Rabat: Rabat and global energy giant Shell on Friday signed an agreement under which Shell will supply six billion cubic meters of liquefied natural gas (LNG) over 12 years, Morocco’s energy ministry confirmed.
Representatives of Morocco’s National Electricity Authority, ONEE, and the British firm signed a contract in Rabat, the ministry said in a statement.
According to the details, the agreement includes the annual delivery of 500 million cubic meters of LNG to Morocco. The value of the 12-year deal has not yet been disclosed, AFP informed of.
In the initial years, the gas will be delivered through Spanish ports and the Maghreb-Europe Gas Pipeline (GME). It will eventually be delivered through planned Moroccan LNG terminals.
Morocco has sought to diversify its energy sources, especially since neighboring Algeria stopped supplying natural gas through the GME in November 2021 after breaking ties over the disputed Western Sahara region.
According to ONEE chief Abderrahim Al Hafidi, the agreement with Shell “will address part of our needs and ensure the supply of natural gas to our power plants”.
The statement quoted Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development, as saying that “this medium-term supply contract will strengthen the kingdom’s energy security and improve its competitiveness by accelerating the Moroccan decarbonization strategy.”