacity of 30 billion cubic meters (Gm³), with 15 Gm³ allocated for Morocco and European exports.
Supported by the Economic Community of West African States (ECOWAS), the project has successfully completed its feasibility studies and preliminary engineering designs, marking a significant milestone in its development. Following the signing of the IGA, a high-level pipeline authority will be established in Nigeria, consisting of ministerial representatives from the 13 involved countries to ensure effective political and regulatory coordination for the project.
Anticipated Economic Impact and Future Developments
In addition, a project company will be formed in Morocco as a joint venture between ONHYM and the Nigerian National Petroleum Company (NNPC) to oversee the execution, financing, and construction phases. Benkhadra emphasized that this massive undertaking is expected to enhance economic integration in West Africa, contributing to increased electricity production and industrial and mining development. Moreover, it will solidify Morocco's position as a vital energy hub linking Africa with Europe.
The initial phases of the project include connecting Morocco to gas fields in Mauritania and Senegal, as well as establishing connections between Ghana and Ivory Coast, before extending to the gas fields in Nigeria. The first gas deliveries from these initial segments are anticipated by 2031. Benkhadra also pointed out that the project does not rely on a single global final investment decision, as each segment is designed as an autonomous system, allowing for incremental value creation from the outset.
As of now, no final financing commitments have been secured, with the financial structure to be led by the project company, which will seek a combination of equity and debt funding. The project's scope and strategic positioning have generated significant interest, highlighting its potential to transform the energy landscape in the region.
As reported by medias24.com.
