Morocco and Shell are In a 12-year gas agreement
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Roshan Amiri
- . July 17, 2023
- . Update: July 17, 2023 8:20 pm
A recent agreement states that the multinational energy company Shell will supply Morocco with six billion cubic meters of liquefied natural gas (LNG) over the course of a period of twelve years.
A contract was signed in Rabat by representatives of the British business and Morocco’s national electricity authority, ONEE, according to a statement from the ministry.
The agreement calls for Morocco to receive 500 million cubic meters of LNG every year. The 12-year contract’s value has not been made public.
The Maghreb-Europe Gas Pipeline (GME) and Spanish ports will serve as the gas’s initial points of delivery. It will eventually be transported via LNG terminals in Morocco that are in the works.
Since neighboring Algeria stopped supplying natural gas through the GME in November 2021 and severed ties over the disputed territory of Western Sahara, Morocco has worked to diversify its energy sources.
The agreement with Shell will “address part of our needs and ensure the supply of natural gas to our power plants,” according to ONEE CEO Abderrahim El Hafidi.
This medium-term supply contract will strengthen the kingdom’s energy security and increase its competitiveness by hastening the Moroccan decarbonization strategy, according to Leila Benali, Morocco’s minister of energy transition and sustainable development, who was quoted in the statement.
