Morocco has suspended a $1 billion plan to build a liquefied natural gas (LNG) terminal at its new Nador West Med port, halting a bidding process that had drawn attention from dozens of international energy firms.
The decision, announced by the Ministry of Energy on Monday, follows a high-level meeting between King Mohammed VI and energy officials in Casablanca. The government said it needed to review technical and economic aspects of the project, though the move has surprised industry observers given the rush of companies eager to participate.
The terminal was set to handle 5 billion cubic metres of gas annually, more than four times Morocco’s current consumption. It would also have linked to the Maghreb-Europe pipeline via a 140-kilometre network, supplying major industrial hubs including Kenitra and Mohammedia.
Interest had been strong. About 80 international companies responded to the December call for bids, including US energy majors, Spain’s Enagás, France’s TotalEnergies, and Turkish firms ready to provide floating storage units. The ministry cited the need to reassess “new parameters” before proceeding.
The project is central to Morocco’s efforts to secure energy independence since its pipeline connection with Algeria was cut in 2021. Imports via Spain have sufficed in the short term, but the Nador terminal would give Morocco direct access to global gas markets. It forms part of a wider $3.5 billion strategy to nearly tenfold the nation’s gas use by 2030.
Construction of the wider Nador West Med port continues, with harbour walls and docks largely complete and the port still expected to welcome ships by the end of 2025.
The Ministry of Energy has not provided a date for resuming the bidding process but promised a full review.
