Morocco’s state-controlled natural resources company has unveiled plans to commence raising part of the $25 billion required to construct the Nigeria-Morocco Gas Pipeline. This pipeline will link gas fields in West Africa to the Mediterranean coastline.

The fundraising will be the first by the Office National Des Hydrocarbures & Des Mines, or ONHYM, since it converted into a public limited company in February. Additionally, the firm has exclusive authority over the licensing and development of the North African kingdom’s hydrocarbon and non-phosphate mineral resources.

ONHYM’s major project since the year 2018 has been the development of a 4,300-mile (6,900-kilometer) gas pipeline. This comprised of onshore and offshore components and connecting deposits in Nigeria, Senegal and Mauritania to 10 neighboring African countries. These countries include Morocco. Also, the structure is expected to link to the existing Maghreb-Europe Gas Pipeline that connects Morocco to Spain.

Furthermore, the change in ONHYM’s statutes bolsters its “capacity to structure partnerships and mobilize diversified funding. Also, it enhances its capacity to support large-scale projects both in Morocco and internationally,” the company mentioned in an emailed response to questions. It didn’t provide details on the size, timing of type of fundraising that’s planned.

Algeria Plans to Set Up a Rival Project

On the other hand Algeria has been pushing to develop a rival project across the Sahara Desert to connect Nigerian gas fields to its Europe-bound pipeline while crossing fewer African nations. ONHYM says its pipeline network will boost electricification and access to energy for more countries in the continent.

Significance of the Project

ONHYM’s project aims to become “a structuring step for Euro-African energy security,” it said. “Europe is seeking to secure and diversify its gas supplies. Therefore, the Nigeria-Morocco corridor represents a major opportunity. It will provide access to one of the largest still largely untapped gas reserves.”

Also, Morroco’s gas-transport company OMCO spoke last week on a formal inter-governmental agreement and final investment decision for the pipeline. It revealed that the formal inter-governmental agreement and final investment decision are expected to be concluded this year.

Nigeria-Morocco Gas Pipeline Factsheet

Project Name: African Atlantic Gas Pipeline (AAGP)

Estimated Cost: $25 Billion

Total Length: Approximately 6,900 km (approx. 5,600 km offshore and 1,300 km onshore).

Capacity: Designed to transport 30 billion cubic meters (bcm) of natural gas annually.

Route: Starts in Nigeria and passes through Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, and Mauritania, terminating in Morocco (Tangiers).

Milestones: Feasibility and Front-End Engineering Design (FEED) studies are complete.

Legal Framework: An Intergovernmental Agreement (IGA) is slated for signing in 2026 to formalize the political and regulatory commitments of all participating states.

Governance: A “High Authority” will be established in Nigeria for ministerial oversight, while a joint venture between Morocco’s ONHYM and Nigeria’s NNPC Ltd will manage construction and financing.

First Gas Target: Initial gas flow from the first phases is expected by 2031.

Funding Model: A mix of equity and debt.

Lead Developers: Nigerian National Petroleum Company (NNPC) and Office National des Hydrocarbures et des Mines (ONHYM).

Regional Backing: Strongly supported by the Economic Community of West African States (ECOWAS).