Professional Documents
Culture Documents
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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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
1
Ministry of Energy, Mines, Water and Environment of Morocco, 2008.
3
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6.00
5.00
4.00
0.00
2002 2003 2004 2005 2006 2007 2008 2009 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.
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.
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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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.
350%
300%
250%
200%
150%
100%
2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Ministry of Energy and Mines of Morocco - Key figures 2010, International Monetary Fund
6
United Nations Development Program - Human Development Report, 2010
6
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180%
170%
160%
150%
140%
130%
120%
110%
100%
2002 2003 2004 2005 2006 2007 2008 2009 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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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
10000
8000
6000
4000
2000
0
2002 2003 2004 2005 2006 2007 2008 2009 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.
9
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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.
9
MEM, 2008
10
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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
11
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Following planned directives from MEM of 2008, ONE develops/will develop oil and gas hungry
facilities to satisfy the growing need of electricity.
[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.
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)
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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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 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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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
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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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)
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
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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
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.
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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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
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18
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Source: Wikipedia
20
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