Nigeria-Morocco $25bn gas pipeline project advances with joint venture

Nigeria and Morocco are preparing to take a major step forward on their ambitious $25 billion gas pipeline project, with plans to sign a key intergovernmental agreement (IGA) in 2026 and establish a joint venture to drive execution.

According to Amina Benkhadra, head of Morocco’s hydrocarbons agency, the agreement will unlock the next phase of the Nigeria–Morocco Gas Pipeline, also known as the African Atlantic Gas Pipeline (AAGP).

A 6,900km bet on regional energy integration

The proposed pipeline spans roughly 6,900 kilometres, combining offshore and onshore routes across 13 countries in West Africa. At full capacity, it is expected to transport up to 30 billion cubic metres of gas annually, with about half earmarked for regional use and the rest potentially exported to Europe.

The project is backed by the Economic Community of West African States (ECOWAS), positioning it as one of Africa’s most ambitious cross-border energy infrastructure plays.

Beyond exports, the pipeline is expected to boost electricity generation, support industrial growth, and deepen economic integration across participating countries.

Joint venture to drive execution

To move from planning to execution, Morocco’s ONHYM and the Nigerian National Petroleum Company (NNPC) plan to establish a joint venture company based in Morocco.

This entity will oversee financing, construction, and overall delivery of the project, a critical step given the scale and complexity involved.

Rather than waiting for a single final investment decision, the pipeline will be developed in phases. Each segment is designed to function independently, allowing parts of the project to come online earlier and begin generating value.

Big ambition, funding questions remain

While feasibility studies and engineering designs have been completed, financing is still a major hurdle. The project is expected to rely on a mix of equity and debt, but no final funding commitments have been secured.

Still, interest is reportedly growing due to the pipeline’s scale and strategic positioning, particularly as Europe looks to diversify energy sources.

If timelines hold, first gas from initial phases could flow by 2031, marking a significant shift in how African gas is produced, transported, and traded globally.

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