In a significant development for Africa’s energy landscape, Morocco’s President of the Hydrocarbons and Mining Agency (ONHYM), Amina Benkhadra, revealed that Morocco and Nigeria are poised to finalize an intergovernmental agreement for a $25 billion gas pipeline project. The African Atlantic Gas Pipeline, or Nigeria-Morocco pipeline, is set to not only supply Morocco with much-needed energy but also facilitate gas exports to Europe, Benkhadra informed Reuters.
As part of the agreement, a high — level committee will be established in Nigeria. This committee will gather ministerial representatives from the 13 participating countries to ensure political and regulatory coordination, Benkhadra outlined. The project, a joint venture between ONHYM and the Nigerian National Petroleum Company (NNPC), will see Morocco and Nigeria take a leading role in overseeing the financing, construction, and implementation phases.
Benkhadra highlighted the project’s strategic importance, noting its potential to foster economic integration across West Africa and bolster Morocco’s energy sovereignty. Furthermore, the pipeline is envisioned as a bridge connecting Africa and Europe, with initial phases linking Morocco to gas fields in Mauritania and Senegal, as well as Ghana to Cote d’Ivoire, eventually extending to Nigeria’s gas fields.
Despite the project’s ambitious scope, Benkhadra cautioned that funding commitments are yet to be secured. The project company, which will spearhead the financing structure, is expected to mobilize a combination of equity and debt to finance the venture. The pipeline’s strategic positioning has, however, garnered considerable interest, she acknowledged.
In a speech in 2022, King Mohammed VI of Morocco described the gas pipeline as more than a bilateral project between Morocco and Nigeria. It is a cornerstone for African economic integration and co-development, he stated, emphasizing its significance for present and future generations. The pipeline is part of a vast 6,900-kilometer project that will span 13 countries along the Atlantic coast, with the goal of benefiting over 340 million inhabitants.
The project’s timing is particularly crucial in the context of the ongoing Middle East war, which has disrupted global energy markets. In Morocco, the project is also seen as a response to socio-economic challenges exacerbated by high living costs, including those affecting the energy sector.
Source: moroccoworldnews
Original author: Safaa Kasraoui
