Summary:

On 2 February 2026, Morocco’s Energy Transition Ministry suspended all tenders for the Nador West Med gas terminal and associated pipeline following objections from the Ministry of Economy and Finance. 

The decision halts a selection process launched in December for what was considered one of Morocco’s most strategic energy projects, aimed at linking the LNG terminal to the Maghreb-Europe pipeline and extending the gas network to key industrial hubs. The Finance Ministry cited concerns over potential budget exposure, procedural shortcomings, and legal uncertainty under the country’s pending gas regulatory framework. Europe pipeline and extending the gas network to key industrial hubs. The Finance Ministry cited concerns over potential budget exposure, procedural shortcomings, and legal uncertainty under the country’s pending gas regulatory framework.  

Authorities indicated that the projects could be relaunched once regulatory and financial issues are resolved, but no timeline was provided. 

Outlook: 

While Morocco aims to expand its use of natural gas to diversify away from coal and accelerate its renewable energy plan for 2030, the suspension of the Nador West Med project represents the bureaucratic challenges that could hinder the rapid evolution of the economy the government envisions. The event also underscores coordination and management challenges between government ministries, which could further complicate operations and timelines. 

This suspension could place the government at a critical juncture, as investors and partners interested in the project may face uncertainty and potentially lose confidence in future opportunities. Additionally, the pause risks undermining Morocco’s reputation as an important player in the regional gas sector, which could affect its ability to attract strategic investment going forward. 

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