Morocco plans to import liquified natural gas (LNG) using a pipeline that previously sent gas from Algeria to Spain. Morocco intends to use Spanish facilities to “regasify,” meaning to turn the liquified gas, intended for easy transport, back into gas for energy use.
Given that Morocco does not have the infrastructure to regasify LNG, Morocco intends to deliver the liquified gas to Spain by cargo. After regasifying in Spain, the gas will be piped across the Mediterranean to Morocco, according to the American benchmark business outlet, Bloomberg.
Morocco’s Energy Transition and Sustainable Development Minister, Leila Benali, opened a contract bid for a group of LNG traders, explaining that the Moroccan government is looking to sign a five-year contract minimum.
Benali told Bloomberg in a statement that Morocco sought the help of its European neighbor and trade partner to secure its energy needs, and Spain responded positively.
Morocco will secure LNG on international markets and ship it to Spain to regasify before piping it to Morocco through the Maghreb gas pipeline, details the statement.
Spain holds a third of Europe’s regasification capacity. And with Spanish import terminals running way under capacity, Spain facilities are well-equipped to handle the deal with Morocco, explains the same source.
Commenting on the news, Spain’s ecological transition ministry, announced that Spanish LNG terminals are open for Morocco.
The plan hinges on an interconnection agreement between Morocco and Spanish operator Enagas.
Following the first COVID-19 outbreaks, a global crunch in the European gas market has sent energy prices upwards. Political tensions in Eastern Europe did little to bring down gas and oil prices as Europe fears losing access to its primary gas supplier, Russia.
Morocco’s decision to switch to LNG comes months after Algeria announced it was terminating its contract supplying natural gas to Spain via a Moroccan pipeline.
Switching to LNG, will likely come with a bigger price tag, but ensuring energy security is “worth the premium,” as Bloomberg reports.
Original story on MWN