Maroc - AFRICAZINE.COM - A la Une - 31/12/2025 12:03

African Pipeline Projects: What’s Holding Up Development?

Download logoWhile Africa possesses vast hydrocarbon resources, decades of underdeveloped infrastructure continue to limit the economic potential of its oil and gas sector. In 2025, several major pipeline projects exemplify both the promise of Africa's energy future and the persistent challenges that delay its realization. These projects are more than engineering undertakings—they are strategic levers for industrialization, regional integration, and economic transformation. The East African Crude Oil Pipeline (EACOP) remains the continent's most high-profile pipeline project. Stretching over 1,400 kilometers from Uganda's Lake Albert oilfields to the port of Tanga in Tanzania, the pipeline is set to bring East African crude to global markets for the first time. After years of uncertainty and repeated financing setbacks – including withdrawals by several international banks and insurers – the project finally secured the full $5 billion (https://apo-opa.co/4slDPFY) required in late 2025, backed by African lenders and development finance institutions. This breakthrough removes one of the project's most significant hurdles and restores momentum after periods of stalled progress. By mid-2025, construction had already reached roughly 60% completion, but the prolonged funding shortfall had threatened to slow the schedule. Even with financing now secured, EACOP underscores the delicate balance African energy projects must navigate: the promise of export revenues and industrial development on one hand, and the environmental, social and regulatory complexities of building a cross-border pipeline through sensitive landscapes on the other. In West Africa, Nigeria's Ajaokuta-Kaduna-Kano (AKK) (https://apo-opa.co/4slDPWu) gas pipeline is intended to channel gas from southern production fields to growing industrial hubs in the north – a cornerstone of the country's strategy to transform its vast gas reserves into a catalyst for domestic industrial growth. By mid-2025, the mainline was more than 70% complete, including complex engineering feats such as the River Niger crossing. Beyond the technical achievement, the project highlights broader structural challenges: ensuring infrastructure can safely and reliably function in regions affected by political instability, theft and sabotage. Once fully operational, the AKK pipeline is expected to supply 3.5 billion cubic feet per day, reducing flaring, supporting electricity generation and fostering industrialization across northern Nigeria. Meanwhile, the African Atlantic Gas Pipeline (AAGP), a transcontinental initiative linking Nigeria to Morocco and potentially Europe, represents Africa's most ambitious regional vision. The 5,660-km corridor, advancing toward construction as of August 2025, is intended to deliver billions of cubic meters of natural gas annually across West Africa. Its potential impact is transformative: supplying energy to hundreds of millions, promoting cross-border industrial development and positioning Africa as a strategic gas supplier to Europe amid global supply uncertainties. Yet the sheer scale of the AAGP highlights the persistent factors slowing African pipelines: securing long-term financing, coordinating multiple governments, navigating complex environmental and regulatory landscapes and managing security risks over thousands of kilometers. Across the continent, several common challenges explain why pipeline projects often move slowly. Financing remains critical: while investor appetite exists, projects are perceived as high-risk due to political, regulatory and security uncertainties, as well as shifting global energy dynamics. Technical complexity is another barrier, with pipelines traversing rivers, wetlands, deserts and other challenging terrain. Transnational coordination further complicates execution, requiring alignment across multiple jurisdictions. Security and operational risks, from sabotage to theft, continue to influence both investor confidence and project timelines. African Energy Week (AEW), scheduled to return to Cape Town from October 12-16, 2026, plays a vital role in addressing these challenges. The event provides a central forum for dialogue between governments, energy companies, financiers and international stakeholders, bringing together the decision-makers who can navigate regulatory frameworks, unlock investment and advance cross-border cooperation. In 2025, AEW discussions highlighted that while Africa's pipeline ambitions are technically feasible, progress now depends on coordinated action across policy, finance and engineering. Distributed by APO Group on behalf of African Energy Chamber.