Nigeria, Morocco to sign $25bn gas pipeline agreement in 2026, create joint venture to lead execution

Morocco’s national office of hydrocarbons and mines has said an intergovernmental agreement on the planned $25 billion Nigeria-Morocco gas pipeline will be signed this year, marking a significant step forward for one of Africa’s most ambitious energy infrastructure projects.

Amina Benkhadra, head of ONHYM, told Reuters on Monday that following the signing, a pipeline authority consisting of ministerial representatives from 13 participating countries will be established in Nigeria to provide political and regulatory coordination. ONHYM and the Nigerian National Petroleum Company will also create a joint venture in Morocco to lead the execution, financing, and construction phases of the project.

The African Atlantic Gas Pipeline, as it is formally known, is a 6,900-kilometre hybrid offshore-onshore route with a maximum capacity of 30 billion cubic metres per year, including 15 billion cubic metres to supply Morocco and support exports to Europe. The pipeline has the backing of the Economic Community of West African States, and both the feasibility study and front-end engineering design stages have been completed.

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How the project is structured

Benkhadra said the pipeline would not rely on a single global final investment decision. Instead, each segment is designed as a standalone system to allow for early value generation. The initial phases would connect Morocco to gas fields in Mauritania and Senegal, while further south, Ghana would be linked to Côte d’Ivoire. The final segment would connect Ghana to Nigeria’s gas fields. First gas from the initial phases is expected in 2031.

No final funding commitments have been secured, though Benkhadra said the project company would mobilise a mix of equity and debt to lead the financing structure. “The project is attracting strong interest due to its scale, its phased structure, and its strategic positioning,” she said.

Beyond energy supply, Benkhadra said the pipeline would drive economic integration across West Africa by expanding electricity generation and supporting industrial and mining development, while positioning Morocco as an energy bridge between Africa and Europe.