Morocco and Shell Sign 12-Year LNG Supply Agreement to Enhance Energy Security
RABAT: The energy ministry of Morocco has announced a significant agreement with global energy giant Shell, aimed at ensuring the supply of liquefied natural gas (LNG) to the nation. The deal, which spans over 12 years, will see Shell provide six billion cubic meters of LNG to Morocco.
Contract Signing in Rabat
Representatives from Morocco’s national electricity authority, ONEE, and the British firm, Shell, formally signed the contract in Rabat, solidifying their commitment to this major energy partnership.
Annual LNG Delivery
Under the terms of the agreement, Morocco is set to receive an annual delivery of 500 million cubic meters of LNG. While the specific financial details of the deal have not been disclosed yet, it is expected to be a substantial investment.
Diversification of Energy Sources
Morocco’s pursuit of diversifying its energy sources is a key motivation behind this partnership. In November 2021, neighboring Algeria ceased its natural gas supply to Morocco via the Maghreb-Europe Gas Pipeline (GME) following a diplomatic dispute over the Western Sahara territory. This event prompted Morocco to seek alternate energy arrangements, leading to the collaboration with Shell.
Gas Delivery Routes
Initially, the LNG will be delivered through Spanish ports and the existing GME pipeline. However, the long-term plan involves the development of Moroccan LNG terminals for more direct deliveries.
Meeting Energy Needs
Abderrahim El Hafidi, the Chief of ONEE, expressed his optimism about the agreement, stating that it would partially meet their energy needs and ensure a reliable supply of natural gas to power plants.
Enhancing Energy Security and Sustainability
Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development, highlighted the significance of the deal in strengthening the country’s energy security. She emphasized that the medium-term supply contract aligns with the nation’s decarbonization strategy, enhancing its competitiveness in the global energy landscape.
Published in PakWeb, July 16, 2023.
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