DistantNews
Nigeria, Morocco to Sign $25 Billion Gas Pipeline Deal
🇳🇬 Nigeria /Economy & Trade

Nigeria, Morocco to Sign $25 Billion Gas Pipeline Deal

From Premium Times · (2d ago) English Positive tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Nigeria and Morocco are set to sign a $25 billion intergovernmental agreement for a new gas pipeline.
  • The African Atlantic Gas Pipeline will be approximately 6,900 km long, with capacity for 30 billion cubic meters of gas annually.
  • The project aims to boost economic integration across West Africa and position Morocco as an energy hub between Africa and Europe.

Nigeria is poised to formalize a landmark $25 billion intergovernmental agreement with Morocco for the ambitious African Atlantic Gas Pipeline project before the end of the year. This significant development, disclosed by Amina Benkhadra, head of Morocco's hydrocarbons and mining agency (ONHYM), signals a major step towards enhancing energy infrastructure and economic cooperation between the two nations.

The new African Atlantic Gas Pipeline will stretch about 6,900 km, using both offshore and onshore routes.

— Amina BenkhadraDescribing the scale and route of the planned gas pipeline.

The pipeline, envisioned to span roughly 6,900 km via both offshore and onshore routes, is projected to transport up to 30 billion cubic meters of gas annually. A substantial portion, 15 billion cubic meters, is earmarked for Morocco's domestic use and for export to Europe, positioning the project as a critical energy conduit.

It is also expected to carry up to 30 billion cubic meters of gas, with 15 billion cubic meters set aside for Morocco and for exports to Europe.

— Amina BenkhadraDetailing the projected capacity and distribution of the gas pipeline.

This initiative is expected to be a catalyst for economic integration throughout West Africa, fostering increased electricity generation and supporting industrial and mining development. Simultaneously, it will bolster Morocco's strategic role as an energy bridge connecting Africa and Europe, a move that aligns with the kingdom's broader energy diversification goals.

The project does not rely on a single global final investment decision.

— Amina BenkhadraHighlighting the project's financial resilience and phased approach.

Following the agreement's signing, a high-level authority comprising ministers from all 13 participating countries will be established in Nigeria to manage political and regulatory aspects. Additionally, a joint venture project company will be formed in Morocco between ONHYM and the Nigerian National Petroleum Company to oversee execution, financing, and construction, underscoring the collaborative nature of this mega-project. The project's phased structure, designed for early value creation, has already attracted considerable interest.

Each segment is designed as a standalone system to enable early value creation.

— Amina BenkhadraExplaining the strategic phased structure of the pipeline project.
DistantNews Editorial

Originally published by Premium Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog