Benali ministry and IFC sign agreement

Benali ministry and IFC sign agreement

The Ministry of Energy Transition and Sustainable Development concluded an agreement on Monday with the International Finance Corporation (IFC), in Rabat.

This agreement aims to update the national natural gas roadmap and structure a public-private partnership (PPP) for the development of a sustainable gas infrastructure. This initiative will support Morocco in its energy transition by enabling it to achieve its objective of producing 52% of its electricity capacity from renewable energies by 2030, explain the two partners in a press release.

Due to its low carbon footprint and versatility, natural gas plays an essential role in Morocco’s decarbonization and energy transition strategy. By promoting the integration of intermittent renewable energies in the network, it will bring greater stability and efficiency to the national electricity system explains the same source, noting that natural gas is essential to decarbonize the industry by replacing fuel oil and other fuels still used in power generation and energy-intensive industries.

In 2022, Morocco succeeded in optimizing its existing regional infrastructure to access the international liquefied natural gas (LNG) market for the first time. The second phase of this strategy aims to strengthen domestic gas infrastructure in order to secure gas supply and connect supply sources to consumption centers.

As a member of the World Bank Group, IFC says it supports the ministry in feasibility studies, structuring and managing a transparent and competitive bidding process, in accordance with national laws. The objective is to select one or more private partners to develop, finance and operate this gas infrastructure, underlines the same source.

In this sense, Leila Benali, Minister of Energy Transition and Sustainable Development, quoted by the press release, declared that ” this project is perfectly in line with our sustainable development and energy transition strategies, and it is essential for strengthening our energy security. We wish to benefit from the capital and expertise of the private sector in order to build a gas market integrating the best international practices. In the long term, this modern and sustainable gas infrastructure will also form the basis of the future hydrogen economy. “.

In 2005, IFC supported the Moroccan Ministry of Agriculture in the design and implementation of the first public-private partnership project in the field of irrigation, in the citrus-growing region of Guerdane, in the province of Taroudant. With this new initiative, IFC will help the government update the necessary gas infrastructure in the short and medium term to take into account the latest national and international developments. This work will also integrate Morocco’s prospects for access to hydrogen, biogas and syngas in the longer term, with the aim of fostering inclusive and sustainable growth.

Morocco has embarked on the path to carbon neutrality, which requires rapidly increasing the share of renewable energy while combining other low-carbon energy sources, as well as the sustainable exploitation of gas natural. This partnership will enable Morocco to accelerate the deployment of innovative models, in particular public-private partnerships, and to put in place the essential infrastructures to achieve its development objectives and achieve its ecological transition. said Sérgio Pimenta, IFC Vice President for Africa.

This agreement between the IFC and the Ministry of Energy Transition is a major step forward in the construction of a modern and sustainable gas infrastructure, supporting the country’s energy transition.

Thanks to the expertise and resources of the private sector, Morocco will be able to strengthen its energy security, promote the use of low-carbon natural gas and develop a gas market in line with international standards.


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