2024-01-27 14:30:45
Morocco faces a risk of fuel shortage following the suspension of liquefied natural gas (LNG) deliveries by a foreign company, which cites security reasons linked to the explosive situation in the Red Sea. This decision, which comes in a context of regional tensions and armed conflicts, might have negative repercussions on the national energy market, the energy transition strategy and the economic stability of the country.
In a written question from a PJD MP, addressed to the Minister of Energy Transition and Sustainable Development, Leila Benali, who will have to explain herself to Parliament on this matter. The MP calls on the government to clarify the consequences of the suspension of LNG deliveries on the national fuel market, supply and distribution chains, sales prices and the national energy strategy. She also asks what measures the government will take to overcome problems and fluctuations in energy market supply.
According to the written question, the foreign company, whose name was not disclosed, signed a 12-year contract with Morocco to supply 500 million cubic meters of LNG per year, or around 10% of national consumption. gas. The objective of this contract is to increase the share of natural gas in the electricity mix, which is currently 20%, and to reduce greenhouse gas emissions, in accordance with Morocco’s commitments under the Paris climate agreement.
The foreign company, however, has indefinitely suspended all its shipments via the Red Sea, which is the shortest and most economical sea route for transporting LNG from the Middle East to Morocco. She justifies this decision by the tensions experienced by maritime transport in the Bab al-Mandab Strait, which connects the Red Sea to the Gulf of Aden and the Indian Ocean. This strait, which is one of the most strategic and busiest crossing points in the world, is the scene of recurring attacks by Yemen’s Houthi rebels, who target ships linked to Israel.
The Houthis, who control part of Yemeni territory, are carrying out their attacks to protest continued Israeli attacks once morest the Palestinian civilian population in the Gaza Strip, which have left more than 25,900 Palestinians dead, most of them children and women, since the beginning of October. The Houthis accuse Israel of supporting the Arab coalition led by Saudi Arabia, which has intervened in Yemen since 2015 to restore the power of President Abd Rabbo Mansour Hadi, recognized by the international community.
The crisis in the Red Sea, which pits the Houthis once morest the Arab coalition and Israel, has significant geoeconomic consequences for Africa and Morocco, which depend heavily on maritime trade for their supply of energy and goods. According to the International Maritime Organization, approximately 6.2% of global crude oil trade and 10.3% of global LNG trade pass through the Bab al-Mandab Strait. Additionally, around 21,000 ships pass through this strait each year, transporting goods between Europe, Asia and Africa.
The suspension of LNG deliveries by the foreign company might therefore have negative effects on the Moroccan fuel market, which might face a shortage or an increase in prices. It might also undermine Morocco’s energy transition strategy, which aims to diversify its energy sources and reduce its dependence on oil and coal imports. Morocco, which imports 95% of its energy needs, is seeking to develop the natural gas sector, which offers advantages in terms of cost, flexibility and respect for the environment.
To counter the risk of shortage which might affect Moroccan households, the government will have to find alternative and rapid solutions in order to avoid effects like those linked to the start of the war in Ukraine. The government should also endeavor to guarantee the supply of the national energy market, by exploring other maritime or land routes, by renegotiating the contract with the foreign company or by seeking other LNG suppliers. The government will also need to strengthen maritime security in the region, by cooperating with countries bordering the Red Sea and international organizations, to prevent and deter attacks on civil and commercial vessels.
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