The Chief Executive Officer of the Nigerian National Petroleum Company (NNPCL), Mele Kyari says the Nigeria-Morocco Gas Pipeline is set to receive an investment of $25 billion next year.
Although discussions on the financing of the energy megaproject are still ongoing, Kyari said that a final investment decision will be made next year.
The NNPC CEO did not mention the entity behind the investment in the 5,600-kilometre-long offshore pipeline that would travel across 11 African countries and eventually reach Europe.
With a cost estimated at $20-25 billion, the investment would cover the overall expenses related to the construction of the pipeline, Kyari said in an interview.
Construction would be in phases, the first would take three years, while the other stages would take five years to reach completion.
First conceived in 2016, earlier estimates indicate that that pipeline could take up to 25 years to become operational.
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.
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 Organisation of Petroleum Exporting Countries (OPEC). The investment is currently funding the project’s feasibility study also known as Front-End Engineering Design (FEED).
The pipeline represents a reliable source of employment and attracts investments to Africa.
While the pipeline could fulfil its purpose by transporting gas to Europe and Morocco, current plans will see it further its potential by crossing 11 African countries, fulfilling the energy needs of about 400 million people.