Morocco's energy minister confirms plan to reserve flow of Maghreb-Europe pipeline

Morocco is seeking to repurpose the Maghreb-Europe Liquefied Natural Gas pipeline (LNG) linking the Kingdom to Spain, to import liquefied natural gas, according to Leila Benali, Moroccan Minister of Energy Transition and Sustainable Development, on February 2.

Morocco invited a select group of LNG traders to bid for contracts at the beginning of January, according to the official, who confirmed the news to the US news outlet, Bloomberg.

The government wants to sign deals of at least five years, with partners that will regasify Moroccan LNG fuel sent in cargos, which will then be piped across the Mediterranean to Morocco through the pipeline.

Since Morocco has no terminals to handle the LNG, the government is counting on its partners to deliver the LNG “as soon as possible,” as the country builds its own floating terminals to import LNG, the first of which will be at Mohammedia Port, according to the minister Leila Benali.

The reversal of the pipeline had been reported by Reuters and Moroccan media back in October, and the Moroccan energy minister confirmed the news to Bloomberg.

“Morocco has requested help to guarantee its energy security based on commercial relations, and Spain has responded positively to the request,” said the ministry in a statement to Bloomberg.

“Morocco will be able to acquire LNG in international markets, offload in a regasification plant in Spain and use the Maghreb gas pipeline to send it to its territory,” confirmed the official.

Spain holds nearly a third of European LNG regasification capacity, but only has a small pipeline connecting it with the rest of the continent. Its import terminals are also underutilized, meaning “they may have the capacity to take in gas for Morocco,” says Bloomberg.

For the plan to go ahead, “Spanish network operator Enagas SA would need to agree on an interconnection agreement with Morocco,” says the report.

Bloomberg reached out to Enagas but they have “declined to comment.”

Since Algeria halted gas flows through the Maghreb-Europe pipeline, which runs to Spain via Morocco, Morocco has been multiplying efforts to reach gas self-sufficiency, while pushing its plan for a green and clean energy transition.

With the recent Larache gas explorations bringing positive results, and the push for clean wind and solar energy plants, Morocco clearly has a medium to long-term gas and energy strategy.

But this new plan will be of considerable cost to the Moroccan government, the price of which exceeds direct Algerian imports.

Benali argued, however, that “Morocco needs to maintain its power production,” adding that “ensuring energy security is worth the premium.”