Shell and ONEE have signed an agreement for the annual supply of 0.5 bcm of LNG to Morocco, for 12 years. As per Morocco’s energy ministry, the LNG would be transported from Spanish ports via a gas pipeline connecting the two countries as Morocco works to construct its own LNG terminals.

Jul 20, 2023

Shell has signed a 12-year agreement to provide an annual supply of 0.5 bcm of liquefied natural gas (LNG) to Morocco, as per a statement by Morocco’s energy minister. The deal was reportedly signed by ONEE and Shell, and is aimed towards increasing Morocco’s gas supply and enhancing its electricity mix. In an early statement, the ministry stated that the LNG would be transported from Spanish ports via a gas pipeline connecting the two countries as Morocco works to construct its own LNG terminals. The agreement will allow ONEE to power two key stations in northern and eastern Morocco, previously relying on Algerian gas delivered through the same pipeline. 

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ONEE’s objective is to increase the share of gas in Morocco’s electricity production in line with the country’s low-carbon goals, as outlined by the ministry. As per official reports from 2022, renewables accounted for 18% of Morocco’s total electricity generation, while gas represented a mere 1.6% and coal dominated with 72%. As of March 2023, Morocco’s installed capacity for renewable energy had reached 40%, with the country aiming to raise that figure to 52% by 2030.