Bloomberg reported that the Nigerian Petroleum Corporation and the Moroccan National Authority for Hydrocarbons and Mines signed a memorandum of understanding last month that brought the long-term pipeline project closer to reality.
Bloomberg added that the canal is one of two such initiatives being promoted by the Nigerian company in an attempt to capitalize on European demand for new sources of gas following Russia’s special military operation in Ukraine.
“We will make a final investment decision next year,” NNPC CEO Melle Kyari said in an interview in Nigeria’s capital, Abuja.
He added that funding talks are ongoing, but no disclosures have been made of entities interested in supporting a 5,600-kilometer (3,840-mile) pipeline that will transport gas to 11 countries along the African coast on its way to Morocco before linking up with Spain or Italy.
The Economic Community of West African States, which includes 15 countries, also signed a Memorandum of Understanding.
The project will cost between $20 billion and $25 billion to build and will be built in phases, according to Chiari, who expects the first part to take three years and the second five years.
Following an earlier agreement in 2018, MAP said the pipeline could take 25 years to complete.
Nigerian gas exports are currently limited to Nigeria LNG Limited, a joint venture between NNPC and international energy companies including Shell Plc and Eni SpA.
Nigeria has the largest proven gas reserves in Africa, at around 200 trillion cubic feet, most of which is untapped, flared or re-injected into oil wells.
The government says it wants to monetize more of this resource for domestic use and exports, replacing crude oil as the country’s main commodity.
According to Kyari, a fourfold increase in gas production over the next four years is “significantly achievable.”
Source: “Bloomberg”