Morocco’s delay of $954m LNG terminal project in Nador sparks debate

The recent move taken by the Moroccan Ministry of Energy Transition and Sustainable Development to postpone the submission of bids for the planned liquefied natural gas (LNG) terminal and pipeline project at Nador West Med has sparked wide debate, Erem News reported on February 15. The project, estimated at $954mn, was intended to become a cornerstone of the country’s energy security strategy.

The Morocco Nador LNG project is a $1bn initiative to build the country’s first liquefied natural gas import terminal and a 1.2 GW power plant at the Nador West Med port. The project intended to secure energy independence by 2027 via a floating regasification unit (FSRU). 

The ministry cited what it called new criteria and assumptions for the delay, but provided no detailed explanation. The project aimed to establish an LNG import hub at the Mediterranean deepwater port, including a floating storage and regasification unit (FSRU) to supply two major power plants and key industrial zones along the Atlantic coast, notably in Mohammedia and Kenitra.

Morocco’s energy import bill reached MAD 114bn ($12.2bn) in 2024, before easing to MAD 99bn in 2025. Domestic gas production remains limited, at around 100mn cubic metres annually, compared with consumption of 1.2bn cubic metres.

However, the postponement comes as Morocco accelerates its push into renewable energy. According to Energy Minister Leila Benali, renewables accounted for more than 46% of the energy mix in 2025, with a target of 52% by 2030. Analysts point to the strategic implications of the planned Nigeria-Morocco Gas Pipeline, a $20bn project expected to transport gas across 11 countries to Morocco and onward to Europe, potentially reshaping Rabat’s long-term gas import strategy.