Shell company has recently signed a 12-year agreement to supply liquefied natural gas (LNG) to Morocco, as announced by Morocco’s energy ministry.
Under this deal, Shell will supply 0.5 billion cubic metres (bcm) of LNG to Morocco’s electricity and water utility ONEE. Financial terms of the transaction were undisclosed.
The company plans to transport the gas from Spanish ports initially, using the Maghreb-Europe gas pipeline that links the two countries, until the completion of Morocco’s own LNG terminals.
ONEE will use the LNG to support the operation of its two power stations in northern and eastern Morocco. The two power stations used to operate on gas supplied by Algeria through the same pipeline.
ONEE intends to increase the gas share in Morocco’s electricity mix to meet low-carbon goals, reported Reuters, citing the ministry.
