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Strictly private and confidential

The Energy Market in Morocco


Why is Energy Demand Growing in Morocco:
Key Figures and Drivers of Growth

Longreach Oil and Gas


Neil Hamzaoui – Commercial Manager
ir@longreachoilandgas.com
+44 203 137 7756
www.longreachoilandgas.com
Strictly private and confidential

The Energy Market in Morocco


- Why is energy demand growing in Morocco: key figures and drivers of growth

Table of Contents
1. Main figures and trends: ................................................................................................................. 3
1.1. Energy bill, consumption and dependence: ........................................................................... 3
1.2. Natural Gas ............................................................................................................................. 4
1.3. Energy demand and socio-economic development ............................................................... 6
2. A growing demand for electricity: .................................................................................................. 7
2.1. Energy consumption driven by need for electricity: ............................................................... 7
2.2. Electricity mix .......................................................................................................................... 8
2.3. Long-term forecasts & Moroccan energy policy:.................................................................. 10
3. Oil and Gas hungry infrastructures and facilities .......................................................................... 11
3.1. Oil & Gas fuelled electricity facilities .................................................................................... 12
3.2. Industry ................................................................................................................................. 13
3.3. A look on the supply-side: LNG facilities ............................................................................... 15
Conclusion: ............................................................................................................................................ 16

2
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1. Main figures and trends:

1.1. Energy bill, consumption and dependence:


 Morocco’s energy needs grow by 8%/year on average. In 2011, the Kingdom spent $10.7bn
The country is heavily dependent on external sources, importing up to 93% of its energy
supplies1. Oil and petroleum products account for the largest part of Morocco’s energy bill
(cf. Appendix for detailed statistics).

Energy bill and consumption in Morocco


80 140.00
70 120.00
60
100.00
50

MMboe
80.00
bDH

40
60.00
30
40.00
20
10 20.00

0 0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010

Crude oil and Petroleum products Coal


Electricity Consumption - MMboe

Energy balance (MMboe)


120.00
100.00
80.00
60.00
40.00
20.00
0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010

Total production O&G production


Total consumption Oil consumption
Natural gas consumption

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

1
Ministry of Energy, Mines, Water and Environment of Morocco, 2008.
3
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1.2. Natural Gas


 Morocco currently obtains almost all of its natural gas from its neighbour Algeria through
the Maghreb-Europe gas (MEG) pipeline which has linked Algeria with Spain through
Morocco since 1996. The gas is provided on the basis of a transit royalty in kind. The
Maghreb-Europe pipeline (MEG) underwent an extension started in 2003 and finished in
2005, blowing up the yearly capacity from 8.5 billion m3 (54.6MMboe) to 12.5billion m3
(80.3MMboe).

Natural gas consumption (MMboe)


7.00

6.00

5.00

4.00

3.00 Royalty from


MEG pipeline
2.00 Natural gas
consumption
1.00

0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

In 2005, natural gas effectively entered the energy landscape in Morocco with the Tahaddart
combined cycle gas turbine2 (CCGT) coming to stream. Morocco draws 500 million m3 of gas per year
(47.2MMcfd) from transit royalties in kind from the MEG pipeline to supply Tahaddart. The facility
has a net installed capacity of 384 MW and is located 30 kilometres from the city of Tangiers.

Other big projects calling for natural gas include the Ain Beni Mathar integrated solar combined
cycle plant which uses about 350 million m3 of gas per year (33MMcfd). Also Renault-Nissan’s
industrial complex “Renault Tanger Méditerranée” located near Tangiers should require 20 million
m3 of gas per year. The starting of these projects scheduled between 2009 and 2012 boosts
Morocco’s need for gas as it represents a bigger share in the country’s energy consumption mix.

