Morocco’s state-controlled natural resources agency is preparing to launch a major fundraising campaign to finance a $25 billion pipeline designed to transport West African gas to the Mediterranean coast, officials announced this week.

The initiative marks the first capital raise by the Office National Des Hydrocarbures & Des Mines (ONHYM) since its reorganization into a public limited company in February. 

The legislative shift was designed to bolster the agency's "capacity to structure partnerships, mobilize diversified funding, and support large-scale projects," according to a company statement.

Proposed to span 4,300 miles (6,900 kilometers), the pipeline is a massive engineering undertaking, including both onshore and offshore segments. It’s intended to link gas deposits in Nigeria, Senegal, and Mauritania to 10 neighboring African nations.

According to the plan, the project’s northern terminus will connect to the existing Maghreb-Europe Gas Pipeline, which bridges the gap between Morocco and Spain. By integrating these networks, Morocco aims to position itself as a critical energy hub between Africa and Europe.

The project emerges as Europe aggressively seeks to diversify its energy sources and reduce its reliance on traditional suppliers. 

ONHYM described the corridor as a "major opportunity" to unlock some of the world's largest untapped gas reserves, calling it a "structuring step for Euro-African energy security."

However, the project faces regional competition, with Algeria currently promoting a rival Trans-Saharan pipeline that would connect Nigerian fields to European markets through a shorter route across the desert, crossing fewer countries.

ONHYM maintains that its longer coastal route offers broader benefits, arguing that the network will significantly boost electrification and energy access for the participating West African nations.

While ONHYM has not yet disclosed specific details regarding the timing or size of the initial fundraising round, progress is accelerating. 

OMCO, Morocco’s gas-transport firm, indicated last week that a formal inter-governmental agreement and a final investment decision are expected to be finalized before the end of the year. 

Last week, Morocco’s National Office of Hydrocarbons and Mines (ONHYM) official hinted at signing an intergovernmental agreement to formalize the legal and regulatory framework for the pipeline’s operations.