Nigeria is on the verge of formalizing a landmark intergovernmental agreement with Morocco concerning a substantial gas pipeline project valued at $25 billion. The agreement is anticipated to be officially signed before the close of the current year.
Amina Benkhadra, the head of Morocco’s hydrocarbons and mining agency (ONHYM), confirmed this development on Monday, according to reports from Reuters.
The proposed African Atlantic Gas Pipeline project is slated to traverse approximately 6,900 kilometers, incorporating both offshore and onshore segments. Projections indicate that the pipeline will have the capacity to transport up to 30 billion cubic meters of gas annually. Of this volume, 15 billion cubic meters are earmarked for Morocco's domestic use, with the remainder designated for export to European markets.
This ambitious pipeline initiative is expected to foster greater economic integration throughout West Africa. Its completion could lead to enhanced electricity generation capabilities and provide crucial support for industrial and mining sector development within the region. Furthermore, the project aims to solidify Morocco's position as a vital energy conduit connecting the African continent with Europe.
Upon the formal signing of the agreement, a high-level authority will be established in Nigeria. This body will comprise ministers from all 13 participating nations and will be responsible for the coordination of political and regulatory aspects of the project.
In parallel, a dedicated project company is set to be established in Morocco. This joint venture between ONHYM and Nigeria's National Petroleum Company (NNPC) will be tasked with overseeing the execution, financing, and construction phases of the pipeline.
Ms. Benkhadra highlighted that the project is generating considerable interest due to its extensive scale, its carefully structured phased approach, and its strategic significance.
Regarding the phased implementation, she elaborated that the initial phase will connect Morocco to gas fields located in Mauritania and Senegal. It will also link Ghana to Côte d’Ivoire, before a subsequent segment extends from Ghana to Nigeria's gas reserves.
This initial phase is projected for completion by 2031, according to Benkhadra.
She emphasized that the project's design does not hinge on a single global final investment decision, allowing for flexibility and progressive development.
Moreover, each segment is designed to function as an independent system, facilitating the realization of value at earlier stages of the project.
The Economic Community of West African States (ECOWAS), a key regional bloc, has also expressed its support for the new African Atlantic Gas Pipeline project.
While details regarding the official signing ceremony remain undisclosed by the Nigerian government at this time, the agreement signifies a deepening relationship between Nigeria and Morocco, building upon existing collaborations such as those in fertilizer production.
Nigeria, recognized as Africa's most populous nation, also holds the distinction of being the continent's leading oil producer. The country is home to the Dangote Refinery, the largest refinery in Africa, owned by Africa's wealthiest individual, Aliko Dangote.
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