Shell International Trading Middle East Limited FZE and the National Office for Electricity and Drinking Water (ONEE) have signed a twelve-year LNG supply agreement for 0.5 billion cubic meters per year.
In the first years, specifies the Ministry of Energy Transition and Sustainable Development, LNG will be supplied through Spanish ports and shipped to Morocco via the Maghreb-Europe Gas Pipeline. Then, the gas can be delivered through future Moroccan LNG terminals.
Morocco is committed to the decarbonization of several sectors, including electricity. The increase in the share of renewable energies in the national electricity mix generates a greater need for flexibility and requires access to competitive and low-carbon fuels such as natural gas, recalls the same source, noting that ONEE has thus more than 2 GW of gas power plants under development.
“The Kingdom of Morocco entered the international LNG market for the first time in 2022, thanks to exemplary cooperation and a climate of trust with our neighbours. This medium-term supply contract will strengthen our energy security, improve our competitiveness and accelerate our decarbonization strategy.”indicated in this sense the minister responsible, Leila Benali.
For his part, the Director General of ONEE, Abderrahim El Hafidi, underlined that“After making several LNG purchases on the spot market in 2022, we are today delighted with the signing of this agreement, which is ONEE’s first medium-term purchase contract on the international LNG market”.
“This agreement will allow us to meet part of our needs and guarantee the supply of natural gas to our power stations. Natural gas is now a major component of our electricity mix because it offers the flexibility needed to compensate for the massive introduction of renewable energies into our electricity system,” he added.
For his part, Mehdi Chennoufi, Head of Global Origination, Shell LNG Marketing and Trading, said he was delighted to “to work with ONEE and supply LNG to the Kingdom of Morocco to help meet the country’s gas demand. LNG offers a flexible and reliable source of energy and has a crucial role to play in the energy transition”.