﻿How the 25 billion dollar morocco nigeria project will change the face of the energy
sector in Africa. Morocco is on the verge
of establishing a public company to manage a natural gas supply project from Nigeria
to Morocco via a pipeline that will run through several African countries, according to a Morrocan
daily on Sunday, October 24, 2021. The Moroccan Energy Ministry has already approved the creation
of the gas pipeline management company, which will also be tasked with developing
and managing domestic gas infrastructure and networks across the Arab North African country,
according to Hespress in Arabic. As a continuation of the existing West
Africa Gas Pipeline (WAGP) between Nigeria, Benin, Togo, and Ghana, the Morocco-Nigeria pipeline,
both onshore and offshore, would allow Nigeria to supply natural gas to 13 countries in West and
North Africa. With a possible extension to Europe via Spain, the Morocco-Nigeria pipeline would be
one of the world's longest (5,660 kilometers, or 3,517 miles), providing a new opportunity for
socioeconomic development in Western Africa. Welcome to THINKRICH MEDIA the community which
brings to you entrepreneurial, business and personal development content to inform, motivate
and inspire you! We also want to introduce you to our special african development playlist because
we strongly believe Entrepreneurship rather than global pity is the key to Africa’s growth and
development so if you’re African and you aren’t subscribed to our community you’re missing out!
Nigeria is a major exporter of oil and gas, with a proven natural gas reserve of over 192
trillion cubic feet. In fact the construction of the Nigerian energy train 7 was recently
inaugurated. This will result in an increase in their annual production capacity from 22 million
to 30 million tons. This will also attract more than $12 billion in foreign direct investment.
Additionally, seven critical gas development projects are currently underway concurrently
to improve local gas supply and support power generation up to 15 gigawatts in capacity.
Prior to the Nigeria-Morocco pipeline, the trans-Saharan gas pipeline was contemplated.
This pipeline would have carried gas from Nigeria to Europe via a restive territory
in the Sahara desert, Algeria, and Europe. That project, estimated to cost up to $20 billion,
was dropped in favor of the Nigeria-Morocco gas pipeline. The viability and advantages of the
Nigeria-Morocco gas pipeline far outweigh those of the Nigeria-Algeria pipeline.
This has resulted in the Nigerian government completely abandoning the project proposals.
All parties involved in the construction of this massive 25 billion dollar Nigeria-Morocco
gas pipeline are doing everything possible to bring the project to a successful conclusion.
When the Nigeria-Morocco pipeline is completed, Nigeria will face direct
competition from other countries that already have pipelines connecting to Southern Europe.
Following Algeria's failure to fulfill its 2002 commitment to construct the Trans-Saharan pipeline
connecting Algeria to Nigeria via Niger, Morocco has seized the opportunity to establish a project
compatible with its agenda of strengthening cooperation with sub-Saharan counterparts.
This South-South Agenda focuses on one of Morocco's primary objectives:
to become the 'electricity hub for North and West Africa' in terms of electricity trading, capacity
building, and innovation. This Agenda, however, reveals underlying tensions and competition with
Morocco's neighbor Algeria, the second largest exporter of natural gas in Africa after Nigeria.
These tensions began during the protracted Western Sahara conflict, which began in 1975 with
Spain's decolonisation of the territory. While Morocco asserts sovereignty over Western Sahara,
Algeria unambiguously supports the Sahrawi secessionist Front Polisario in its quest for
independence. More than a matter of identity, this conflict evolved into a dispute over access to
and exploitation of the Sahrawi region's natural resources, specifically phosphate and fisheries.
Notably, Morocco rejoined the African Union in 2017 after leaving in 1984 due to the Western
Sahara conflict. Rabat also applied for membership in the Economic Community of West African States
(ECOWAS) in the same year, demonstrating its commitment to developing a strong
relationship with Sub-Saharan Africa. In line with this political advancement,
the Morocco-Nigeria pipeline appears to be a powerful tool for the Moroccan government
(Makhzen) to invest in intra-African trade and cooperative development projects.
Additionally, Morocco's agenda includes cooperation with Europe. Morocco-Nigeria
pipeline aims to supply gas to Europe via Spain, similar to the Algerian Maghreb-Europe pipeline.
Additionally, the new pipeline is of interest to European countries,
which wish to reduce their growing reliance on Russia's Gazprom pipeline.
Given that Russia is currently building a new pipeline, Nord Stream II, it is in
Europe's best interests to explore alternative energy sources, including those from Africa.
The gas is supplied by the Escravos lagos pipeline system, which was constructed in 1989.
This system is a massive network of pipes that stretches for more than 514 kilometers.
The pipeline was constructed to serve many power plants in Lagos and the western states,
as well as the domestic gas market. The pipeline begins deep in the Niger Delta and extends all the
way to Lagos. Many power plants in Nigeria rely on it, as do some heavy industries that require gas.
There are numerous gas plants that provide gas to the pipeline. The Escravos gas pipeline feeds
the 678km west African gas pipeline system that serves Benin Republic, Togo, and Ghana.
