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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Moroccoworldnews
The Nigeria-Morocco Gas Pipeline is set to receive a total investment of $25 billion next year, according to the head of the West African nation’s state oil company.
Discussions for the financing of the energy megaproject are still ongoing, with the Nigerian National Petroleum Company (NNPC) Chief Executive Officer Mele Kyari said that a final investment decision will be made next year, according to a report from American business-focused magazine Bloomberg.
The NNPC CEO did not disclose however the entity behind the investment in the 5,600-kilometer-long offshore pipeline that would travel across 11 African countries and ultimately reach Europe.
The investment would cover the overall expenses related to the construction of the pipeline with a cost estimated at $20-25 billion, Kyari said in an interview quoted by Bloomberg.
Construction would be broken down into phases, the first would take three years, while the other stages would take five years to reach completion.
Earlier estimates indicate that that pipeline could take up to 25 years to become operational.
First conceived in 2016, the Nigeria-Morocco pipeline has been garnering significant attention amid the ongoing Ukraine crisis, the tightening of global gas supplies, and increasingly tight sanctions on Russia. Therefore, the project is increasingly appealing to Europe, as it promises to lessen its dependency on Russian gas, experts point out.
Earlier this year, the project received substantial funding from the Organization of Petroleum Exporting Countries (OPEC). The investment is currently funding the project’s feasibility study also known as Front-End Engineering Design (FEED).
While the pipeline could fulfill its purpose by delivering gas to Europe and Morocco, current plans will see it further its potential by crossing 11 African countries, fulfilling the energy needs of nearly 400 million people.
In Africa, the project promises to support the continent's socio-economic development, experts argue. The pipeline represents a reliable source of employment and attracts investments to the region.
