Morocco will issue new tenders to develop a liquefied natural gas (LNG) terminal on its Mediterranean coast “in due course,” a senior government official said, confirming that the $1 billion energy project remains on the table despite a temporary pause.
Mohamed Ouhmed, of the Energy Transition and Sustainable Development Ministry, told Bloomberg that “constant changes” in the global gas market have prompted a review of the project’s parameters and assumptions. He declined to provide further details on the market turbulence affecting the initiative.
The announcement follows Morocco’s surprise decision on Monday to indefinitely pause the project, which includes new pipelines connecting the Nador West Med port to major industrial areas. Global gas market volatility, driven by sharp price swings, geopolitical tensions, and speculative activity, has contributed to the delay.
Energy Minister Leila Benali told lawmakers that concerns from “public and private stakeholders” over potential monopolies and consumer pricing partly explain setbacks in Morocco’s LNG infrastructure plans. She added that ongoing reforms to state-owned hydrocarbon and mining agency ONHYM — which is set to become a joint-stock company — aim to ensure competitive energy prices.
The Nador terminal was designed to handle 5 billion cubic meters of LNG annually, more than four times Morocco’s current consumption of 1.2 billion cubic meters. The project is part of a broader $3.5 billion plan to raise national gas consumption to 12 billion cubic meters by 2030, including the potential development of additional Atlantic coast entry points.
