NNPC Ltd Signs Agreement With Four National Oil Companies On $25bn Nigeria-Morocco Gas Pipeline Project

The Nigerian National Petroleum Company Ltd on Friday signed a Memorandum of Understanding with four national oil companies for the implementation of the Nigeria-Morocco Gas pipeline project.

The agreement was signed at the ECOWAS Secretariat in Abuja
at the sidelines of the First Steering Committee Meeting on the Trans-Atlantic Gas Pipeline Project.

These tripartite MOUs were respectively and successively signed between the Nigerian National Petroleum Company Limited (NNPC) and the Office National des Hydrocarbures et des Mines (ONHYM) of Morocco on one hand, and the Société Nationale des Opérations Pétrolières of Cote d’Ivoire (PETROCI), the National Oil Company of Liberia (NOCAL), the Société Nationale des Hydrocarbures of Benin (SNH-Benin), and the Société Nationale des Pétroles of the Republic of Guinea (SONAP) on the other hand.

These Memoranda of Understanding, similar to those signed with ECOWAS on September 15, 2022, Mauritania and Senegal on October 15, 2022, and The Gambia, Guinea-Bissau, Sierra Leone, and Ghana on December 5, 2022, reaffirm the commitment of the Parties to this strategic project.

The Nigeria-Morocco Gas Pipeline (NMGP) Project is an initiative of the Federal Government of Nigeria and the Kingdom of Morocco and was conceived during the visit of King Mohammed VI of Morocco to Nigeria in December 2016.

The Pipeline Cooperation Agreement for the project was executed in 2017.

The pipeline length of the project is 5,300 kilometers from Nigeria-Dakhla (Morocco) and 1,700 kilometers (onshore) from Dakhla (Morocco)-Northern Morocco.

The pipeline capacity for the project is 30BCM per year which is equivalent to 3.0 BSCFD

Already, MoUs have been executed for the project with ECOWAS, SMH of Mauritania and Petrosen of Senegal.

The NMGP Project is aimed at monetization of Nigeria’s abundant natural gas resources, thereby generating additional revenue for the Country, diversification of Nigeria’s gas export routes, elimination of gas flaring.

It will also assist in supplying gas to Morocco, 13 ECOWAS Countries and Europe, integration of the economies of the Sub-region, improvement of living standards of people within the Sub-region, creation of wealth and poverty alleviation, assisting in the fight against the desertification through sustainable and reliable gas supply as well as providing avenue for other Countries along the pipeline route to develop and export their gas.

The pipeline is a 48 Inch X 5,300 Km (Offshore from Barss Island-Nigeria to Dakhla-Morocco) and 56” X 1,700 Km (onshore from Dakhla-Morocco to MEP), with a total length of about over 7,000 Km and about thirteen (Compressor Stations.

The pipeline will originate from Brass Island (Nigeria) and terminates at North of Morocco, where it will be connected to the existing Maghreb European Pipeline (MEP) that originates from Algeria (via Morocco) to Spain.

Once completed, the project will enhance the monetization of the natural gas resources of the affected African countries and also offer a new alternative export route to Europe.

The pact signed on Friday also marks another important milestone in the quest to tackle the energy poverty that has been limiting the potential of the African continent to boost industrialisation.

Additionally, the project’s Steering Committee convened at the ECOWAS Secretariat to discuss the progress of the Project and its strategic direction.

This significant infrastructure project will contribute to accelerating access to energy for all, improving the living conditions of the populations, integrating the economies of the sub-region, and mitigating desertification.

It will achieve these goals through the provision of sustainable and reliable gas supply that aligns with the continent’s new environmental commitments, while providing Africa with a new economic, political, and strategic dimension.

Speaking at the event, the NNPC Ltd Group Chief Executive Officer, Mallam Mele Kyari commended President Bola Ahmed Tinubu and the Nigerian Government for entrusting NNPC Ltd with this strategic project as the National Energy Company.

He added that as a commercial enterprise, NNPC Ltd sees this project as an opportunity to monetize Nigeria’s abundant hydrocarbon resources, by expanding access to energy to support economic growth, industrialization, and job creation across the African continent and beyond.

He said, “Today marks another major milestone for our countries and our companies as we hold the first Steering Committee meeting as enshrined by the Memoranda of Understanding we all executed in 2022.

“We are also pleased to welcome our counterparts from NOCAL of Liberia, PETROCI of Cote D’Ivoire, SNH Benin and SONAP of Guinea for committing to collaborate with us on this project through the execution of Memoranda of Understanding today.

“This is a clear demonstration of the commitment of the Host Governments, the ECOWAS Commission, and the National Oil Companies to deliver on this strategic project, create wealth and value for our countries and other stakeholders.

“We are pleased to note that currently, FEED Phase II Study is over 70% and the tendering process for the Surveys, Environmental and Social Impact Assessment (ESIA) as well as Land Acquisition & Resettlement Policy Framework (LARPF) are on track with clear visibility into project funding.

“As you are aware, our collective decisions and actions guided by our shared vision would extends far beyond gas supply to spur prosperity and economic integration between our nations.

“We therefore express appreciation to His Excellency, President Bola Ahmed Tinubu GCFR, and the Nigerian Government for entrusting NNPC Ltd. with this strategic project as the National Energy Company.

“We would also like to acknowledge the very critical role played by the ECOWAS Commission in co-hosting this Steering Committee meeting in addition to planned execution of the Treaty, Host Government Agreements, and other key enablers for the project.”

The NNPC Boss also appreciated ONHYM, and other partners for their unrelenting efforts and collaboration to make this project a success.

As a commercial enterprise, Kyari said the NNPC sees this project as an opportunity to monetize the abundant hydrocarbon resources, by expanding access to energy to support economic growth, industrialization, and job creation across the African continent and other geographies.

Also speaking, the Director General of ONHYM, Amina Benkhadra said that the gathering represents a progressive step in ensuring social and economic development through energy security and accessibility geared towards attaining total development of Africa by Africans.

He said energy security in Africa is of utmost importance if individual countries are to see an acceleration in their developmental goals.

He said, “Our meeting here today comes to affirm our shared commitment to enhance energy security, promote regional cooperation and foster sustainable development.

“We acknowledge and appreciate the active involvement of the Government of the Federal Republic of Nigeria and the Kingdom of Morocco in this landmark agreement.”

In his remarks, the ECOWAS Commissioner for Infrastructure, Energy and Digitization, Mr Sédiko Douka said the gas pipeline project is significant as it will help strengthen the region’s electricity production/generation capacity, stimulate industrial and agricultural development, and contribute to the energy transition by using a source of energy that is cleaner than other fossil fuels

In August 2017, NNPCL and ONHYM began a feasibility study for the pipeline for the project estimated to cost US$25 billion, and would be completed in stages over 25 years.