Morocco has launched tenders to establish its first LNG import terminal, a floating storage and regasification unit (FSRU) at Nador West Med port, with an ambitious operational target of 2027. This tight timeline significantly narrows the field for potential providers.

Project Specifications and Tender Process

The Ministry of Energy Transition & Sustainable Development has issued two tenders: one for the FSRU and another for a connecting gas pipeline network. The required FSRU must have a capacity of 5.1 billion cubic meters per annum, capable of supplying 7.5 Bcm during peak periods, and be able to receive Q-Flex-sized LNG carriers. The project, priced at 2.73 billion dirham ($294 million), involves the selected provider supplying the vessel and installing equipment on the jetty, with assets transferring to the port authority upon completion. Respondents have until 30 January to pre-qualify, with shortlisted candidates invited to bid in a formal tender launch in the first quarter of 2026.

Challenges of the 2027 Deadline

Meeting the 2027 start-up date is challenging. Industry specialists indicate that utilizing an existing regas unit or converting an LNG carrier into an FSRU is the only feasible path, as a full conversion typically takes 27 to 30 months from final investment decision to operation. This tight schedule may advantage providers who have already made progress, such as ordering long-lead items or having suitable tonnage readily available. Currently, only a handful of technically charter-free existing FSRUs are available, and not all will meet Morocco's specific requirements, though the pool of available units could expand if others are redelivered at the end of their charters.

Broader LNG Import Strategy and Demand Forecast

This Mediterranean terminal is part of a broader national strategy. Morocco is also planning a second LNG import terminal on its Atlantic coast at either Mohammedia or Jorf Lasfar and has discussed a third facility at Dakhla port to supply the southern region. This infrastructure expansion is driven by a forecasted dramatic increase in gas demand, projected to rise from 1.2 Bcm to about 8 Bcm by 2027 due to industrial and power sector growth and a shift away from coal. Demand is further expected to reach 12 Bcm by 2030.