African Atlantic Gas Pipeline enters financing phase

The African Atlantic Gas Pipeline (AAGP) project, estimated to cost between $25 billion and $26 billion, has entered a critical phase of seeking private and multilateral financing. Morocco and its partners aim to reach a final investment decision by the fourth quarter of 2026.

During a high-level meeting in New York organized with the United Nations Development Programme, Moroccan Foreign Minister Nasser Bourita advocated for new mechanisms to reduce investment risks and attract long-term private capital for African infrastructure. He noted that Africa requires between $181 billion and $221 billion annually for infrastructure through 2030.

The 6,900-kilometer pipeline is designed to run from Nigeria through several West African nations to Morocco, with potential connections to European markets. It is expected to have a capacity of approximately 30 billion cubic meters of gas per year. While no new funding commitments were announced at the recent meeting, preliminary discussions are reportedly underway with international institutions, including the World Bank and the U.S. Export-Import Bank.