Nigeria and Morocco are set to sign a major intergovernmental agreement (IGA) this year for the ambitious $25 billion African Atlantic Gas Pipeline (AAGP) project.
Amina Benkhadra, Director General of Morocco’s National Office of Hydrocarbons and Mines (ONHYM), disclosed this in an interview with Reuters on Monday.
Benkhadra said that following the signing of the IGA, an authority for the pipeline will be established in Nigeria.
The authority will comprise ministerial representatives from the 13 participating countries to provide political and regulatory coordination.
The 6,900-kilometre hybrid offshore-onshore pipeline is designed with a maximum capacity of 30 billion cubic metres (bcm) per year.
This includes 15 bcm dedicated to supplying Morocco and supporting gas exports to Europe.
According to Benkhadra, the Nigerian National Petroleum Company Limited (NNPC) and ONHYM will establish a joint venture project company in Morocco to oversee the execution, financing, and construction phases of the project.
Feasibility studies and front-end engineering design (FEED) have already been completed.
She emphasised that the pipeline will promote economic integration across West Africa by boosting electricity generation, industrial growth, and mining development.
It will also position Morocco as an energy bridge between Africa and Europe.
The project will be developed in phases, with each segment designed as a standalone system to enable early value creation. First gas from the initial phases is expected in 2031.
The initiative, which enjoys the backing of ECOWAS, stems from a 2022 memorandum of understanding signed by Nigeria, Morocco, Senegal, and Mauritania.
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