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Nigeria-Morocco Gas Pipeline Deal Expected This Year: $25 Billion Project

An intergovernmental agreement regarding the $25 billion Nigeria-Morocco gas pipeline is set to be signed this year, representing a significant […]

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An intergovernmental agreement regarding the $25 billion Nigeria-Morocco gas pipeline is set to be signed this year, representing a significant advancement for one of Africa’s most ambitious energy projects. The African Atlantic Gas Pipeline, initially proposed a decade ago, will stretch 6,900 kilometers along a hybrid offshore-onshore route, with a maximum capacity of 30 billion cubic meters per year. Supported by the Economic Community of West African States (ECOWAS), the project includes a dedicated 15 billion cubic meter segment aimed at supplying Morocco and facilitating potential exports to Europe.

Amina Benkhadra, head of Morocco’s hydrocarbons and mining agency (ONHYM), confirmed to Reuters that the pipeline will position Morocco as an energy bridge between Africa and Europe, while also promoting deeper economic integration across West Africa. Following the signing of the intergovernmental agreement, a high authority for the pipeline will be established in Nigeria. This body will consist of ministerial representatives from each of the 13 participating countries, providing essential political and regulatory coordination.

The feasibility study and front-end engineering design (FEED) stages have already been completed, setting the stage for the next phase of the project. A project company will be established in Morocco as a joint venture between ONHYM and Nigeria’s National Petroleum Company (NNPC). This entity will be responsible for overseeing execution, financing, and construction. Although final funding commitments have not yet been secured, the financing structure will be led by the project company, which plans to mobilize a combination of equity and debt.

The pipeline is designed to be developed in phases, with each segment functioning as a “standalone system” to enable early value creation. Initial segments will connect Morocco to gas fields in Mauritania and Senegal, while another segment will link Ghana to Côte d’Ivoire. A final segment will connect Ghana to Nigeria’s gas fields, with the first gas from these initial phases expected in 2031. According to Benkhadra, the project’s scale, phased structure, and strategic positioning are generating significant interest from potential investors and partners. By expanding electricity generation and facilitating industrial and mining development, the pipeline is anticipated to drive economic growth and enhance regional integration across West Africa.

Ifunanya

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