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November 1, 2024

ECOWAS, Morocco drive $26bn African Gas Pipeline initiative

ECOWAS, Morocco drive $26bn African Gas Pipeline initiative

By Obas Esiedesa, Abuja

The Economic Community of West African States (ECOWAS), alongside Morocco and Mauritania, made a significant push forward in the development of the African Atlantic Gas Pipeline (AAGP) project.

During a meeting in Abuja, government officials and corporate stakeholders reviewed the draft Intergovernmental Agreement (IGA) and Host Government Agreement (HGA), key steps in advancing the massive infrastructure initiative estimated at $26 billion.

The AAGP merges two major pipeline projects: the $975 million West African Gas Pipeline Extension Project (WAGPEP), extending 678 km, and the 5,669 km Nigeria-Morocco Gas Pipeline Project (NMGP), expected to cost around $25 billion. ECOWAS Heads of State agreed last year to integrate these efforts into a single pipeline network, strengthening energy connections across the continent.

Nigeria’s Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, highlighted the transformative potential of the project. “We stand at a critical juncture where these draft agreements hold the power to reshape our energy landscape, strengthen our economies, and uplift our people,” Ekpo stated. He added that the agreements should reflect a steadfast commitment to enhancing hydrocarbon and energy trade across ECOWAS nations, providing much-needed access to natural gas in West Africa, and expanding Africa’s global gas market presence.

The pipeline will connect Nigeria’s extensive natural gas reserves to markets in North Africa and Europe, spanning 16 countries. By improving energy access and security across these regions, the AAGP is set to unlock economic growth, fuel industrialization, and drive job creation.

Morocco’s Minister of Energy Transition and Sustainable Development, Laila Benali, expressed optimism about the project’s potential to open new markets and create employment. Meanwhile, ECOWAS Commissioner for Infrastructure, Energy, and Digitalisation, Sediko Douka, emphasized the importance of collaboration among all parties, saying, “We have reached a critical phase in the development of this project, and it’s crucial for all parties to work closely to bring it to fruition.”

NNPC Limited’s Group CEO, Mallam Mele Kyari, represented by Olalekan Ogunleye, Executive Vice President for Gas, Power, and New Energy, remarked on the significance of the pipeline as Africa’s largest, aimed at connecting at least 13 nations in shared prosperity and sustainable development.

The AAGP stands as a flagship initiative for African energy integration, offering a transformative pathway to energy security and economic collaboration across the continent.

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