Market News

The United Arab Emirates (UAE) has announced its participation in financing the ambitious $25 billion natural gas pipeline project linking Nigeria to Morocco, a massive transcontinental infrastructure that will ultimately extend into Europe.

Morocco’s Minister of Energy Transition and Sustainable Development, Leila Benali, made the disclosure during a recent parliamentary session, confirming the UAE’s financial commitment alongside support from other major global institutions.

“The project has already secured backing from the Inter-American Development Bank, the OPEC Fund, the European Investment Bank, and the UAE,” Benali said.

She noted that Morocco has completed all feasibility and engineering studies for the trans-African pipeline, which has now been officially renamed the African-Atlantic Gas Pipeline.

The pipeline, over 6,800 kilometers long including 5,100 kilometers offshore is poised to become the longest offshore gas pipeline in the world. It will span 15 African countries, connecting Nigeria’s gas reserves to Morocco’s southern city of Dakhla and stretching north toward Europe.

The project is being implemented in phases:

• Phase 1 will connect Morocco to offshore gas fields in Senegal and Mauritania, extending toward Ghana and the Ivory Coast.
• Phase 2 will link Nigeria to Ghana.
• Phase 3 will complete the connection from the Ivory Coast to Senegal.

With the Economic Community of West African States (ECOWAS) among its key backers, the pipeline is expected to unlock widespread energy and economic benefits across West and North Africa. The venture is projected to significantly enhance electricity access in participating nations and promote economic integration across a region home to over 400 million people.

In support of the infrastructure phase, China’s Jingye Steel Group has been awarded a contract to supply the required pipes, according to the Moroccan energy minister.

The pipeline also aligns with Morocco’s broader energy strategy, as the kingdom pursues leadership in renewable energy and green hydrogen production.

A joint venture between Nigeria and Morocco will oversee the project’s development, following a financing agreement signed by both countries.

The pipeline is seen not only as a crucial energy corridor but also as a powerful vehicle for South-South cooperation, regional industrial development, and long-term continental energy security.