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

An intergovernmental agreement on the $25 billion Nigeria-Morocco gas pipeline is set to be signed this year, marking a significant step forward for one of Africa’s most ambitious energy projects. The African Atlantic Gas Pipeline, first proposed a decade ago, will span 6,900 kilometres along a hybrid offshore-onshore route, with a maximum capacity of 30 billion cubic metres per year.

The project, backed by the Economic Community of West African States (ECOWAS), includes a dedicated 15 bcm segment to supply Morocco and support potential exports to Europe. Amina Benkhadra, head of Morocco’s hydrocarbons and mining agency (ONHYM), confirmed to Reuters that the pipeline will help position Morocco as an energy bridge between Africa and Europe while fostering 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 bring together ministerial representatives from each of the 13 participating countries to provide political and regulatory coordination. The feasibility study and front-end engineering design (FEED) stages have already been completed, paving the way for the next phase.

A project company will be created in Morocco as a joint venture between ONHYM and Nigeria’s National Petroleum Company (NNPC). This entity will oversee execution, financing, and construction. While no final funding commitments have been secured yet, the financing structure will be led by the project company, which plans to mobilise a mix of equity and debt.

The pipeline is designed to be developed in phases, with each segment functioning as a “standalone system” to allow for early value creation. Initial segments will connect Morocco to gas fields in Mauritania and Senegal, while another will link Ghana to CĂ´te d’Ivoire. A final segment will connect Ghana to Nigeria’s gas fields. First gas from the initial phases is expected in 2031.

According to Benkhadra, the project’s scale, phased structure, and strategic positioning are attracting strong interest from potential investors and partners. By expanding electricity generation and facilitating industrial and mining development, the pipeline is expected to spur economic growth and regional integration across West Africa.

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