Morocco relaunches its project to build a floating LNG terminal in Nador West Med

Morocco relaunches its project to build a floating LNG terminal in Nador West Med
Morocco relaunches its project to build a floating LNG terminal in Nador West Med

FSRU. Credit: DR

Morocco plans to launch a tender this summer for the construction of a floating liquefied natural gas (LNG) terminal at the port of Nador West Med, Reuters reported, citing a presentation by oil chief Abdelghafour El Hadjaoui and gas from the Ministry of Energy Transition.

The ministry hopes to reach financial close in 2025, with construction, commissioning and commercial operations planned for 2026.

The LNG terminal will be connected to an existing pipeline that allows Morocco to import 0.5 billion cubic meters (bcm) of LNG from Spanish terminals each year, enough to power two small electricity generation plants.

As previously reported by The Desk, Chart Industries claims the upcoming installation of the first liquefied natural gas (LNG) regasification units in Morocco. The American company specializing in the design and manufacture of equipment for the clean energy and industrial gases markets, announced that it had received an order to provide the country with its first installations of this kind.

The selection of Chart Industries echoes the process launched since 2021, when the Department of Energy launched a call for expressions of interest (AMI) for the design and implementation of a maritime solution for the supply of natural gas from the national market by a floating storage and regasification unit (FSRU).

The call for demonstrations launched by the former Minister of Energy, Aziz Rebbah, had attracted the interest of several international companies and operators, creating enthusiasm which pushed the ministry to extend the period for consultation of offers. However, no update on the progress of the project was communicated, until the current Minister of Energy Transition, Leila Benali, announced in August 2022 the possibility of “ the cancellation of projects already launched such as the installation of a regasification barge “. This possibility, she explained, was considered because of the war in Ukraine and its repercussions on the energy sector and more particularly gas.

The AMI launched two years ago, placed the cost of the project with the option of floating barges at around 5 billion dirhams (billion dirhams). A little over a year ago, geotechnical studies for an LNG terminal in Mohammedia were initiated. Last July, an agreement with Shell was concluded for LNG deliveries over ten years, but always with regasification transit via Spanish ports and delivery assured by GME.

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