Nigeria, Morocco advance $25bn transcontinental gas pipeline deal

Nigeria and Morocco are set to sign a key intergovernmental agreement this year to advance the $25bn African Atlantic Gas Pipeline project, marking a major step toward realising the transcontinental initiative.

According to a Reuters report on Monday, the agreement will formalise political and regulatory commitments for the pipeline, which is designed to transport natural gas from Nigeria across West Africa to Morocco and onward to Europe.

The 6,900-kilometre project, known as the African Atlantic Gas Pipeline, is expected to strengthen regional energy integration and boost export capacity.

Director-General of the Office National des Hydrocarbures et des Mines, Amina Benkhadra, said the agreement would enhance institutional coordination among participating countries.

“An intergovernmental agreement… will be signed this year,” she said, adding that a joint regulatory authority would be established in Nigeria involving representatives from the 13 participating countries.

Project structure

The pipeline, first conceived about a decade ago, has progressed through feasibility studies and front-end engineering design, reflecting renewed momentum despite global financing challenges.

Mrs Benkhadra explained that the project would be executed in phases, allowing segments to become operational independently and deliver early economic benefits.

“The project does not rely on a single global final investment decision… each segment is designed to be developed as a standalone system,” she said.

The pipeline is expected to have a capacity of 30 billion cubic metres annually, with about half allocated for domestic use in Morocco and exports to Europe.

Implementation plan

A joint venture between the Nigerian National Petroleum Company Limited and Morocco’s hydrocarbons agency will establish a project company to oversee execution, financing, and construction.

While investor interest remains strong, no final funding commitments have been secured, with financing expected to combine equity and debt.

Regional impact

The project, backed by the Economic Community of West African States, is expected to boost electricity generation, industrialization, and economic integration across West Africa.

Initial phases will link Morocco to gas fields in Mauritania and Senegal, while other segments will connect Ghana to Côte d’Ivoire and eventually to Nigeria’s gas reserves.

First gas from the project is projected by 2031.

Strategic significance

The pipeline is seen as a strategic alternative for global gas supply, particularly as Europe seeks to diversify energy sources amid shifting geopolitical dynamics.

For Nigeria, the initiative offers an opportunity to monetise its vast gas reserves, increase non-oil revenue, and strengthen its regional influence.

The planned agreement signals renewed political will to deliver one of Africa’s most ambitious energy infrastructure projects, with the potential to reshape regional energy trade, enhance energy security, and position West Africa as a key player in the global gas market.