Nigeria and Morocco are set to sign an intergovernmental agreement this year to formalize the legal and regulatory framework for a $25 billion transcontinental gas pipeline, marking a pivotal step for one of Africa’s most ambitious infrastructure projects.

The 6,900-kilometer (4,287-mile) project, known as the African Atlantic Gas Pipeline, aims to transport natural gas from energy-rich Nigeria through 13 West African nations to Morocco and eventually into European markets.

Amina Benkhadra, director-general of Morocco’s National Office of Hydrocarbons and Mines (ONHYM), told Reuters that the upcoming agreement will establish a "high authority" for the pipeline. 

Based in Nigeria, this body will include ministerial representatives from each participating country to ensure political coordination.

To navigate global financing challenges and complex cross-border logistics, the project will be developed in stages rather than waiting for a single final investment decision.

Each section is designed to function independently to provide early economic value. Early phases will link Morocco to gas fields in Mauritania and Senegal, while southern segments will connect Ghana to Côte d’Ivoire and eventually to Nigeria.

With the first gas flow from the initial phases expected by 20231, the pipeline is designed with an annual capacity of 30 billion cubic meters. 

Half of that volume is earmarked for Morocco’s domestic needs and exports to Europe, which has sought to diversify its energy sources following geopolitical disruptions.

To manage construction, a joint venture project company will be formed between ONHYM and the Nigerian National Petroleum Co. Ltd. While no final funding has been secured, the company plans to raise a mix of equity and debt.

Beyond exports, the project is expected to transform the West African landscape by boosting electricity generation and supporting mining and industrialization. 

For Nigeria, which holds some of the world's largest proven gas reserves, the pipeline provides a critical avenue to monetize resources and increase non-oil revenue.

Last year, the pipeline project hit a new milestone: the feasibility study and route were finalized, and Morocco announced it would launch tenders for the project.