Morocco’s energy ministry announced that Shell has entered into a new agreement to provide the country with six billion cubic meters of liquefied natural gas (LNG) over a span of 12 years.
In a statement, the ministry confirmed that representatives from Morocco’s national electricity authority, ONEE, and the British firm have signed a contract on Friday in Rabat.
As part of the agreement, Morocco will receive an annual delivery of 500 million cubic meters of LNG.
The value of the 12-year deal, however, has not been disclosed.
During the initial years of the agreement, the gas will be transported via Spanish ports and the Maghreb-Europe Gas Pipeline (GME). Eventually, as planned Moroccan LNG terminals are established, the gas delivery will transition to those terminals.
In light of Algeria ceasing its supply of natural gas through the Maghreb-Europe Gas Pipeline (GME) in November 2021, following the termination of relations over the disputed Western Sahara territory, Morocco has actively pursued the diversification of its energy sources.
According to ONEE chief Abderrahim El Hafidi, the agreement with Shell will “address part of our needs and ensure the supply of natural gas to our power plants”.