Morocco launches nearly US$1bn tenders for first LNG terminal and national gas pipeline

Africa

Morocco has launched two major international tenders worth almost US$1 billion to build its first liquefied natural gas (LNG) import terminal and a national gas pipeline network, the Ministry of Energy Transition said.

The tenders cover a floating storage and regasification unit (FSRU) at the new Nador West Med port, as well as the design, construction and operation of gas pipelines linking the terminal to the Maghreb–Europe Gas Pipeline (MEGP) and key industrial zones. The total investment is estimated at MAD 9.54 billion (US$954 million).

The first tender seeks an operator to charter an FSRU for Nador West Med and install the required topside equipment before transferring it to the port authority. The LNG station, which will feed into the MEGP, carries an investment of MAD 2.73 billion (US$273 million). The second tender involves new pipelines linking Nador to Kenitra and Mohammedia, with the main trunk to Mohammedia alone valued at MAD 6.39 billion (US$639 million).

More than 80 international firms have expressed interest, highlighting strong global appetite for Morocco’s plan to build a national gas corridor. Candidate prequalification for a restricted tender will open before the first quarter of 2026 under Morocco’s public-private partnership law.

The terminal will be able to receive Q-Flex LNG carriers of up to 215,000 m³ and regasify 5.1 billion cubic metres of gas annually, expandable to 7.5 bcm in peak periods.

Ramping up demand

Morocco is racing to expand gas import capacity as demand surges from 1.2 bcm today to a projected 8 bcm by 2027. The jump is driven by plans to convert existing thermal power stations to natural gas, rising industrial needs and gradual efforts to shift away from coal and fuel oil.

By 2030, national demand could reach 12 bcm, a scenario that would require a second LNG import terminal on the Atlantic coast, likely at Mohammedia or Jorf Lasfar. Authorities are also studying an additional offshore platform near Dakhla to supply the southern regions.

The Nador–MEGP–Mohammedia corridor will form the backbone of Morocco’s future gas grid, ensuring secure supply to industry and power plants and integrating new maritime terminals with existing infrastructure.

Energy transition strategy

The tenders follow a feasibility study completed under Morocco’s 2025–2030 gas roadmap, which aims to rapidly build the country’s first integrated gas system as part of broader efforts to reduce emissions and diversify energy supplies.

Morocco has had limited access to natural gas since relations with Algeria deteriorated in 2021, resulting in the closure of the MEGP route. Rabat has since sought LNG imports to feed its power plants via Spain, but the lack of domestic infrastructure has restricted volumes. The new FSRU and pipelines are designed to end that dependence.

Applications for the FSRU tender are due on 30 January 2026, with bids opening on 2 February. Authorities expect to draw up a shortlist by the end of the first quarter of 2026, keeping the project on track for first gas in 2027.

Morocco’s gas supply gap after Algeria pipeline shutdown

Morocco’s push for LNG infrastructure comes after Algeria halted gas flows through the Maghreb–Europe Gas Pipeline (MEGP) in 2021, following the breakdown of diplomatic relations.

  • Until then, Morocco received gas through the pipeline as transit fees.
  • The shutdown left the country almost entirely dependent on imported fuel oil and coal for power generation.
  • Rabat has since relied on small LNG cargoes regasified in Spain and shipped back through the MEGP in reverse flow, but this option cannot meet future demand.

The new FSRU and national pipeline network are meant to permanently replace that lost supply.

Expanded Background

1. Strategic Need After Loss of Algerian Gas

Morocco’s race to build LNG import capacity stems directly from the collapse of its long-standing energy arrangement with Algeria.

  • For two decades, Rabat relied on the Maghreb–Europe Gas Pipeline (MEGP), which carried Algerian gas to Spain via Morocco.
  • Morocco received around 600–800 million cubic metres of gas annually as transit fees—crucial for running its combined-cycle power plants.
  • In 2021, amid a sharp diplomatic rift over Western Sahara, Algeria ended the supply contract and stopped all flows through MEGP.

The sudden loss of gas left Morocco scrambling to keep key power stations operating, accelerating plans to diversify supply routes.

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