2
Wikipedia: In a combined cycle power plant (CCPP), or combined cycle gas turbine (CCGT) plant, a gas turbine
generator generates electricity and heat in the exhaust is used to make steam, which in turn drives a steam
turbine to generate additional electricity. This last step enhances the efficiency of electricity generation. Many
new gas power plants in North America and Europe are of this type.
4
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 Morocco could seek diversification in gas supplies to cut down its reliance on the Algerian
sourced MEG line .(From The Economist Intelligence Unit, 2010)

The government is likely to harbour concerns about relying too heavily on Algeria for its
energy supplies, owing to the political tension between the two North African countries as a
result of Algeria's long-standing support for the Polisario Front, the main group campaigning
for the independence of the disputed territory of Western Sahara. The land border between
the two neighbours has been closed since 1994. It is not clear whether the imminent start-up
of the Medgaz pipeline, which runs directly from Algeria to Spain, will have an impact on the
volumes of gas sent through the MEG line.[cf Map in Appendixe for pipelines]

The Ain Beni Mathar plant is said to rely 95% on gas, despite the strong media coverage of its
solar component3. Tahaddart and Ain Beni Mathar cannot function in parallel because of
insufficient gas supplies in the country. This situation outlines how much Morocco depends on
Algerian gas currently which is serious concern for the Kingdom : Europe and Algeria are building
a new pipeline which will go directly from Algeria to Europe without transiting through Morocco,
making the future of the MEG’s and the current gas royalty rather uncertain.

 About Liquefied Natural Gas:


 Diversification into LNG
 SNI and Akwa, two Moroccan investment groups have jointly announced plans to
invest in a receiving terminal for LNG that would import between 5bn and 10bn cu
metres of gas per year [32 to 64MMboe/yr]. .(From The Economist Intelligence
Unit4, 2010)
 Policy in favour of national resources (From LaVieEco, digital business magazine
notorious in Morocco, 2003)

The [former] minister of energy and mines, Mr Boutaleb, claims that the private sector will
solely bear the costs of building infrastructures for the transport, reception and
transformation of LNG.

The [former] minister insists that in case of the discovery of natural gas in Morocco, national
production would hold priority over other supply sources in terms of integration of the
national infrastructure for gas.

Note: it is worth pointing out that according to the article from LaVieEco dating back from 2003:

 high costs related to gas transport are a determinant parameter in implementing Morocco’s
energy policy / gas commercialisation.
 Sources at ONE5 allegedly confirmed that Mohammedia’s gas turbines were initially meant
to be connected to the MEG line. Because no party wanted to share the costs of a
connecting line with ONE, they decided on building a new power plant near the MEG.

More about facilities in part 3.

3
Source: Economie Entreprises, Jan 2012 (Moroccan economy and business monthly journal)
4
Source: Views Wire
http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=1957189580&refm=vwHome&page_tit
le=Latest%20analysis&rf=0
5
Office National de l’Electricite, state-owned electricity distribution and production company
5
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1.3. Energy demand and socio-economic development

 The energy bill rises at a steady pace as a consequence of climbing oil prices as well as
internal growing energy consumption. This report will focus on internal drivers of energy
consumption in Morocco and stress the importance for Morocco to develop national energy
resources. The following graph shows that regardless of the market, Morocco consumes
more energy every year, and Moroccans follow that same trend.

Evolution of energy bill and consumption in Morocco


400%

350%

300%

250%

200%

150%

100%
2002 2003 2004 2005 2006 2007 2008 2009 2010

Oil price - WTI Energy bill


Energy consumption Consumption/hab

Source: Ministry of Energy and Mines of Morocco - Key figures 2010, International Monetary Fund

 According to the Moroccan Ministry of Energy and Mines (MEM)


 The consumption increase should be appreciated positively as a sign of industrial
and economic development.
 Energy is a vector of social development, making access to energy a key objective in
favour of a better integration of the population (ndlr: rural zones, areas in
development).

 Numbers on social and economic development


 Pop. 1.1%/yr increase equal to global average.
 GDP growth: 4.3%.
 GDP by sector - agriculture: 17.1%; industry: 31.6%; services: 51.4% (2010 est.)
 Morocco is part of the top 10 performing countries in terms of HDI progression6.

