Morocco Expresses Interest in Possible LNG terminal

Morocco, seeking to diversify its coal-dependent energy sector, took the first step on Wednesday toward locating a liquefied natural gas terminal near the Mediterranean city of Nador.

Morocco's energy industry filed an expression of interest for the LNG terminal. The country is also pushing ahead with a renewable energy plan aiming to reach 52% of total installed capacity before 2030 from 45% now.

The terminal will be linked to an existing pipeline connecting Morocco to Spain as well as industrial zones in Mohammedia and Kenitra, in the country's northwest, the ministry said in a statement.

Morocco's natural gas needs are expected to increase to 8 bcm in 2027 from 1 bcm currently, according to ministry estimates.

The new infrastructure will also be connected to an under-development project that aims to connect Morocco to Nigerian gas fields, the statement added.

The Morocco-Nigeria pipeline, agreed in 2016, will stretch over 6800 km, including 5100 km offshore and is projected to cost $25 billion, according to energy ministry's answers sent to Reuters.

Morocco and Nigeria are preparing the setting up of a special purpose company that will look into technical and legal aspects of the project, the same source said.

The project, which has the backing of West African grouping ECOWAS, has passed the feasibility study and Front End Engineering (FEED) stages, it said.

The first phases of the project would connect Morocco to the gas fields offshore Senegal and Mauritania as well as Ghana to Ivory Coast. The second phase will connect Nigeria to Ghana and the last phase will link Ivory Coast to Senegal, the ministry said.