The Nigerian government will sign a formal intergovernmental agreement (IGA) with Morocco for a $25 billion gas pipeline before the end of the year.

The head of Morocco’s hydrocarbons and mining agency (ONHYM), Amina Benkhadra, disclosed this on Monday, Reuters reports.

She said the new African Atlantic Gas Pipeline will stretch about 6,900 km, using both offshore and onshore routes, Reuters reported.

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.

The pipeline is expected to boost economic integration across West Africa by increasing electricity generation and supporting industrial and mining development.

At the same time, the project will also help Morocco position itself as an energy link between Africa and Europe.

After the agreement is signed, a high-level authority for the pipeline will be established in Nigeria, including ministers from all 13 participating countries, to coordinate political and regulatory matters.

According to Ms Benkhadra, a project company will also be set up in Morocco as a joint venture between ONHYM and the Nigerian National Petroleum Company to oversee execution, financing, and construction.

She said the project is attracting strong interest due to its scale, phased structure, and strategic importance.

On the phased structure, she explained that the first phase will link Morocco to gas fields in Mauritania and Senegal, and connect Ghana to Côte d’Ivoire, before a final section links Ghana to Nigeria’s gas fields.

This phase is expected in 2031, she said.

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“The project does not rely on a single global final investment decision,” she noted.

She also said each segment is designed as a standalone system to enable early value creation.

The West African regional bloc, Economic Community of West African States (ECOWAS), is also backing the new African Atlantic Gas Pipeline project.

PREMIUM TIMES reports that the Nigerian government has yet to provide details of the signing of the agreement. But the agreement continues the growing relationship between Nigeria and Morocco, including one on fertiliser production.

Nigeria, Africa’s most populous country, is also the continent’s largest oil producer. It also houses the largest oil refinery on the continent: the Dangote refinery, owned by Africa’s richest man, Aliko Dangote.

Nigeria to sign $25 billion gas pipeline deal with Morocco

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