6
United Nations Development Program - Human Development Report, 2010
6
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2. A growing demand for electricity:

2.1. Energy consumption driven by need for electricity:


 Economic expansion and social development reflect in increasing need for electricity.

180%

170%

160%

150%

140%

130%

120%

110%

100%
2002 2003 2004 2005 2006 2007 2008 2009 2010

Total energy consumption Electric energy called


Oil & Gas consumption

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

Energy consumption is up to 16.1ktoe in 2010, on a rise which is heavily driven by a growing demand
of electricity7. Electricity consumption has grown at an average rate of 7% per year for the past ten
years (ONE,MEM), essentially because of the generalised access to electricity and the country’s
economic and industrial development.

 Access to electricity over the territory has dramatically expanded, as a result of the PERG8
programme;
 PERG is a state programme started in 1996 aimed at providing electricity throughout
the whole territory in rural areas.
 Morocco via ONE implied a budget of DH20bn (approx.. US$2.3bn) to build
electricity transport infrastructures as well decentralized electric production
facilities.
 The programme benefited to 11.5 million citizens, achieving a “rural electrification
rate” of 96.8% up from 18% when the programme started. ONE affirms that the
PERG is fostering local industrialisation and demand for energy.

 ONE Distribution sales to Domestic clients has increased by as much as 8.1% over
2008-2009. ONE saw its clients portfolio increase by 6.2% from 2008-2009, while
ONE distribution increased by 5.92%.

7
Ministry of Energy, Mines, Water and Environment of Morocco, 2008.
8
Programme d’Electrification Rurale Global
7
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 Industrialisation and economic growth:


 Electricity sales to VHT, HV, MV accounts increased by 5.3% over 2009-2010,
 40+% of total ONE Distribution WH is attributed to the Industrial and Agriculture
sectors in 2010.

MWh
2008 2009 Variation Share
08/09
Industry 2,374,900 2,486,209 4.7% 27.8%
Agriculture 1,171,609 1,220,250 4.2% 13.7%
Services 1,059,303 1,151,774 8.7% 12.9%
Residential 3,229,615 3,491,178 8.1% 39.1%
Administrative 598,635 582,916 -2.6% 6.5%
Total 8,434,062 8,932,327 5.9% 100.0%
Source: ONE – Annual report 2009

2.2. Electricity mix


 Fossil fuels are a major source of electricity production: thermoelectricity accounts for
almost 2/3 of electricity in 2010.

ONE electricity production mix (GWh)


12000

10000

8000

6000

4000

2000

0
2002 2003 2004 2005 2006 2007 2008 2009 2010

Hydro power Thermic Wind power

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

Coal is the most used fuel to generate electricity, and Morocco imports 100% of its coal needs.
Despite the fact that coal is cheap and globally abundant, its use highlights a discrepancy with
Morocco’s ambition to cut its energy dependency. The increasing need for electricity puts stress on
Morocco’s national supply, forcing the country to import electricity from Spain and Algeria –imports
from Spain account for 15% of net electricity called in 2010 (likely generated from the gas
transititing throught the MEG to Europe).

8
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It is worth noting the role that natural gas and petroleum play in electricity production. Figures from
2008 to 2010 show a slight increase in the share of Natural Gas and Fuel/Gasoil. Because
thermoelectricity represents an important source of electricity in the face of Morocco’s growing
electricity needs, petroleum products stand as a determinant combustible and a valuable resource
within Morocco’s energy policy.

2007 2008 2009


Share of Gas, Fuel and Fuel Oil 23% 28% 29%
injected
Net electricity called - GWh
22,608 24,003 25,016
Source: Ministry of Energy and Mines of Morocco - Key figures 2010, ONE – Annual report 2009

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

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2.3. Long-term forecasts & Moroccan energy policy:

Energy balance evolution (MMboe)


140
120
100
80
60
40
20
0
2002 2003 2004 2005 2006 2007 2008 2009 2010

Petroleum products Coal Hydro power


Natural gas Imported electricity Wind power

Source: Ministry of Energy and Mines of Morocco - Key figures 2010

By 2030, the need for primary energy will rise to up to 40 MMtoe, while electricity consumption will
rise to up to 85bWH, requiring the use of 58% of the country’s primary energy supply up from 41%
currently.

