Nigeria-Morocco Gas Pipeline Approaches First Financing Station

SadaNews - The Moroccan state-owned natural resources company intends to raise part of the necessary funding amounting to $25 billion, to build a pipeline connecting gas fields in West Africa to the Mediterranean coast.

This financing operation will be the first from the National Office of Hydrocarbons and Minerals, known as "ONHYM", since its transformation into a public shareholding company in February. The company has exclusive authority to license and develop the kingdom's hydrocarbons and non-phosphate mineral resources located in North Africa.

Giants Gas Pipeline Project in Morocco

The main project for the government office since 2018 has been the development of a 6,900-kilometer gas pipeline, which includes land and sea components, linking gas sources in Nigeria, Senegal, and Mauritania to ten neighboring African countries, including Morocco. This structure is set to connect with the existing Maghreb-Europe gas pipeline, which links Morocco to Spain.

The company stated in response to questions via email that the change in the office's status strengthens "its ability to structure partnerships, mobilize diverse funding sources, and support large-scale projects within Morocco and internationally".

The company did not provide details regarding the size, timing, or type of the planned financing operation.

Algeria Launches Competing Project

On the other hand, Algeria is seeking to develop a competing project across the Sahara Desert to connect Nigerian gas fields to its pipeline heading to Europe, crossing fewer African countries. The National Office of Hydrocarbons and Minerals states that its pipeline network will enhance electricity and energy access for a larger number of countries on the continent.

It stated that its project aims to become "a structural step for European-African energy security". It added: "At a time when Europe is seeking to secure and diversify its gas supplies, the Nigeria-Morocco corridor presents a great opportunity to access one of the largest gas reserves that remain largely untapped".

The Moroccan gas transport company "OMCO" announced last week that a formal international government agreement and a final investment decision regarding the pipeline are expected to be concluded this year.