According to GlobalData, two major gas projects due to take final investment decisions (FID) in Morocco this year could contribute 70 million cubic feet per day (mmcfd) of natural gas to the country’s energy mix in the next five years, supporting the country’s goal of reducing reliance on coal and costly imports from Algeria.
Morocco Exploration & Production, a research published by GlobalData, suggests that the country is on the verge of unlocking its gas potential, despite the fact that it is not a big producer and imports the majority of its gas. In declared developments, the government possesses over 700 bcf of reserves.
Santiago Varela, upstream analyst at GlobalData, commented, “With the start of the first phase of Tendrara, which is expected to provide gas quantities by mid-2022 at a development breakeven price of less than US$5/mcf, productive growth is projected. Anchois was discovered in 2009 and is projected to start producing gas in 2024, making it Morocco’s largest gas development to date.”
Anchois operator Chariot Oil & Gas has struggled during recent years to convince investors to support the funding of the Anchois development. However, in the last year, the company successfully reprocessed seismic data that led to an upgrade of one tcf in recoverable resources. The company also claimed that Africa Finance Corporation and a Multinational Investment Bank had expressed interest in financing the project, as well as a memorandum of agreement for gas sales with the Moroccan Ministry of Energy.
“Morocco has failed to commercialise its large gas discoveries to yet, mostly because oil has been the chosen resource over gas,” Santiago stated. International operators are pushing hard to develop the country’s resources now that the focus has shifted to gas, an appealing fiscal framework, and strong domestic demand.”
“Although the economics of Tendrara and Anchois projects looks tempting, it is not yet clear whether the current operators will be able to finalise the necessary funding required to develop the fields. Securing capital is the final roadblock in the path for unlocking the country’s gas resources.”