Morocco hopes to export energy to Europe long-term

Subject

Morocco's energy ambitions.

Significance

UK company SDX Energy is currently drilling the first of the last two of nine wells in Morocco, which if successful could open substantial new gas acreage for development. Last month, the company announced its fifth gas discovery in the country. Morocco is developing its renewable, coal and gas energy, looking not only to meet its own needs but also expand its export potential. The two main hopes are recent natural gas discoveries and dispatchable power exports generated primarily by renewables.

Impacts

• Rabat will need to continue to attract private investment to secure infrastructure and development capital.
• Moroccan fuel oil demand is expected to fall as renewable projects come online.
• The country’s anticipated LNG-to-power project could be delayed yet again, or even abandoned if recent gas discoveries prove promising.