Chart Industries to Install First LNG Regasification Units in Morocco: Strategic Energy Security Move

2023-12-30 01:31:00

An LNG regasification unit from Chart Industries. Credit: Chart

Chart Industries has announced the upcoming installation of the first liquefied natural gas (LNG) regasification units in Morocco. The American company specializing in the design and manufacture of equipment for the clean energy and industrial gas markets designs different types of terminals of this type

Chart Industries claims the upcoming installation of the first liquefied natural gas (LNG) regasification units in Morocco. In a press release, the American company specializing in the design and manufacture of equipment for the clean energy and industrial gases markets, announced that it had received an order to provide the country with its first installations of this kind.

This is a strategic choice for the energy security of the kingdom, which will now be able to store part of its LNG needs. This will allow it in particular to reduce its dependence on imports from Spain via the Maghreb-Europe gas pipeline (GME) used in reverse flow, but also to be protected from price fluctuations and disruptions that could impact global supply chains. ‘supply.

Chart Industries does not specify the characteristics of the facilities it will provide to Morocco. The company designs different types of LNG terminals equipped with floating storage units (FSU), but also floating storage and regasification units (FSRU) intended to store liquefied natural gas before it is regasified and transported by gas pipeline.

Although it remains to be discovered what type of installation the contract will specifically cover, the establishment of FSRU is among the projects on which the Moroccan authorities are working. The selection of Chart Industries echoes the process launched since 2021, when the Department of Energy launched a call for expressions of interest (AMI) for the design and implementation of a maritime solution for the supply of natural gas from the national market by a floating storage and regasification unit (FSRU).

The project aims to provide the country with storage infrastructure, in order to enable it to cope with developments in the energy market and ” various constraints, such as diversification, continuity and security of supply, competitiveness of its economy, price volatility and its negative impact, reduction of greenhouse gas emissions, etc. » by making natural gas available to consumers, particularly for electricity production and industry.

The call for demonstrations launched by the former Minister of Energy, Aziz Rebbah, attracted the interest of several international companies and operators, creating a enthusiasm which pushed the ministry to extend the period for consultation of offers. However, no update on the progress of the project was communicated, until the current Minister of Energy Transition, Leila Benali, announced in August 2022 the possibility of “ the cancellation of projects already launched such as the installation of a regasification barge “. This possibility, she explained, was considered because of the war in Ukraine and its repercussions on the energy sector and more particularly gas.

After this break, the project to install directly imported LNG regasification units is back on the agenda with the announcement from Chart Industries. The technical details, costs and deadlines for their implementation have still not been officially communicated by Rabat. The AMI launched two years ago placed the cost of the project with the option of floating barges at around 5 billion dirhams (billion dirhams). A little over a year ago, geotechnical studies for an LNG terminal in Mohammedia were initiated. Last July, an agreement with Shell was concluded for LNG deliveries over ten years but still with regasification transit via Spanish ports and delivery assured by GME.

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