The Nigerian government and Morocco are seeking funds to establish the longest offshore pipeline in the world to convey Nigerian gas from Nigeria to the North African country, Morocco amidst the war between Russia and Ukraine.
Driving the news
The gas pipeline would be the second longest pipeline in the world after the Druzhba pipeline, which carries oil from Eastern Russia to Ukraine, Belarus, Poland, Hungary, Slovakia, the Czech Republic and Germany.
- The Nigerian-Morocco pipeline would run across 11 West African countries, including countries like Benin, Togo, and Ghana.
Brief Background to the story
- In June 2018, Nigeria’s President, Muhammadu Buhari and Morocco’s King Mohammed VI signed an agreement to establish a mega-project transporting gas along the Atlantic coast of about 7,000 km. The two leaders signed the premise of this agreement was signed in 2016.
- Since Russia’s invasion of Ukraine, Africa gas has gained more traction as the European Union seeks alternatives to meet its gas supplies.
What they are saying
- The Organization of Petroleum Exporting Countries (OPEC) has promised to sponsor the phase 2 feasibility study of the Nigeria-Morocco pipeline estimated at $25 billion, with $14.3 million.
- Nigeria’s Minister of State for Petroleum, Timipre Sylva said that the mega project has attracted major investors, including Russians. He added that the project is still under study as the parties continue to seek funding.
State of play
The latest data on Nigeria’s gas reserve shows a 1.42% increase from the 206.53tcf it was in 2021. The national gas reserves therefore stand at 209.5 trillion cubic feet.
Why it matters
With Nigeria being a major gas supplier, several sectors of the economy would benefit, including aviation and electricity. In addition, poverty and unemployment rates would reduce with an increase in the influx of forex.