African states sign landmark deal on giant gas pipeline to Europe

African states have signed an intergovernmental agreement on the African Atlantic Gas Pipeline, which is to run from Nigeria along the West African coast to Morocco and connect to the European market. Nigeria has the largest natural gas reserves on the African continent, but currently supplies only two percent of the European Union's gas imports. The multibillion-dollar project has yet to secure financing. Nigeria is also pursuing another gas pipeline along an alternative route.

The heads of state of member countries of the Economic Community of West African States (ECOWAS) have signed an intergovernmental agreement to support construction of the Nigeria-Morocco gas pipeline. The project, known as the African Atlantic Gas Pipeline (AAGP), was agreed 10 years ago, Amina Benkhadra, CEO of Morocco's ONHYM, told Reuters. The acronym stands for the Office National des Hydrocarbures et des Mines, or National Office of Hydrocarbons and Mines. In February this year, it became the first major public institution in the country to adopt corporate status by converting into a joint-stock company, according to the African Press Agency. An official statement said the aim of the change was to diversify funding sources, improve performance and significantly increase the value of the country's natural resources.