Morocco has signed a $1.6 billion deal with British energy giant Shell to supply the North African nation with liquefied natural gas (LNG) for the next 12 years.
The contract was inked between Morocco's National Office for Electricity and Drinking Water (ONEE) and Shell, according to the Ministry of Energy Transition and Sustainable Development.
Under the agreement, Shell will provide Morocco with 500 million cubic meters of LNG annually for 12 years, totaling 6 billion cubic meters.
The LNG will initially be supplied from Spanish ports and shipped to Morocco via the Maghreb-Europe Gas Pipeline.Later, the supplies will come directly from Morocco's future LNG re-gasification terminals.
The deal will help meet part of Morocco's energy needs and ensure gas supplies for power plants, ONEE director Abderrahim El Hafizi said.
Energy Minister Leila Benali said the medium-term supply contract would boost Morocco's energy security, competitiveness and accelerate its plan to reduce carbon emissions.
