Financial Energy Review
The $25 billion Nigeria-Morocco gas pipeline project has attracted more regional participation that is expected to reduce funding challenges of the project.
The new funding arrangement is coming after Equatorial Guinea officially joined the project, linking Morocco to Nigeria.
The endeavour marks a significant advance in the African energy landscape.
Furthermore, this decision symbolizes a significant expansion of the project to Central Africa, reinforcing the idea of regional integration through the energy infrastructure.
The venture to join the project was announced at an official ceremony in Malabo. This was in the presence of representatives of Member States and key stakeholders.
The accord underlines the commitment of Equatorial Guinea to participate in one of the most important energy projects on the continent.
While the project’s total cost is estimated at $25 billion, the accession of new regional partners, such as Equatorial Guinea, could contribute to its financing and long-term sustainability.
Once the Morocco-Nigeria gas pipeline project is complete, it is expected to extend more than 5,600 kilometers. It will cross several countries of Africa in the West and Central regions, allowing the transport of natural gas to Morocco. Once in Morocco, the project ensures that the product can be exported to Europe.
This project represents an unprecedented opportunity to diversify energy sources. It also strengthens the energy security of the African countries concerned while offering a potential for export to European markets.
The market in the European continent is diverse as many nations search for reliable and alternative energy sources. On the socio-economic level, the implementation of this project is expected to create thousands of jobs during the construction phase. In addition, once operational, the pipeline will improve access to energy in regions often far from traditional supply networks. Through this, the project will reduce energy poverty and stimulate local economic development.
Though economic and strategic challenges in implementing the Morocco-Nigeria gas pipeline project are considerable, there is hope with Equatorial Guinea, which already has a significant gas sector, joining this initiative opens new avenues for the export of its energy resources.
It also stimulates investment in local infrastructure and fosters development. Upon completion, the gas pipeline will be the world’s longest offshore pipeline and the second-longest pipeline overall.
Based on the 25-year estimate given in 2017, construction will be completed by 2046.
In June 2023, it was reported that Côte d’Ivoire, Liberia, Guinea, and Benin had signed agreements with Morocco and Nigeria to participate in the Nigeria-Morocco gas pipeline project.
The signing ceremony occurred at the Economic Community of West African States (ECOWAS) headquarters in Lagos, and also occurred alongside the steering Committee meeting for the Nigeria-Morocco gas pipeline project, which representatives from ECOWAS and all the relevant countries attended.
Following this development, ten states are now involved in the project, building upon the agreements previously signed with ECOWAS.
These include; Mauritania, Senegal, Gambia, Guinea-Bissau, Sierra Leone, and Ghana. Apart from the construction of the Morocco-Nigeria gas pipeline project, Morocco is making strides as a green energy hub through the implementation of Africa’s first wind farm.
Morocco is looking for a consultant to do a feasibility study on Africa’s largest offshore wind farm, which could be Africa’s first. The Moroccan Agency for Sustainable Energy (Masen) and the European Investment Bank (EIB) have submitted a tender for technical assistance with the study.
The favoured site is in the Atlantic Ocean off Essaouira, a resort popular with windsurfers owing to the constant flow of air from the Atlantic into the Saharan low-pressure area. The tender says the area’s strong winds and shallow water give it high potential for wind power energy.
