Morocco is exploring the global market for liquefied natural gas (LNG) after Algeria ended gas supplies via a key pipeline, Bloomberg reported on Monday.
Following a year of worsening relations between Algiers and Rabat, before a pipeline deal expired on Oct. 31, Algeria said it would supply Spain through a different pipeline and would no longer send gas to Morocco.
Bloomberg quoted Moroccan Minister of Energy Transition and Sustainable Development Leila Benali telling parliamentarians that the government is preparing port infrastructure for imports of liquefied natural gas to boost reserves after Algeria ended gas supplies.
The infrastructure will help lower the cost of LNG imports for private operators, announced Banali.
Bloomberg noted that the purchase of supplies internationally comes at a time of increased prices amid concerns about shortages in several major consumer markets, especially in Europe.
Spain's imports of Algerian LNG, which was flowing through a major pipeline passing through Moroccan territory, stopped after the gas transport agreement ended in October.
Benali said the government plans to develop financial and gas supply details for a future floating storage and regasification unit (FSRU) that would guarantee all of Morocco's gas needs.
Morocco's local gas production is expected to reach 110 million cubic meters in 2021, while its annual consumption stands at 1 billion cubic meters. Most of it was once supplied by the halted pipeline.
Morocco's natural gas needs would triple to three billion cubic meters by 2040 as the country looks to LNG to boost its low carbon transition and address the irregular supply of renewables, Benali said.
