Morocco Freezes Nador Gas Project as Spain Energy Dependence Deepens

The Ministry of Energy Transition surprised observers on Friday by announcing the suspension of the floating storage and regasification unit (FSRU) project at the Nador West Med port. This strategic reversal means that Rabat will, for the time being, continue importing its gas via the Maghreb-Europe Gas Pipeline (GME) from Spain. Last year, the Iberian neighbor supplied more than 35% of its gas exports to the Kingdom, a volume far greater than that shipped to France or Portugal.

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Although the ministry officially cites the emergence of “new parameters and assumptions” to justify the stoppage, internal friction within the executive is being highlighted. The Ministry of Economy and Finance is reportedly opposed to the project, having been alerted to the budgetary risks and legal uncertainties surrounding the development, estimated to cost at least 850 million euros. This deadlock reveals a divergence between the strategy of energy diversification and the financial discipline imposed by the country’s finance minister.

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This suspension does not, however, call into question the construction of the Nador West Med port complex itself, which is continuing. Designed to replicate the success of Tanger-Med, this logistics hub aims to compete directly with Spain’s port of Valencia. With an initial planned capacity of 5 million containers, the infrastructure seeks to capture an increasing share of maritime traffic in the western Mediterranean from its expected inauguration at the end of the year.

The rise of this new economic hub is causing concern on the other side of the border, particularly in Melilla. Authorities in the Spanish enclave fear the commercial impact of this neighboring giant, while also lamenting the continued closure of the commercial customs office since 2018, despite diplomatic promises to reopen it.