Gas will be shipped in the first years from Spanish ports using a gas pipeline linking the two countries
Dubai – Al Arabiya.net
Posted on: July 15, 2023: 10:14 AM GST Last updated: July 15, 2023: 01:42 PM GST
The Ministry of Energy in Morocco announced that Shell will supply 500 million cubic meters of liquefied natural gas annually to the Kingdom under a 12-year agreement.
The ministry added in a statement that the National Office of Electricity and Drinking Water signed the agreement with Shell, without disclosing the financial terms of the deal.
The ministry indicated that the gas will be shipped in the first years from Spanish ports using a gas pipeline linking the two countries until Morocco builds LNG terminals, according to Reuters.
The LNG will help the National Electricity and Water Office operate two power plants in northern and eastern Morocco that were dependent on Algerian gas coming through the same pipeline.
And Algeria decided unilaterally in 2021 to stop pumping gas to Spain through the pipeline that passes through Morocco. Rabat said it would change the direction of the flow in 2021 by importing LNG from Spanish ports.
The ministry said that the National Electricity Office aims to increase the share of gas in the Moroccan electricity mix to achieve the goals of reducing carbon emissions.
Official figures showed that renewable energy sources accounted for 18% of Morocco’s total electricity production last year, while gas accounted for only 1.6% and coal 72%.
By March 2023, renewable energy accounted for 40% of the country’s installed capacity, and Morocco plans to increase this to 52% by 2030.
2023-07-15 06:14:00
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