Shell Supplies Gas to Morocco for 12 Years

The Moroccan Ministry of Energy announced today, Friday, that Shell will supply 500 million cubic meters of liquefied natural gas annually to the kingdom under a 12-year agreement. The ministry stated in a statement that the National Office of Electricity and Potable Water signed the agreement with Shell, without disclosing the financial terms of the deal. The agreement aims to increase the share of gas in Morocco's electricity mix to achieve carbon emission reduction goals. The ministry indicated that the gas will be shipped in the initial years from Spanish ports using a pipeline that connects the two countries until Morocco builds liquefied natural gas terminals. The LNG will aid the National Office of Electricity and Water in operating two power plants in northern and eastern Morocco, which were reliant on Algerian gas delivered via the same pipeline. Official figures showed that renewable energy sources accounted for 18 percent of Morocco's total electricity production last year, while gas made up only 1.6 percent and coal constituted 72 percent.