MEM’s short/mid-term strategy for electricity production relies on fossil fuels: while maintaining
focus on coal, the government’s strategy will emphasize the use of natural gas. Wind power and
hydro power benefit from big investments but are long-term targets. Natural gas and condensate
could represent a 30% share of combustibles if made economically available, replacing coal and fuel.
The use of coal would decrease to represent 19% of primary sources of energy. Fuel’s share would
decrease to 8%.

Petroleum products play an important part in the short-term answer to electrical needs. The real
value in short and mid-term is in natural gas: it is a domestic source of energy which complies with
the government’s near-term focus in terms of combustible. Domestic natural gas would supports
Morocco in cutting down energy dependency in the face of a challenging social and economic
expansion.

 A couple numbers on petroleum products:


 Gasoil 45% of petroleum products in 2010, rising by 5.2%/year on average for 2005-
2010 - Sensitive sectors: transport, agriculture.
 Fuel Oil 23% of petroleum products, rising by 5.56%/year on average for 2005-2010
- Sensitive sectors: home heating, heavy industrial use.
 MEM’s strategy: provide electricity for the period 2009-201 by equipping the
country with 6000+MW production facilities, of which 11% fuel oil turbines, third
important behind coal and wind power.9

9
MEM, 2008
10
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3. Oil and Gas hungry infrastructures and facilities

This section lists important facilities and projects that shape Morocco’s energy landscape on the
demand side.

Tangiers Med

Tahaddart
Kenitra

Mohammedia ABM

Jorf Lasfar

Agadir

Tantan

Future/recent oil&gas power plants

Tangiers Free Zone complex

Possible locations for LNG terminal

11
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3.1. Oil & Gas fuelled electricity facilities

Following planned directives from MEM of 2008, ONE develops/will develop oil and gas hungry
facilities to satisfy the growing need of electricity.

ONE – Combined Cycle Gas Turbine of Tahaddart

 Located 30km south of Tangier, close to MEG pipeline, and


operated by Siemens for a consortium chaired by ENDESA, largest
electric utility company in Spain and a subsidiary of the Italian
utility company Enel.
 Runing since 2005.
 Capacity: 384MW, covering 12% of the country’s electricity needs
 Gas consumption: 500 million m3/yr (3.2MMboe/yr) directly from the MEG line
 Certfied ISO 14001

[The plant] emits six times less nitrogen oxide (NOx) and a third less carbon dioxide (CO2)
than a conventional power plant, thus demonstrating the commitment of Morocco regarding
environmental requirements10.

ONE – Bitumen thermic power plant of Tarfaya

 Project part of the diversification of primary sources of energy plan from MEM
 Invitation to bid: 2009
 Capacity: 100MW

ONE – Integrated solar combined cycle plant of Ain Beni Mathar (ABM)

 ONE exploited and operated for 5 years, running since 2009.


 Capacity: 472MW
 Gas consumption: 350 million m3/yr (2.25 MMboe/yr)

Diesel power plant of Dakhla

 Running since 2002, located in Dakhla, Western Sahara


 Serving the development of Morocco’s southern provinces, answering electricity needs of
nearby harbour, aiport, industrial activity, and newly connected rural inhabitations.
 Capacity: 21 MW, undergoing extension programme

10
Source: Bureau Veritas
http://www.bureauveritas.com/wps/wcm/connect/bv_com/group/home/news/news+-
+tahaddart+power+plant+-+morocco+-
+iso+14001?presentationtemplate=bv_master/news_full_story_presentation
12
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Turbines parc of Mohammedia & Diesel groups of Tan Tan

