Morocco’s Preparations to Import Gas from Spain Quickly Progressing

Rabat – Morocco’s plans to import liquified natural gas from Spain through the Maghreb-European gas pipeline are rapidly progressing, according to the country’s National Office of Hydrocarbons and Mines (ONHYM).

After Algeria’s decision to sever bilateral relations with Morocco and terminate the pipeline contract, Morocco continued its efforts towards strengthening its energy partnership with Spain. The government is making necessary preparatory measures to reverse the flow of the Maghreb-European gas pipeline that previously sent gas from Algeria to Spain.

Africa Intelligence reported earlier this week that, “the significant rise in gas prices in Europe due to the Russian-Ukrainian war raises questions about Morocco’s decision to import gas from Spain after Algerian supplies stopped. The Moroccan authorities have slowed down the project of reversing the flow of the Moroccan-Spanish gas pipeline and installing a floating barge.”

The website further confirmed that the statutes of Metragaz, the company in charge of the maintenance and operation of the gas pipeline, have not changed and that its board directors “are still dominated by representatives of Naturgy, the Spanish group holding 76.8% of the company, ahead of the Portuguese Galp Energia (22.6%) and the National Office of Hydrocarbons and Mines (ONHYM), which owns only 0.68%.”

According to Le360, ONHYM has strongly denied these allegations and confirmed it has been fully supervising the Management of the Maghreb-Europe gas pipeline project since November 1.

Le360 added that ONHYM has been managing Metragaz and thus supervising the maintenance and insurance of the gas pipeline through a specialized team since February 1.

Metragaz has been responsible for the operation and maintenance of the Moroccan section of the Maghreb-Europe Gas Pipeline and its associated installations since 1996.

Before becoming a subsidiary of ONHYM, Metragaz was made up of three shareholders: Naturgy (77%), Galib Energia (22%), and ONHYM (0.68%).

Africa Intelligence’s report added that “the process of adapting the infrastructure may be delayed for a long while” since “no study of the project has been conducted, neither by OHNYM, nor Metragaz, nor the Spanish operator Enagas.”

This means it is highly unlikely that Morocco will start receiving gas from Spain this summer to supply its Beni Mathar and Tahaddart power plants, especially since the electricity consumption reaches its peak during the summer season due to the use of air conditioning.

But Le360 cast further doubt on Africa Intelligence’s conclusions. “Our source at the ONHYM has completely refuted these allegations,” assuring that the gas pipeline’s preparation has already occurred, wrote the Moroccan outlet.

After Algeria terminated its Maghreb-Europe Pipeline contract with Morocco, ONHYM and the National Office for Electricity and Drinking Water (ONEE) stated that Morocco made urgent arrangements to guarantee the continuity of the nation’s electricity supply.

Following supply chain issues and inflation caused by COVID-19, coupled with the Russian-Ukrainian war, the gas market witnessed a global crunch sending energy prices upwards.