Nigeria had in 2023 declared the “decade of gas” and set its sights on becoming a major supplier to Europe as the continent seeks alternatives to Russian fuel.
However, insufficient deepwater gas projects and export infrastructure limited its ability to capitalise on the opportunity.
Hopes initially rested on the $13 billion Trans-Saharan gas pipeline, stretching from Nigeria to Algeria through Niger but relations between Nigeria and Niger froze after a July 2023 coup in the latter, prompting regional sanctions and jeopardising the project’s viability.
With the Trans-Saharan pipeline facing an uncertain future, Nigeria is now focusing on the Nigeria-Morocco Gas Pipeline, a 3 billion cubic feet per day conduit traversing 13 West African countries.
Talks in January between Nigerian and Moroccan officials aimed to expedite the project’s final investment decision. Both sides emphasised the strategic importance for their nations and the continent, highlighting the potential to alleviate energy poverty and boost regional cooperation.
The pipeline proposal builds upon a 2017 agreement and a 2022 MoU. It would connect to the existing West African Gas Pipeline and terminate in Morocco with a spur to Spain. While all participating nations have expressed interest, analysts caution that financing and other hurdles remain.
“This recent announcement is likely an attempt to highlight government efforts, particularly concerning gas,” said Ida Hockerfelt, a senior analyst at S&P Global. “However, there are still a number of issues remaining to be solved, not least relating to financing.”
Early estimates put the cost at $25 billion, and analysts point to years of work ahead, if the project materialises. The urgency stems from Nigeria’s struggles to meet Europe’s growing gas demand amid declining oil production due to underinvestment and theft.
With North African countries like Algeria stepping up gas exports to Europe, Nigeria hopes to overcome obstacles and establish itself as a key player in the continent’s evolving energy landscape.
High Level Discussion
King Mohammed VI of Morocco extended an invitation during a phone call with President Bola Tinubu, according to Morocco World News.
A statement from the royal palace said the phone call focused on the development of bilateral relations between the two countries.
The discussion also covered the African-Atlantic Gas Pipeline Nigeria-Morocco project; a structuring project that will be a strategic lever for regional integration and economic and social development for all West African countries.
Initiated first by King Mohammed VI and former Nigerian President Muhammadu Buhari in 2016, the pipeline aims to promote regional integration and reinforce Africa’s energy security.
Rabat – Morocco is set to host over 1,600 kilometers of the project, which is 5,600 kilometers long in total.
King Mohammed VI has frequently emphasised the importance of the project, reiterating Morocco’s commitment to the pipeline project with Nigeria.
In November 2023, King Mohammed VI stressed the potential benefits that the pipeline could bring not only to Africa but also to Europe.
The monarch made his remarks during a speech commemorating the anniversary of the Green March on November 6 last year.
“The Morocco-Nigeria gas pipeline strategic project is part of that endeavor,” he said, noting that the project is designed to promote regional integration as well as to boost joint economic growth.
The pipeline is set to connect over 11 countries in the region to benefit from Nigerian gas sources.
Many countries have endorsed the project, including Senegal.
In December Senegal’s Minister of Petroleum Antoine Felix Abdoulaye Diome renewed his country’s support during a meeting with Director General of Morocco’s Office of Hydrocarbons and Mines, ONHYM, Amina Benkhadra in Dakar.
During the meeting, the Senegalese official said that the “ambitious” gas pipeline will benefit the populations and economies of the entire region.
He also cited a “specific program” planned by Morocco and Senegal to advance the project and strengthen South-South cooperation among all countries in the region
NATIONAL ECONOMY reports that in a bid to fast-track the process of achieving the Final Investment Decision (FID) on the Nigeria-Morocco Gas Pipeline, the federal government has intensified discussions with the Kingdom of Morocco.
