Morocco’s Minister of Energy Leila Benali has called for about $1 billion investment in the country’s energy sector to build its LNG infrastructure as it aims to transition away from coal for power generation.
The construction of a gas pipeline linking the Nador West Med terminal, located on the northern coast, to the Maghreb-Europe gas pipeline will cost $273 million, report says.
According to the minister, the plan includes building a pipeline to Mohammedia port city at the cost of $638.7 million, alongside $42.5 million investment in developing a distribution network serving both Mohammedia and Kenitra.
These investments are part of Morocco’s gas development strategy unveiled earlier this year. It includes the setting up of LNG import terminals at ports and a pipeline network designed to supply industrial zones and power stations, the report says.
The announcement comes as the global energy market has been rattled by an escalation in regional geopolitical tensions as a result of the Israel-Iran conflict.
The country also plans to connect to gas terminals on the Atlantic coast and the proposed Nigeria-Morocco gas pipeline, which passes through 11 African countries and links to Europe.
Morocco currently uses one billion cubic meters of natural gas annually for electricity production. However, most of the LNG is imported, with only 100 million cubic meters produced in small domestic fields, which are nearing depletion.
The government is working on a draft law to regulate the storage, transport, and distribution of LNG, aiming to attract private sector investments, Benali says.
In April hydrocarbon-poor Morocco approved two new solar power plants with a combined generation capacity of 400 megawatts (MW) in addition to a 100MW battery-run power storage facility.
The country is also planning to invite bids for a giant power storage facility with a capacity of nearly 1,600MW.
According to Benali, renewable capacity was 5,304MW last year, accounting for about 44 percent of total power generation of 11,980MW.
