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The dependence of fossil fuel imports has obvious consequences for the national economy

Morocco relies on imports of all fossil fuels, which has "obvious consequences" in terms of energy security and the national economy, notes the International Energy Agency (IEA).

Fossil fuels occupy an important place in Morocco's energy mix with almost 90% of total primary energy supply (ATEP) and 80% of electricity supplies.

In 2017, oil represents 62% of ATEP, followed by coal (22%) and natural gas (5%), the IEA said in its report on the energy outlook for 2019.

In 2017, energy import accounts amounted to $ 7.3 billion, the IAEA said, adding that the current oil and gas production has remained "insignificant" but the oil and gas exploration program run by the National Hydrocarbons Service and mines (ONHYM), promotes upstream investment.

The discovery of gas in the area under Tendra's license from British sound energy, as well as the deep-water exploration of the Italian Enny, gives hope for promising developments. In addition to crude oil, Morocco is already importing all its petroleum products.

Samir, the only refinery still operating in Morocco, was bankrupt in 2015. The failure to use oil storage facilities at the Samir refinery and the failure of petroleum product distributors to meet their petroleum product storage obligations several years have highlighted the need to improve security of supply of petroleum products, the authors of the IEA report recommend.

For the IEA, Samir's closure has "obvious implications for the security of oil supplies," so Morocco is increasingly exposed to the risks of the global supply chain, covering less than the legal minimum for all products.

In order to strengthen oil security agreements, the government will need to improve the mechanisms for collecting data on oil reserves and ensure future availability of oil storage tanks in the refinery, the report said.

The supply of Algerian natural gas will depend on the decision to be taken to maintain the Maghreb-Europe gas pipeline agreements and to extend this agreement beyond 2021.

In the long run, Morocco, which is planning to increase its share of natural gas, plans to use several new routes for gas supply, including imports through a shared gas pipeline with Nigeria, and the construction of a new gas pipeline. The LNG terminal, which will provide more flexibility in terms of contracts and public procurement, highlights the IEA.

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