Morocco Re-launches $4.6 Billion LNG Import Terminal and Pipeline Project

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--As Morocco moves on a vigorous renewable energy build program, it is looking to diversify its energy sources and reduce oil and coal imports. But it needs a fuel feed for its base load power needs, and a feed that can complement industrial processing.

This energy scenario could be behind the government's decision to increase imports of liquefied natural gas (LNG) and build a $4.6 billion terminal at the industrial hub of Jorf Lasfar. The terminal was first suggested some years ago, but the implementation was stalled.

Negotiations with gas suppliers will take place in early 2015, and if these fail to produce the required results, tenders will be launched into the international market. "All the projects will be awarded via international tenders in total transparency," Energy Minister Abdelkader Amara said.

The current plan will see Morocco import up to 7 billion cubic meters (bcm) of gas by 2025. The project development will include a jetty, a terminal and pipelines with estimated investments of $600 million, $800 million and $600 million, respectively.

A re-gasification unit is being planned for Jorf Lasfar port, and the country's state-owned power utility has plans to build four 600-megawatt, gas-fired power stations near Tangier. Pipelines will feed industries in Jorf Lasfar and the developed regions of Casablanca and Tangier.

Currently, Morocco is consuming 1 bcm of gas, including 70 million cubic meters (mcm) produced locally, with gas representing only about 5% of its energy cost. It also imports 640 mcm of gas through the Algerian pipeline, which passes through the north of Morocco on its route to Spain.

For more information, see February 18, 2014, article - Morocco to Become Energy Exporter by Investing $11 Billion in Sustainable Projects.

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