Friday, May 22, 2026

Nigeria and Morocco seek US funding for Atlantic gas pipeline

Date:

Nigeria‑Morocco Atlantic Gas Pipeline: A Vision for West‑African Energy Integration

In early May 2024, officials from Morocco’s National Office of Hydrocarbons and Mines (ONHYM) travelled to Washington, D.C. to discuss financing for one of the continent’s most ambitious infrastructure undertakings: the Nigeria‑Morocco Atlantic gas pipeline. Often referred to as the “Atlantic African Gas Pipeline,” the project aims to link gas reserves along West Africa’s coastline with European markets while also supplying domestic consumers across the region.

Scope and Technical Details

The pipeline would stretch roughly 6,900 km from Nigeria’s Niger Delta, skirting the coasts of Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea‑Bissau, Senegal, Mauritania, Western Sahara, and finally reaching Morocco. The design includes both onshore and offshore sections, allowing gas produced in multiple countries to be gathered and transmitted onward.

According to project documents shared by ONHYM and the Nigerian National Petroleum Corporation (NNPC), the line would have a transport capacity of 30 billion cubic metres (bcm) per year. Half of that volume—approximately 15 bcm/year—is earmarked for domestic consumption in the participating states, with the remainder destined for export to Spain and the broader European market via the existing Maghreb‑Europe pipeline that runs through Morocco.

Project Timeline and Investment

Analysts estimate the total capital requirement at around US $25 billion, a figure that reflects the pipeline’s length, offshore engineering challenges, and the need for associated compression stations and storage facilities. Construction is envisaged in phases, with the first segment—connecting offshore fields off Senegal and Mauritania to the Maghreb‑Europe link—targeted for operation by 2031. Full completion of the 6,900‑km route is projected for 2046, contingent on securing financing, regulatory approvals, and stable security conditions along the corridor.

Why an Atlantic Route?

Nigeria has long pursued pipeline solutions to monetise its vast natural‑gas reserves, which exceed 200 tcf (trillion cubic feet). Earlier efforts, such as the trans‑Saharan pipeline linking Nigeria, Niger, and Algeria, have stalled due to security concerns and diplomatic complexities. In contrast, a coastal alignment offers several strategic advantages:

  • Lower geopolitical risk: The route avoids the volatile interior of the Sahel and relies on maritime corridors that are easier to monitor and protect.
  • Modular construction: Sections can be built and brought into service incrementally, allowing early revenue streams while later phases are still under development.
  • Regional revenue sharing: By enabling gas exports from Senegal, Mauritania, Ghana, and other coastal producers, the pipeline creates new fiscal opportunities for a broad swath of West African states.

Agwu Ojowu, a senior consultant at Africa Practice, noted that the Atlantic alignment is “a less risky, more viable option” for monetising regional gas resources while simultaneously improving electricity access for millions of households.

Financing Hurdles and Market Demand

A central question facing investors is whether European demand will sustain the pipeline’s export leg. Europe’s gas consumption has been evolving rapidly, driven by decarbonisation policies, diversification away from Russian supplies, and growing interest in hydrogen and renewable gases. Nonetheless, short‑ to medium‑term forecasts from the International Energy Agency (IEA) still project a need for additional pipeline‑delivered natural gas to meet heating and industrial demand, particularly in Spain and Portugal, which are directly linked to the Maghreb‑Europe corridor.

To bolster confidence, the project sponsors are exploring a mix of financing instruments:

  • Multilateral development bank loans (e.g., African Development Bank, World Bank)
  • Export credit agencies from involved nations
  • Strategic equity stakes from international energy companies interested in upstream gas production
  • Potential green‑linked bonds that earmark a portion of proceeds for domestic electrification projects

Transparency in revenue‑sharing agreements and robust fiscal frameworks will be essential to attract institutional investors who prioritise ESG (environmental, social, and governance) criteria.

Challenges Ahead

Despite its promise, the Atlantic gas pipeline faces several formidable obstacles:

  • Security: Piracy, insurgency, and communal unrest in parts of the Gulf of Guinea and the Sahel could threaten both offshore installation works and onshore right‑of‑way access.
  • Regulatory harmonisation: Twelve sovereign jurisdictions must align on tariffs, customs, environmental standards, and dispute‑resolution mechanisms.
  • Environmental and social impacts: Offshore trenching, pipeline laying, and potential methane leaks require rigorous impact assessments and mitigation plans to meet international standards such as the Equator Principles.
  • Financing timing: Raising US $25 billion in a tightening global credit environment will demand innovative structuring and strong sovereign guarantees.

Addressing these issues will need sustained diplomatic engagement, technical expertise, and a clear commitment from the participating governments to treat the pipeline as a regional public good rather than a purely national asset.

Outlook

If the consortium can navigate the financing and geopolitical complexities, the Nigeria‑Morocco Atlantic gas pipeline could become a cornerstone of West‑African energy integration. By delivering up to 15 bcm/year to domestic markets, it has the potential to expand electricity access, stimulate industrialisation, and reduce reliance on costly liquid fuels. Simultaneously, its export capacity offers Europe a diversified supply route that complements existing Mediterranean links.

Realising this vision will not happen overnight, but the phased approach—starting with a operational segment by 2031—provides a tangible milestone for stakeholders to measure progress. Continued dialogue among ONHYM, NNPC, regional bodies such as ECOWAS, and international financiers will be critical to transforming the Atlantic African Gas Pipeline from a concept on paper into a functioning artery of African‑European energy cooperation.

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