meed-logo

line1 line2 line3
SIGN IN / REGISTER

Morocco gas and fertiliser project activity surges

13 July 2023

> Maghreb energy project activity doubles
> Morocco fertiliser project progresses towards approval
> Morocco fertiliser company plans four solar plants
> Nigeria to invest $12.5bn in Morocco pipeline
> Genel in talks to develop Moroccan oil assets
> Design completed for Moroccan gas project

 

Over the past three years, Morocco has seen a surge in early-stage gas and chemical project activity that could potentially be worth multibillion dollars.

The country is taking advantage of its proximity to Europe and demand for fertilisers as well as its potential to benefit as a possible transit route for natural gas.

At the same time, it is advancing exploration and production projects for natural gas that may pay dividends over the long term.

While many of the projects are in their early stages, and some of the largest projects are highly speculative, it is likely that some will ultimately see contracts awarded over the coming years.

Nigeria pipeline

The planned $25bn Nigeria-Morocco gas pipeline is currently the biggest project in Morocco’s gas sector and is also one of the most speculative.

As the project spans 13 countries, it is complicated and will need cooperation between all of the nations involved to succeed.

Despite the challenges, there has been significant progress on the project.

In April, Nigeria’s National Petroleum Company (NNPC) said it was preparing to invest $12.5bn to secure a 50 per cent equity stake in the project.

At the time, Mallam Mele Kyari, group CEO of NNPC, said the first phase of the front-end engineering and design (feed) work had been completed, and the second phase of the feed work was under way.

Earlier this month, NNPC tendered contracts to carry out survey work for pipeline sections with a bid deadline of 20 September this year.

Morocco will host 1,672 kilometres of the pipeline. The country’s head of state, King Mohammed VI, has described it as a strategic turning point that will significantly advance the development of West Africa. The project will extend for 5,600km in total.

The 13 countries involved in the project signed a memorandum of understanding (MoU) with Morocco’s National Office of Hydrocarbons & Mines in December 2022.

Regasification

Other midstream gas projects active in Morocco include two liquefied natural gas (LNG) regasification terminals.

One of these was first announced in 2021 after Algeria shut down a gas pipeline between the two countries.

The client on this project is Morocco’s Ministry of Energy & Mining, and the terminal is due to be developed near the capital city of Rabat.

It is part of a gas-to-power project, and the entire project is estimated to have a value of $1.3bn.

Contractors have submitted bids on this project, but contracts are yet to be awarded.

The second regasification terminal has an estimated value of $200m and is due to be located in Morocco’s Mohammedia Port.

This project is also being developed by Morocco’s Ministry of Energy & Mining and was first announced in 2021.

Like the project slated to be developed near Rabat, bids have been submitted, but contracts are yet to be awarded.

Upstream

Although Morocco continues to be a net gas importer, there has been progress on upstream gas projects within the country since 2021.

In December last year, the Anchois project offshore Morocco took a step forward after London-based Chariot agreed the key principles of a gas sales deal.

Anchois hosts about 1.5 trillion cubic feet of potential gas resources and is being developed via subsea wells tied back direct to an onshore gas processing plant.

Chariot said that, together with its field partner, state-owned ONHYM, it had agreed key principles for long-term gas sales from Anchois with Morocco’s National Office of Electricity & Drinking Water (Onee).

These principles included gas sales of up to 600 million cubic metres a year on a take-or-pay basis for a minimum of 10 years, with gas to be delivered via the Maghreb-Europe gas pipeline.

Earlier this month, another London-listed oil company, Sound Energy, secured funding to execute the second development phase of the company’s Tendrara production concession in Morocco.

The company confirmed the funding arrangement in a statement and said it has “now received a conditioned offer from the arranger for a maximum financing of $237m”, subject to certain conditions being met by September 2023.

Morocco’s Attijariwafa Bank will finance the gas field’s second development phase.

Sound Energy said that the financial facility will be used for the “design, drilling, construction and operation of wells, a treatment facility and a gas pipeline to transport and sell the natural gas produced under the Tendrara production concession”.

The Tendrara gas development project has a total estimated value of $1bn.

Additionally, in December last year, the Israeli independent oil and gas company NewMed Energy struck a controversial deal to take a stake in an exploration licence offshore the disputed territory of Western Sahara.

Morocco currently controls Western Sahara, although the African Union and United Nations do not recognise Rabat’s sovereignty, while the indigenous Saharawi people are fighting for independence.

NewMed Energy signed an agreement with the Moroccan Ministry for Energy & Mining and Adarco Energy to explore and produce natural gas in the offshore Boujdour Atlantique block.

NewMed and Adarco will each have a 37.5 per cent stake in the licence partnership, while the Moroccan ministry will hold the remaining 25 per cent. The licence has been granted for eight years.

The Boujdour Atlantique block was previously operated by US oil company Kosmos Energy, which held a 55 per cent stake in the permit, while its partner UK company Capricorn – a subsidiary of Cairn Energy – had 20 per cent.

The remaining 25 per cent was in the hands of ONHYM.

Fertilisers

Morocco has seen an uptick in activity in ammonia and fertiliser projects in the wake of the Russia-Ukraine war.

