Nigeria, Morocco advance $25bn transcontinental gas pipeline deal

Nigeria and Morocco are poised to make significant strides on the ambitious African Atlantic Gas Pipeline, a project envisioned to reshape energy dynamics across the continent and into Europe. The impending signing of an intergovernmental agreement this year is a critical step, formalizing the political and regulatory commitments necessary for this $25 billion endeavor.

“

An intergovernmental agreement on a planned $25 billion Nigeria-Morocco gas pipeline will be signed this year, the head of Morocco’s hydrocarbons and mining agency said.

This 6,900-kilometer pipeline is designed not merely as an infrastructure project but as a strategic energy bridge. It aims to transport natural gas from Nigeria's reserves, traversing West Africa to reach Morocco, and subsequently extending to European markets. The agreement will pave the way for a high authority in Nigeria, comprising ministerial representatives from 13 participating nations, to ensure robust political and regulatory coordination.

“

Following the intergovernmental agreement, a high authority for the pipeline will be established in Nigeria, bringing together ministerial representatives from each of the 13 participating countries to provide political and regulatory coordination.

The project, conceived a decade ago, has progressed through feasibility and engineering stages, demonstrating resilience amidst global financing uncertainties. Its phased development strategy is particularly noteworthy, allowing for early economic returns without waiting for a singular final investment decision. This approach ensures that segments of the pipeline can become operational and generate value independently, maximizing the project's economic impact over time.

“

The project does not rely on a single global final investment decision. Each segment is designed to be developed as a standalone system to allow for early value build-up.