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Business News of Monday, 15 November 2021

Source: www.sunnewsonline.com

Morocco develops gas pipeline project for Nigeria

Pipeline Pipeline

The Government of Morocco says it has concluded plans to develop a gas pipeline project from Nigeria to Morocco through 13 countries.

It equally announced the setting up of a downstream division of state-owned ONHYM to manage domestic natural gas infrastructure.

A source at ONHYM who confirmed the development to S&P Global Platts said:

“It’s on the way,” the source, who asked not to be identified, said.

“It’s a new entity created to take care of the downstream business.”

ONHYM is in charge of the pipeline known as MNGP to take gas from Nigeria, which holds Africa’s largest gas reserves, to Morocco and then to the European market.

Morocco is also building networks to distribute gas to industry hubs where automobile and aeronautics industries are expanding, the person said.

“The industrial sector in Morocco is growing fast and gas will be an important part of this growth,” the source said and declined to comment on what Morocco plans to do to replace lost gas from Algeria.

Spain’s largest gas group Naturgy said on November 10 that it remained in talks with parties in Morocco and Algeria to potentially achieve an extension of the gas transit agreement for supplies of Algerian gas in the GME pipeline via Morocco to Spain.

Gas deliveries through the GME pipeline fell to zero on November 1 after the long-term transit deal between Algeria and Morocco was not renewed ahead of its expiry on October 31.

Morocco has estimated its resources at some 300 Tcf of conventional and unconventional gas in place and is seeking investors to explore and develop these resources. Rabat has received “a lot of interest” for its proposed floating storage regasification unit off the Atlantic coast, the ONHYM source said.

A project to deliver electricity generated from solar and wind to the UK is also under evaluation, the person said.

Morocco needs a big discovery offshore to attract more companies to explore the country, the source said.