[Curiosities] Access to Spain’s Regasification Facilities to Cost Morocco €2 Million Annually

[BirSaNN]

The North African country is set to pay Spain the same rate as other countries for gas, including France and Portugal.

Rabat - The Spanish government expects Morocco to pay an annual fee of €2 million for access to Spanish regasification facilities.

Spanish media said that the Spanish government announced the news in a parliamentary response to the Po[CENSORED]r Party.

Spanish news outlet The Objective recalled Morocco’s request to allow the possibility of transporting regasified gas from Spanish facilities to the North African country through the Maghreb Europe gas pipeline.

The rate Morocco is paying Spain is similar to what other countries pay for the European country’s regasification facilities, including France and Portugal.

The request came after Algeria’s decision to terminate the pipeline contract that supplied Spain with gas through Morocco in 2021, amid the ongoing diplomatic rift between Rabat and Algiers.

To this end, Morocco made a deal with Spain to use the country as a transition destination for natural liquified gas.

Reports said that since the deal came into effect, around 1,882  gigawatts per hour of gas have been transferred through the pipeline until mid-January, news outlet La Razon reported.

According to Spanish news outlet ABC, LNG imports have increased at an exponential rate since June 2022. The report, however, said that the gas output has reached 536 gigawatts per hour as of January 2023.

Gas imports continue to pose a challenge to Morocco’s economy.

Morocco’s gas subsidies reached MAD 22 billion or $2.1 billion at the end of last year. The number goes against previously projected figures that were estimated at $965.9 million.

The North African country’s energy price shock has been extended to fuel prices, which are estimated at MAD 13 and MAD 14 per liter compared to their previous prices (MAD 9 and MAD 10).

The skyrocketing prices sparked outrage among citizens, weighing down their purchasing power. Amid their frustration, many complained about lack of action from the government to tackle the situation.

link: https://www.moroccoworldnews.com/2023/02/354142/access-to-spains-regasification-facilities-to-cost-morocco-euro-2-million-annually