$25B Africa Atlantic Gas Pipeline Nears Final Investment Decision
After the start of the Ukraine-Russia war, the EU sought to diversify its gas supply away from Russia as it imposed economic sanctions on the latter. The US has been able to step in to fill in the gap in supply as the EU had to find alternatives. Seeing an opportunity, a number of Africa countries banded together to come up with an alternative plan, which came to be known as the Africa Atlantic Gas Pipeline (#AAGP).
Although peace talks between Ukraine and Russia are ongoing, the project still has its raison d’etre. The EU seems to have learnt its lesson about putting too many eggs in one basket and is scrambling to diversify its energy supply chains.
Initially, the AAGP was promoted primarily by Morocco and Nigeria, but other countries along the way have been persuaded to jump onto the ‘gravy train.’ In September 2022, an agreement among Morocco, Nigeria and ECOWAS was sealed.
Recently, Moroccan Minster of #EnergyTransition Leila Benali provided an update on the AAGP to the the Upper House, known as the Council of Advisors. As of May 2025, the feasibility studies and preliminary engineering design have been completed. As key proponents of the project, Morocco and Nigeria will take the lead to set up a 50/50 JV between ONHYM and NNPC to oversee the implementation.
Valued at USD 25 billion, the AAGP will be a key driver in monetizing the vast natural gas resources in the northwestern Africa region. Nigeria will find a new market for its large gas reserves and Morocco will become a major energy transit hub linking Africa and Europe.
The mega project has secured the support in principle from multiple financiers including the UAE, the OPEC Fund, the Islamic Development Bank (IDB), and the European Investment Bank (EIB). The US is said to be in discussion with Nigeria as well.
The pipeline spans a distance of nearly 6,000 kilometers and traverses 13 countries with a total transport capacity of up to 30 billion cubic meters annually. As a complement to the #AAGP, Algeria and Nigeria are also contemplating an inland pipeline across the Sahara Desert.
Morocco is expected to launch an EOI for the project by the end of 2025. As the project is quite huge, it will be carried out in phases with the initial phase connecting Morocco to Senegal, via Mauritania. Once completed, the Morocco-Nigeria gas pipeline will facilitate access to cleaner energy for nearly 400 million people.