$25bn Gas Pipeline Deal Expected Between Nigeria and Morocco

Morocco and Nigeria are expected to sign an intergovernmental agreement (IGA) for the $25 billion gas pipeline this year, Amina Benkhadra, head of Morocco’s National Office of Hydrocarbons and Mines (ONHYM), told Reuters.

Following the signing of the IGA, a high authority based in Nigeria will be established, bringing together ministerial representatives from the 13 participating countries to ensure political and regulatory coordination.

A joint venture between ONHYM and the Nigerian National Petroleum Company (NNPC) will also be created in Morocco to oversee execution, financing, and construction.

According to Benkhadra, the pipeline is expected to boost economic integration across West Africa by supporting electricity generation and facilitating industrial and mining development, while positioning Morocco as an energy bridge between Africa and Europe.

Initial segments will link Morocco to gas fields in Mauritania and Senegal and connect Ghana to Côte d’Ivoire, before a final stretch links Ghana to Nigeria’s gas reserves. First gas deliveries from the initial phases are expected by 2031.

The project does not rely on a single global final investment decision», Benkhadra said, noting that each segment will be developed as a «standalone system» to allow for early value creation.

While no final funding commitments have yet been secured, financing will be led by the project company through a mix of equity and debt. «The project is attracting strong interest due to its scale, its phased structure, and its strategic positioning», she added.

Agreed a decade ago, the African Atlantic Gas Pipeline will span 6,900 km along a hybrid offshore and onshore route, with a maximum capacity of 30 billion cubic meters (bcm), including 15 bcm to supply Morocco and support exports to Europe.

Backed by the Economic Community of West African States (ECOWAS), the project has completed its feasibility study and front-end engineering design (FEED) phases.