This pipeline has a capacity of 180 billion cubic feet of natural gas per year, so it makes sense
for the Nigerian-Morocco gas pipeline to continue from where the West Africa gas pipeline ends,
which is in Takaradi, Ghana. The pipeline will run from Takaradi to Ivory Coast. It is up to the city
where the gas gathering facility will be built. It could be Abidjan, the capital, or San Pedro.
Following Ivory Coast, the pipeline continues on to Liberia and then Sierra Leone. Following Sierra
Leone, the pipe will travel to Guinea Conacry. Because the distance between Conacry and Mali is
only about 400 kilometers, Mali may decide to connect to the gas pipeline around this time.
It will relocate to Guinea-Bissau after Conacry. Following Bissau, the pipeline
will travel to Senegal and Gambia, landing in Dakar and Banjo, respectively. Following this,
it will travel to Mauritania, where it will land anywhere along the coast or in the capital
city of Port Louis. From here, it will travel north to the Western Sahara, then to Morocco,
where it will land in one of the country's coastal cities, either Casablanca or Rabat,
or it may travel further north to Tangier, where the Maghreb-Europe gas pipeline already
connects to Europe. This pipeline transports gas from Algeria to Morocco and Europe.
After Tangier, it will travel to Cadiz, Spain, as its final destination.
There is no doubt that this will be a very long gas pipeline system (5660km in length).
This project has progressed quickly from concept to proposal, and after numerous meetings between
the Nigerian and Moroccan governments, it appears that the project will become a reality soon.
Since Morocco's King Mohammed VI's visit to Abuja in December 2016,
several meetings have taken place to assess the project's technical and economic viability.
Morocco and Nigeria have signed two protocols of the agreement, which discuss the construction of
a gas pipeline and an LNG terminal, a facility that allows for the regasification of liquefied
natural gas. The 5,660 km pipeline aims to improve the quality of life in the 13 countries
by providing full electrification, as well as to promote economic and social progress.
Because Nigeria is rich in crude oil and natural gas, resource extraction is the most important
sector of the Nigerian economy. The fact that the Western region of Africa holds approximately 30%
of the continent's natural gas reserves, with Nigeria being a world leader in gas export,
emphasizes the importance of this sector in the region.
This project will undoubtedly increase Nigeria's national revenue because demand for gas will
continue to rise. Natural gas currently accounts for more than 20% of global energy demand,
so demand for gas will undoubtedly increase over the next decade. Natural gas is used to power
thermopower plants, which produce electricity. It's also used for heating and other purposes.
It is one of the least expensive and most environmentally friendly fossil fuels.
In southern Europe, there is already competition.
They have gas supplies from Russia as well as the trans-Adriatic pipeline from Azerbaijan.
Nonetheless, the Nigeria-Morocco pipeline will promote healthy competition and increase gas
supply security in southern Europe. As a result of this competition, price reductions are expected.
The funding for this massive 25-billion-dollar project is unknown for the time being,
but large projects of this magnitude are typically not financially challenging. It will be Africa's
longest transnational pipeline, supplying natural gas to many African countries and Europe,
so many European banks will be eager to fund the project. The African Development Bank will
also support this type of project because it will bring much-needed natural gas closer to
many African emerging markets and economies, boosting their economies and creating jobs.
The project will also increase competition in Europe's gas supply. The overall impact of this
gas pipeline will be massive in the African countries through which it will pass. Many
countries that rely on natural gas imports will now have gas available in their own backyard.
This African project, however, is not without significant challenges. This initiative could lead
to more corruption and disastrous environmental issues, which are two of the main reasons for West
Africa's slow social and economic development. Furthermore, the pipeline appears to rekindle
cross-border tensions over natural resource exploitation. In March 2018, 40 non-governmental
organizations (NGOs) signed a joint declaration raising serious environmental, social,
and economic issues. Indeed, the construction of this pipeline would have significant environmental
consequences, as "increased extraction and consumption of fossil resources" is one of
the primary causes of climate change. The use of methane is still uncertain and volatile, and it
has the potential to disrupt marine life. These environmental consequences, in addition to the
risk of chemical waste and potential leaks on fisheries, would have a significant impact on
the livelihoods of millions of people, as has already occurred in Nigeria. Finally,
the difficulties are not only environmental and socioeconomic in nature. Indeed, many
armed groups, including Boko Haram, are present in Nigeria's Delta Region, which could disrupt gas
supply and distribution in neighboring countries [14]. Despite a frozen conflict in the region,
the pipeline is supposed to supply the Western Sahara region in Morocco. Technical difficulties
are also expected, as the 13 countries must seek governmental approval and legislative
alignment for the project, which will slow down implementation. Indeed, the pipeline between
Nigeria, Benin, Togo, and Ghana (WAGP) already took twelve years to complete, and the current
multiple geopolitical obstacles to the project will make it even more difficult for the new
project to come to fruition in the near future. The Nigerian-Morocco natural gas pipeline is
expected to be built in stages and could take up to 25 years to complete. Nonetheless, we eagerly
await the start of this massive project once the front end engineering design is completed.
Thank you for watching.if there are any tips you think should be on this list but is not,
leave a comment let us know. Help our channel grow. We hope this video has been
helpful to you. Support us by liking the video, subscribing and turning on your notification.