Morocco has paused its plan to build a natural gas pipeline connecting a future LNG terminal at Nador West Med port to existing infrastructure, following objections from the finance ministry, according to sources and a document seen by Reuters.
The energy ministry said on Monday the public private partnership project to connect the Nador West Med LNG terminal to pipelines supplying Spanish LNG terminals and two domestic power plants had been put on hold under “new parameters and assumptions,” without providing further details.
According to Reuters, the finance ministry objected to the tender over procedural concerns, fiscal risks, and uncertainty surrounding a new gas law.
The ministry said in the document that it “reiterates its commitment to continue supporting this project” and is ready to resume evaluation once the necessary conditions are met.
The finance ministry vetoed the project based on an opinion issued Jan. 20 by the commission in charge of approving public-private partnerships.
The document cited concerns over budget sustainability, the distribution of risks between public and private entities, and unclear oversight of the project.
Rachid Ennasiri, director at independent climate think tank IMAL, told Reuters that putting the pipeline on hold “may prove a prudent risk-management decision in a context of volatile fossil-fuel prices and shifting gas markets.”
He said Morocco’s energy interests lie in expanding domestic renewables and avoiding long-term gas lock-in.
Morocco is seeking to reduce its reliance on coal, which accounted for 60% of electricity production in 2024, while increasing renewables to 52% of installed capacity by 2030, up from 45% currently.
Morocco’s gas demand is expected to rise to 8 billion cubic meters by 2027 from about 1 billion cubic meters today. Morocco imports most of its gas from Spanish LNG terminals through pipelines previously carrying Algerian gas.
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