Sound Energy to Export Gas from Morocco to Spain after Algeria Halts Flows

Sound Energy, a British energy firm, has announced plans to commission a gas pipeline linking Morocco and Spain, in partnership with Afriquia Gaz.

This announcement comes a week after Algeria announced the termination of its collaboration with Morocco on the Europe-Maghreb pipeline.

The investment comes as part of Morocco’s implementation of new energy policies, which also includes installing renewable energy and increasing the use of natural gas by 2030.

Sound Energy aims to use the pipeline to supply Morocco’s market with natural gas, while exporting any excess to nearby countries such as Spain and Portugal.

As part of its 2022 budget, Morocco intends to invest more than 26 billion MAD in Morocco’s equipment and water infrastructure, Minister of Water and Equipment Nizar Baraka said recently.

Sound Energy plans to start the pipeline project by constructing a small natural gas plant in partnership with Italfluid. The company has also signed an agreement with Afriquia Gaz to start producing gas within the next 24 months.

The new infrastructure in the works is slated to be 120 kilometers long and hold a capacity of 67,000m³/h. In an official release, the company said that they have concluded all the necessary legal steps in Morocco to start operation.

Morocco also envisions constructing a gas pipeline connecting the Kingdom to Nigeria at some point in the future.

Algeria’s termination of the agreement of the Europe-Maghreb pipeline compounded concerns in Spain and Europe at large ahead of the winter season. In Morocco, meanwhile, experts and authorities say Algeria’s move will see little to no effects on Rabat’s energy needs.

In addition to the agreement with Sound Energy, Morocco had agreed to export energy to Britain last month, and other British energy companies such as Chariot Oil & Gas have been amping up their business in Morocco.