 Operations started in 2009


 Total capacity: 416 MW
 Combined cycle power plant using Gasoil and Fuel Oil

Gas Turbines of Kenitra

 Located in seaside Kenitra 40km North of Rabat


 The plan calls for commercial traffic in Morocco's harbours to increase more than three-fold
between 2010 and 2030.
 Capacity:315-megawatt
 Consumption: Fuel Oil

Diesel group of Agadir

 Project for 2010, securing electricity supplies for southern provinces and avoiding energy
transport costs
 Capacity: 4 diesel groups of 20MW each
 Consumption: Fuel Oil

3.2. Industry

Renault-Nissan

 Renault-Nissan’s industrial complex “Renault Tanger Méditerranée” is predicted to need 20


million m3/year (130 Mboe/year).
 The facility is built in the Tangiers Mediterranean Special Economic Zone (or TFZ for Tanger
Free Zone).
 It will comprise an assembly plant with access to the TangerMed port platform (part of TFZ).
 The new site will open in 2012 and will expand Renault’s production base for low-cost
vehicles based on the Logan platform.

Renault11corporate presentation, 2009:Renault has been present in Morocco for 80 years. It


is No. 1 on the Moroccan market with the Renault and Dacia brands. The Group already has
a production unit in Casablanca (SOMACA) and in 2008, started work on a vast industrial
complex in Tangiers.

Renault also stepped up its product offensive in 2008 and 2009 with the launch of New
Laguna and Laguna Coupé, Clio RS, Koleos and Koleos Diesel, Symbol, New Kangoo, Mégane
hatch and coupé and Scénic. In 2010 the Fluence sedan joined the range.

11
Source: http://www.renault.com/en/groupe/renault-dans-le-monde/pages/renault-au-maroc.aspx
13
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The automotive industry:

Perspectives of automobiles production in Morocco - thousand units


450

400
Renault-Nissan
350
Tangiers
300

250

200
Renault
150 Logan
Fiat
SOMACA,
100 178
casablanca
50

0
1980 1985 1990 1995 2000 2005 2010 2015 2020

Automobiles production in Morocco - thousand units

Source: Layan & Lung, CNRS, Perspectives of development in the automotive industry in Morocco, 2007.

Cofely

Renaul Tanger Med will certainly generate employment and more industrial activity around it.
L’Economiste12, a notorious Moroccan newspaper announces:

 Cofely, subsidiary of GDF Suez has won the contract for multi-tehnical maintenance in
Renault’s Facility Management programme.
 5 year contract, operational this year and starting activities early 2012.
 Cofely has created a subsidiary dedicated to facility management in TFZ to facilitate
exchanges with local businesses and secure a strategic location.
 Cofely also intervenes on facilities owned by Lafarge, Sanofi, Aircelle Maroc, Marjane,
Attijariwafa bank.

12
http://www.leconomiste.com/article/887997-renault-tanger-cofely-decroche-la-maintenance
14
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Tangiers Free Zone (TFZ)

 Created in 1999, important and dynamic


 Counting 475 companies in IT, Auto, Aero, Wood, Aluminum, Textile and International
investors.
 5 mk2
 2 harbour logistics areas, close to Tangier Med’s harbour, strategic platform turned towards
Europe and Gibraltar. Well connected to roads.
 Fiscal advantages.

3.3. A look on the supply-side: LNG facilities

At the moment, Morocco levies natural gas on the MEG pipeline. But without the capacity to store
LNG, this mostly goes to the Tahaddart combined cycle power station. Morocco uses all of the
transit royalties already and energy demand keeps growing. There is subsequently a need for the
country to expand or diversify its gas supplies.

