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Economy

Morocco Secures Strategic Gas Supply Through ONHYM-ONEE Pipeline Agreement

Tuesday 22 October 2024 - 17:00

Morocco's energy infrastructure received a significant boost as the National Office of Hydrocarbons and Mines (ONHYM) and the National Office of Electricity and Drinking Water (ONEE) formalized a crucial natural gas transportation contract on Monday.

The agreement establishes a framework for supplying gas to ONEE's power plants via the Maghreb-Europe Gas Pipeline, marking a strategic shift in Morocco's energy procurement strategy. Under the new system, Morocco will import liquefied natural gas from international markets, process it through Spanish regasification terminals, and transport it back through the existing pipeline infrastructure.

This development represents a successful adaptation to regional changes, following Algeria's termination of the pipeline contract with Morocco in October 2021. The shift has proved remarkably effective, with Morocco emerging as Spain's primary gas export destination, accounting for 28% of monthly exports earlier this year.

Recent data from Cores indicates a dramatic increase in Spanish gas exports to Morocco, rising from 0.1% in June 2022 to 18.5% of Spain's total gas exports by June 2024. This surge demonstrates Morocco's successful pivot in securing alternative energy sources.

Energy Minister Leila Benali has confirmed that Morocco's entry into the international Natural Liquified Gas market effectively addresses the country's energy demands. The collaboration between ONHYM and ONEE has been particularly praised, with both offices' directors expressing satisfaction with their teams' coordination and service quality.

This agreement strengthens Morocco's energy security while showcasing its ability to adapt to changing regional dynamics. Through strategic partnerships and infrastructure utilization, Morocco has transformed potential energy challenges into opportunities for enhanced international energy cooperation.

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