An earlier discussion which held on Wednesday, 24th January, 2024, on the side-lines of a meeting between the minister of state for petroleum resources (Gas), Hon. Ekperikpe Ekpo, and the Moroccan minister of energy transition and sustainable development, Ms. Leila Benali, was anchored by the NNPC Ltd’s executive vice president, Gas, Power & New Energy, Mr. Olalekan Ogunleye, and the Director general of the Morocco National Office of Hydrocarbons and Mines (ONHYM), Mme Amina Benkhadra.
The talks focused on how to drive the partnership between the two countries to accelerate the Nigeria-Morocco Gas Pipeline Project in line with the series of Memoranda of Understanding (MoUs) signed between the two countries in Abuja in 2022.
Both parties emphasised the strategic importance of the project to the two countries and the entire African continent and the need to drive it to completion expeditiously in line with the objective of stemming energy poverty on the African continent.
The Cooperation Agreement for the 48” x 5,300Km pipeline from Nigeria to Dhakia (Morocco) and 1,700km from Dhakia to Northern Morocco was signed in 2017 with a capacity of 30 billion cubic meter (bcm) per year (equivalent of 3.0 billion standard cubic feet of gas per day).
The pipeline would traverse Republic of Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, Mauritania, and terminate in Morocco with a spur to Spain.
Due to the international nature of the project, the ECOWAS Commission is saddled with the responsibility to, among other things, facilitate inter-governmental treaty and host government agreements, establishment of Pipeline Higher Authority, and alignment with AU, UN and other relevant international bodies.
The project, among other things, will help drive the monetisation of Nigeria’s gas resources, maintain NNPC Ltd’s energy leadership in Africa, and promote economic and regional cooperation among African countries.
Funding Options
Morocco and Nigeria may likely turn to Gulf countries to fund a $25-billion gas pipeline project after it failed to spur interest by Europe.
Despite its “strategic significance” and intensified talk about the “Moroccan-Nigerian Gas Pipeline Project,” European countries have not yet announced it would contribute funds to the project.
Moroccan experts said the lack of European interest is mainly due the growing trend in the continent to rely more on hydrogen projects and the fact that the pipeline project has not progressed enough.
“Africa, including Morocco, could resort to other sources of funding for this vital project away from Europe although it is the main beneficiary of the project they could turn to financially strong sources, such as the Gulf Cooperation Council (GCC),” said Abdul Khaliq Tuhabi, a well-known Moroccan economist.
Another Moroccan energy expert said European countries are not convinced that the pipeline project would materialise.
“It appears only the Africans are convinced at this stage because it is a purely African project…but I believe Europe could eventually decide to join this project when it sees that it is gaining momentum and is on the verge of taking shape,” Idris Isawi said.
The pipeline project, part of an agreement signed by Morocco and Nigeria in 2017, will transport nearly 30 billion cubic metres of natural gas per year to Morocco and then to Europe through a pipeline that will stretch 5,300km from Nigeria to Dhakia in Morocco and 1,700 km from Dhakia to Northern Morocco. The pipeline will traverse the Republic of Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, Mauritania, and terminate in Morocco with a spur to Spain.
FG Gives Assurances
Minister of state, Petroleum Resources (Gas), Ekperikpe Ekpo has however assured of uninterrupted gas supplies to the Nigeria – Morocco gas pipeline project.
Ekpo, who led a delegation from Nigeria to Rabat, Morocco met with the country’s minister of Energy Transition and Sustainable Development, Ms. Leila Benali and other officials involved in the project.
Ekpo informed his host that President Bola Tinubu, was passionate and committed to the success of the project, a statement by the minister’s spokesman, Louis Ibah, said
Ekpo, further assured of Nigeria’s commitment to uninterrupted gas supplies – the major feedstock for the project – once it comes on stream.
According to Ekpo, Nigeria currently has 209 trillion cubic feet proven gas reserves and potential reserves increase opportunity to 600 trillion cubic feet.
Said Ekpo, “President Bola Tinubu is passionate about this initiative and will do everything possible to ensure that we get to the end of it; it is a long-term project but it will succeed. My assurance to you and the people of Morocco is that gas will not be a problem as far as Nigeria is concerned.”