SNI & Akwa LNG port terminal and storage plant (Ongoing)

 Proposal (2010) by investors:


 Société Nationale d'Investissement, controlled by Siger -entity managing the
Moroccan royal family's wealth
 Akwa, a family-owned Moroccan energy group.
 Joint venture, teaming up:
 Afriquia Gaz, a subsidiary of Akwa and the leader in gas distribution in Morocco
 ONE
 SAMIR
 Forecasted capacity: gas import 5bn-10bn m3/yr (32 to 64MMboe/yr)13
 Usage:60% to electricity, 20% in Mohammedia refinery, 20% for the industrial sector to
replace Naphta14
 Locations under consideration include: Mohammedia Tangiers or Jorf Lasfar, industrial zone
and phosphate processing centre to the south of Rabat.
 Feasibility study by Belgium-based Tractebel Engineering, a Suez subsidiary 15

13
Source: . The Economist Intelligence via Uni Views Wire
http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=1957189580&refm=vwHome&page_tit
le=Latest%20analysis&rf=0
14
Source: The Report:Emerging Morocco 2007
15
Tractebel Engineering is a Belgium based, international company providing worldwide life-cycle consultancy
and engineering in power, nuclear, gas, industry and infrastructure for the GDF SUEZ Group – within GDF SUEZ
Energy Services - as well as for national and international customers. GDF SUEZ Energy Services is one of the
key business lines of GDF SUEZ and the European leader in multi-technical energy related services
15
Longreach Oil and Gas Ltd - Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES
Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com
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Corporate announcement (2006): Afriquia Gaz s.a., the ONE, and Société Anonyme
Marocaine de l’Industrie du Raffinage have entrusted Tractebel Engineering with the
feasibility study, front end engineering and design (FEED) and turnkey contracting assistance
for construction of a new LNG import terminal (5 billion m³/year) and a gas pipeline in
Morocco.16

Conclusion:
 Energy demand is strong, growing and driven by
 Demographic expansion
 Economic development supported by international investments and major industrial
projects
 There is stress on Morocco’s capacity to provide electricity, it seems unrealistic for the
country to carry on with imports when energy needs are forecasted to double within 10
years.
 Highly dependent on international suppliers of Oil, gas and electricity, Morocco is
diversifying its sources of primary energy and investing in its own transport and storage
infrastructures
 The electricity plants open an important window of opportunity for fuel and gas producers

MEM’s strategy: provide electricity for the period 2009-201 by equipping the country with
6000+MW production facilities, of which 11% fuel oil turbines, third important behind coal
and wind powe

 The MEG gas levy suffices for now but


 The amounts of gas Morocco can puncture from it are reaching a ceiling outgrown
by the country’s consumption
 Relationships between Morocco and Algeria are still tense

LNG storage and import facilities are being considered as a diversification solution but infrastructure
costs are a barrier, leading the government to prioritise domestic hydrocarbons.

Social, economic and industrial development, combined with Morocco’s commitment to achieve
energy security put Longreach in a strong position.

« De par sa position géographique et ses interconnexions à l’est avec l’Algérie et au nord


avec l’Espagne, le Maroc se trouve dans une position unique de hub énergétique. »

Amina Benkhadra17

16
http://tractebel-engineering.nl/gas/references/(sort_direction)/0/(sort_field)/title/(service)/8
17
http://www.lesafriques.com/actualite/amina-benkhadra-aucune-decision-a-ce-jour-n-a-ete-retenue-pour-
la-realisation-d-une-central.html?Itemid=89?article=298020
16
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Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com
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Appendix A Tables

Energy consumption (MMboe) 2002 2003 2004 2005 2006 2007 2008 2009 2010
Production 2.36 3.41 3.77 2.47 2.64 2.61 2.67 5.85 8.09
Oil & Natural gas 0.44 0.41 0.46 0.32 0.47 0.43 0.42 0.35 0.43
Hydro power 1.56 2.68 2.96 1.79 1.83 1.68 1.70 4.77 6.44
Wind power 0.36 0.33 0.36 0.36 0.34 0.50 0.55 0.73 1.22
Consumption 74.72 78.29 82.22 87.07 92.15 98.10 105.46 108.14 115.33
Petroleum products 46.04 47.72 49.87 54.16 55.09 57.64 64.77 65.04 70.84
Coal 23.84 24.56 25.86 26.54 27.70 27.93 26.71 24.82 24.99
Hydro power 1.56 2.68 2.96 1.79 1.83 1.68 1.70 4.77 6.44
Natural gas 0.34 0.33 0.32 2.71 3.42 3.86 3.81 4.19 4.52
Imported electricity 2.59 2.67 2.86 1.51 3.76 6.50 7.91 8.59 7.31
Wind power 0.36 0.33 0.36 0.36 0.34 0.50 0.55 0.73 1.22
Petroleum products share (%) 61.6% 61.0% 60.7% 62.2% 59.8% 58.8% 61.4% 60.1% 61.4%
Dependency (%) 96.8% 95.6% 95.4% 97.2% 97.1% 97.3% 97.5% 94.6% 93.0%
Source: Ministry of Energy and Mines of Morocco - Key figures 2010

