Nigeria-Morocco Gas Pipeline Project: A White Elephant Project?

The Nigeria-Morocco gas pipeline project has been in the works since 2016 and is expected to increase Nigeria’s gas export capacity. However, there are concerns about the viability of the $25 billion project. Dan D. Kunle, an Energy Analyst and former Privatization Advisor at the Bureau of Public Enterprise, has called the project a political one with no economic value in the current state of the Nigerian gas industry. He suggests that a proper technical and financial study of the project’s economic life and financial earnings be carried out by leading investment banks and consultants.
Kunle also suggests that both countries explore investments in LNG plants and regasification facilities in the Morocco waterfronts, as well as Morocco investing in the LNG vessel carrier business to procure LNG from Nigeria and other parts of the world. He believes that the pipeline will limit Morocco’s access to multiple markets for liquid fuels, and they can instead use their vast solar resources to convert into liquid hydrogen for shipment to Europe.
Another alternative to building the Nigeria-Morocco gas pipeline is for Nigeria and Morocco to jointly develop Brass/Olokola LNG in the next 3 to 4 years, or for Morocco to invest in LNG vessel carriers to trade in LNG with Nigeria and other countries.
The project’s funding is also in question as the Buhari administration plans to exit office in less than 40 days. While the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, says the company is committed to the project, there is uncertainty about the project’s future.
In conclusion, the viability of the Nigeria-Morocco gas pipeline project is being called into question. Experts suggest that proper studies should be conducted, and alternatives explored, such as investments in LNG plants and regasification facilities, and the use of Morocco’s solar resources to convert into liquid hydrogen for shipment to Europe. While the future of the project remains uncertain, it is clear that there are viable alternatives that can achieve the same objectives of further enhancing Nigeria’s gas export capacity and increasing gas revenues.

© Nairametrics

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