Morocco Seeks Medium-Term Gas Supply Contracts

RABAT (Reuters) — Morocco is in talks with Spanish and other gas traders to secure a medium-term supply deals, as it seeks to decarbonize its economy, Energy Minister Leila Benali said.

“We want to access the LNG market and ensure diversity and security of supply,” Benali said in an interview with Qatar's Al Attiyah Foundation published on its YouTube channel on Sunday.

Morocco relied for much of its gas needs - or about 1 Bcm annually - on a pipeline that used to channel Algerian gas to Spain, until it was halted last October by Algiers.

An energy ministry source told Reuters in October that Morocco was planning the reversal of the now halted pipeline to import gas using Spanish LNG terminals to supply two small electric powerplants in northern Morocco.

Morocco tendered in March for its own floating storage and regasification unit (FSRU) and picked the Atlantic Mohammedia port as a site.

However, the minister said the government was also considering a regasification land-based terminal as it seeks to boost gas infrastructure and unlock demand.

She said demand was expected to grow to 3 billion cubic meters by 2040, as the country pushes for low-carbon transition.

The share of renewables in installed capacity had grown to 45% last year and was expected to exceed 52% by 2025 with plans to install 10 GW capacity of renewable energy in the next few years, she said.

“The private sector is interested in Moroccan offshore wind to export electricity to Europe,” she said.

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