Morocco Aims to Boost Natural Gas Production, Reduce Energy Imports

According to GlobalData, a data and analytics company, Morocco intends to reduce its dependence on coal and costly imports from Algeria. The same source states that the kingdom, while not being a major gas producer, is about to exploit its gas potential.

"The country has nearly 700 billion cubic feet of reserves in the announced developments," explains Santiago Varela, an analyst at GlobalData, who indicates that "productive growth should materialize with the launch of the first phase of Tendrara, which plans to supply gas volumes by mid-2022 with a development breakeven price below $5/mcf." And he adds that "Anchois, discovered in 2009, is expected to produce the first gas in 2024 and will by far be the largest gas development undertaken in Morocco to date."

Varela also points out that the financing of the two projects is problematic, as the two companies responsible for their implementation have limited financial capacities. "Morocco has failed to develop its main gas discoveries to date, mainly because oil has been the preferred resource over gas," Valera also notes, stressing that "securing capital is the last obstacle to unlocking the country’s gas resources."