Uche Cecil Izuora
Nigeria and Morocco are close to signing historic agreement that will allow unhindered progress towards realization of mega gas pipeline project.
Amina Benkhadra, the head of Morocco’s national office of hydrocarbons and mines (ONHYM), says an intergovernmental agreement (IGA) on the planned $25 billion Nigeria-Morocco gas pipeline will be signed this year.
In a report by Reuters on Monday, Benkhadra said that after the intergovernmental agreement, an authority for the pipeline will be established in Nigeria.
Benkhadra said the authority will consist of ministerial representatives from 13 participating countries to provide political and regulatory coordination.
She said the Nigeria-Morocco gas pipeline, also known as the African Atlantic Gas Pipeline (AAGP), is a 6,900-kilometre (km) hybrid offshore-onshore route with a maximum capacity of 30 billion cubic metres (bcm), including 15 bcm, which supplies Morocco and supports exports to Europe.
According to the publication, the pipeline has the backing of the Economic Community of West African States (ECOWAS), and feasibility study and front-end engineering design (FEED) stages have been completed.
Benkhadra said ONHYM and the Nigerian National Petroleum Company (NNPC) will create a project company as a joint venture in Morocco to lead the execution, financing and construction phase.
She added that the pipeline would encourage economic integration across West Africa by expanding electricity generation and facilitating industrial and mining development.
The head of the Agency also said it will help Morocco position itself as an energy bridge between Africa and Europe, as the initial segments of the pipeline would connect the country to gas fields in Mauritania and Senegal, and link Ghana to Cote d’Ivoire further south.
She said the final segment of the project will connect Ghana to Nigeria’s gas fields, adding that the first gas from the initial phases is expected in 2031.
“The project does not rely on a single global final investment decision,” Benkhadra said.
She explained that each segment is designed to be developed as a “standalone system” to allow for early value build-up.
Also, Benkhadra said the project company will mobilise a mix of equity and debt, and lead the financing structure, as no final funding commitments have been secured yet.
“The project is attracting strong interest due to its scale, its phased structure, and its strategic positioning,” Benkhadra added.
In October 2022, NNPC, Morocco, Senegal, and Mauritania signed the Projects Memoranda of Understanding (MoU).
Also, on March 21, the federal government said it has advanced discussions with stakeholders on the proposed $20 billion Trans-Sahara gas pipeline (TSGP) aimed at delivering natural gas to European markets.
The TSGP is a proposed 4,128 km pipeline intended to transport up to 30 billion cubic meters of natural gas annually from Nigeria, through Niger and Algeria, to European markets.