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Officials expect an intergovernmental agreement for a $25 billion Nigeria-Morocco pipeline this year.

The head of Morocco's hydrocarbons & mining agency (ONHYM), said that an intergovernmental agreement on a $25 billion Nigeria-Morocco pipeline would be signed in this year.

Amina Benjamin, an ONHYM representative, told me by email that the project, known as the "African Atlantic Gas Pipeline", was agreed upon a decade earlier. It would run 6,900 km along a hybrid route, offshore and onshore, with a capacity of up to 30 billion cubic meters (bcm). This included 15 bcm for Morocco, to support exports to Europe.

The feasibility study of the pipeline has been completed, as has the front-end engineering design stage (FEED).

Benkhadra stated that following the intergovernmental agreement, a high-level authority will be set up in Nigeria to coordinate the political and regulatory aspects of the pipeline. This will include ministerial representations from each of the participating countries.

She said that a project company would also be created in Morocco, as a joint-venture between ONHYM, and the 'Nigerian National Petroleum Company' (NNPC), to?lead execution, financing, and construction phases.

She said the pipeline would help boost economic integration in West Africa through increased electricity generation, industrial and mining developments, and positioning Morocco as a bridge between Africa, Europe and Asia.

She said that the first segments of the project will connect Mauritania, Senegal and Ghana with gas fields. A second segment will link Ghana and Cote d'Ivoire in further south.

Benkhadra stated that the first gas is expected in '2031.

She said that the project is not dependent on a global investment decision. Each segment will be developed as a "standalone" system to allow for early value building.

She said that no final funding commitments had been made yet. The project company will lead the financing structure, and it is expected to mobilise a mixture of debt and equity.

Benkhadra stated that the project's size, phased structure and strategic location are attracting a lot of interest. Reporting by Ahmed Eljechtimi, Editing by ChizuNomiyama

(source: Reuters)