Gas (MMboe) 2002 2003 2004 2005 2006 2007 2008 2009 2010
Natural gas consumption 0.34 0.33 0.32 2.71 3.42 3.86 3.81 4.19 4.52
Variation -4.2% -2.2% 742.2% 26.4% 12.7% -1.3% 9.9% 8.0%
Royalty from MEG pipeline18 4.17 4.16 4.71 6.10 5.34 5.15 5.53 4.48 4.52
Consumption as share of MEG 8% 8% 7% 44% 64% 75% 69% 93% 100%
Source: Ministry of Energy and Mines of Morocco - Key figures 2010

18
Note: Boe converted from Nm3 using approx conversion rate of 0.00680335338
17
Longreach Oil and Gas Ltd - Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES
Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com
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Imports of crude oil and petroleum


products (kT) 2002 2003 2004 2005 2006 2007 2008 2009 2010
Crude Oil 6182 4614 6134 6910 6402 6268 5535 4786 5243
Propane 77 117 120 110 115 130 129 139 148
Butane 923 1098 1168 1186 1246 1474 1465 1674 1773
Gasoil 381 1585 978 997 1312 1813 2078 3147 2295
Jet 144 187 100 100 95 150 120 167 102
Fuel Oil - 28 - - - 524 493 1222 -
Wax and Oils 11 86 53 8 7 6 6 31 21
Bitumen - 120 24 - 22 35 19 88 151
Gasolines - 242 112 - - 58 44 223 230
Source: Ministry of Energy and Mines of Morocco - Key figures 2010

Imports of crude oil by origin 2009 2010 Variation Russia Iran


2010
MMboe Share MMboe Share 09/10 15% 4%
Saudi Arabia 17.12 49.0% 21.85 57.1% 16.5%
Iraq 10.13 29.0% 8.99 23.5% -19.0% Iraq Saudi
Russia 6.64 19.0% 5.74 15.0% -21.1% 24% Arabia
Iran 1.05 3.0% 1.68 4.4% 46.7% 57%
Total (MMboe) 34.94 38.27 9.5%
Source: Ministry of Energy and Mines of Morocco - Key figures 2010

18
Longreach Oil and Gas Ltd - Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES
Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com
Strictly private and confidential

Petroleum Products Factsheet - 2010


Petroleum products consumption : 9,9 million tons
Production : Oil :10,267T
Natural Gas : 49.9 MMNm3 (approx. 0.30MMboe)
Petroleum bill : DH61.6 billion
Maghreb Europe pipeline capacity 12.5billion Nm3/year
Refining capacity 6,5 MT/year
Number of distribution companies Liquid petroleum products : 15
Liquefied Petoleum Gas: 16
Number of service stations 2255
Number of LPG filling centres 35
LPG filling capacity 1,9 MT/year (1 shift of 8 hours per day)
Storage capacity (distribution companies) Liquid petroleum products : 851 700 T
Butane : 166 000 T
Propane : 12 800 T
Source: Ministry of Energy and Mines of Morocco - Key figures 2010

19
Longreach Oil and Gas Ltd - Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES
Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com
Strictly private and confidential

Appendix B Gas Pipelines

Source: Wikipedia
20
Longreach Oil and Gas Ltd - Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES
Tel: +44 203 137 7756 Fax: +44 207 629 1317 www.longreachoilandgas.com

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