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Morocco Puts LNG and Gas Pipeline Projects on Hold

Morocco’s energy ministry said on Monday that it has put on hold tenders launched last month for a planned liquefied natural gas (LNG) terminal and related gas pipeline projects, without explaining the specific reasons for the suspension.

The tender invited bids to build an LNG terminal at the Nador West Med port on Morocco’s Mediterranean coast, along with a pipeline to link the terminal to an existing gas pipeline, according to Reuters.

That existing line enables Morocco to import LNG through Spanish terminals and supply two power plants.

The tender also included a section of pipeline that would connect the current network to industrial zones on the Atlantic coast in Mohammedia and Kenitra.

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“Due to new parameters and assumptions related to this project… the ministry of energy transition and sustainable development is postponing the receipt of applications and the opening of bids received as of today,” the ministry said in a statement.

Morocco is seeking to increase its use of natural gas as part of efforts to reduce its reliance on coal, while at the same time speeding up its renewable energy programme.

The country aims for renewable sources to make up 52% of installed power generation capacity by 2030, up from 45% currently.

According to ministry estimates, Morocco’s natural gas demand is expected to grow to 8 billion cubic metres in 2027 from about 1 billion cubic metre now.

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Image Credit: Energy Capital & Power

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