An intergovernmental agreement (IGA) on a planned $25 billion Nigeria-Morocco gas pipeline will be signed this year, Amina Benkhadra, head of Morocco’s hydrocarbons and mining agency (ONHYM), has said.

In a report in Reuters on Monday, Benkhadra said that after the intergovernmental agreement, an authority for the pipeline ,consisting of ministerial representatives from 13 participating countries to provide political and regulatory coordination, will be established in Nigeria.

Agreed a decade ago, the project – known as the African Atlantic Gas Pipeline – would run 6,900 km on a hybrid offshore-onshore route with a maximum capacity of 30 billion cubic metres (bcm), including 15 bcm to supply Morocco and support exports to Europe.

The pipeline, which has the backing of the Economic Community of West African States (ECOWAS), has completed ⁠its feasibility study and front-end engineering design (FEED) stages.

“Following the intergovernmental agreement, a high authority for the pipeline will be established in Nigeria, bringing together ministerial representatives from each of the 13 participating countries to provide political and regulatory coordination.

“A project company will also be created in Morocco as a joint venture between ONHYM and the Nigerian National Petroleum Company (NNPC) to lead the execution, financing and construction phase.

“ The pipeline would spur economic integration across West Africa by expanding electricity generation and facilitating industrial and ‌mining ⁠development, while helping Morocco position itself as an energy bridge between Africa and Europe.

“Initial segments of the project would connect Morocco to gas fields in Mauritania and Senegal, and link Ghana to Cote d’Ivoire further south, before a final segment connects Ghana to Nigeria’s gas fields.

According to Benkhadra ,first gas from the initial phases is expected in 2031, adding that “the project does not rely on a single global final investment decision, each segment is designed ⁠to be developed as “standalone system” to allow for early value build up.”

She, however, noted that while investor interest in the project remains strong, no final funding commitments have been secured, with financing expected to combine equity and debt raised by the project company.

“The project is attracting strong interest due to its scale, its phased structure, and its strategic positioning.

“The financing structure will be led by the project company, which will mobilise a mix of equity and debt,” Benkhadra said. (This Day)