In June 2022, the Moroccan phosphate giant OCP announced that its net income had more than doubled compared to the previous year, mostly attributed to the rise in fertiliser prices due to the war between Russia and Ukraine.

Morocco is among the world's top four exporters of fertiliser products, after Russia, China and Canada.

It has a large fertiliser industry, mainly due to its large phosphate reserves, one of the key minerals from which fertilisers are produced.

In January, OCP announced that it had signed supply agreements with India for 1.7 million tonnes of phosphate-based fertilisers in 2023.

Under the deals, OCP will supply India with 700,000 tonnes of a nitrogen-free fertiliser known as triple super phosphate (TSP), in addition to 1 million tonnes of diammonium phosphate (DAP).

One Moroccan fertiliser project that is seeing progress is the Khemisset potash project in the north of the country.

In April, Emmerson, the company developing the project, said it was progressing towards final approval for the project’s environmental permit.

The potash project is anticipated to have a pre-production cost of $387m. It is expected to be able to produce, on average, 810,000 tonnes of muriate of potash (MOP), with a potassium content of 60 per cent, every year over the mine’s first 19 years of production.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10999825/main.gif
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Larsen & Toubro climbs EPC contractor ranking

    24 November 2025

     

    The oil, gas and petrochemical engineering, procurement and construction (EPC) sector in the Middle East and North Africa (Mena) has enjoyed another strong year in historical terms.

    This remains true even though the total value of awards in 2025 – $62.5bn as of the first week of November – looks set to fall short of the record highs of $86bn in 2023 and $95bn in 2024. The level of market activity nevertheless remains well above the long-term average of $46bn and the 10-year average of $50bn.

    Looking beyond the top line, the most notable trend of the year is the outsized success of India’s Larsen & Toubro (L&T) in securing many of the largest recent schemes in Saudi Arabia and Qatar. 

    Chinese contractors have also made steady progress in increasing their market share. Some industry stalwarts, by contrast, have seen considerably less success.

    While some of this can be attributed to the cyclical nature of tendering and more selective bidding by established players with already large order books, MEED’s ranking of total execution values bears out the broader trends.

    L&T’s dramatic surge

    The most dramatic shift in the EPC landscape over the past 12 months (Q4 2024-Q3 2025) has been a $12.7bn surge in awards secured by L&T. This rapid expansion of its value of work under execution to $25.4bn has brought the company to within one place of the top of MEED’s EPC contractor rankings – falling just shy of the $26.9bn currently being executed by Italy’s Saipem.

    L&T’s recent successes include the March win of the $4bn combined package 4A and 4B (Comp4) of QatarEnergy LNG’s North Field Production Sustainability programme – the largest project awarded during the period. L&T also won the $2.5bn fifth natural gas liquids train (NGL-5) project from QatarEnergy, and four separate contracts worth more than $1bn each with Saudi Aramco.

    These wins built on an already burgeoning order book – one that also includes the $3.6bn phase 2: package 1 of the Jafurah gas treatment facility, awarded by Aramco in September 2023.

    L&T’s rise has also been helped by relative inactivity among other top firms. Both Saipem and Italy’s Maire Tecnimont achieved prominent ranking positions a year earlier after securing, respectively, the $8.2bn offshore and $8.7bn onshore packages of Adnoc’s Hail and Ghasha programme in October 2023. Those awards, together with other contracts, saw the two Italian firms secure roughly $12bn in awards each in a single 12‑month stretch, catapulting them up the ranking.

    However, neither company has added significantly to their pools of work over the past 12 months, in sharp contrast with L&T, which has seized momentum in the regional contracting landscape. So far, L&T has displaced Maire Tecnimont to reach second place regionally; another year of even marginally comparable momentum should put it at the top.

    Also notable is the gap between L&T’s total awards over the past 12 months and those of its nearest competitors. L&T’s $12.7bn in wins rivals the combined value of the next three largest EPC contractors. As a share of an estimated $70bn in total awards across the sector over the same period, L&T secured about 18% of the work.

    The previous year, Saipem and Maire Tecnimont each secured closer to 12% of awards. This underlines L&T’s considerable momentum both in terms of its order book and market share growth.

    Chinese push

    Two other significant winners over the past 12 months are China Petroleum Engineering & Construction Corporation (CPECC) and China Offshore Oil Engineering Company (COOEC), which secured $5bn and $4.3bn-worth of awards, respectively.

    These contracts wins have moved the two Chinese firms up into the top 20 EPC contractors. CPECC’s success is largely attributable to the niche it has developed in Iraq and Algeria, where about $4.4bn of its awards were won – led by a $1.6bn contract to deliver the central gas complex for Basra Oil Company’s Artawi development.

    COOEC’s recent wins have been concentrated in the GCC, specifically on phases one and two of QatarEnergy’s Bul Hanine offshore oil field expansion, which are worth a combined $4bn.

    The US’ McDermott and Spain’s Tecnicas Reunidas – two long-term regional players – recorded the next strongest order-book additions, securing about $3.8bn and $3.4bn, respectively. McDermott’s new work includes the $2bn phase two of Adnoc Offshore’s Umm Shaif long‑term development plan and a $1.8bn contract to lay offshore pipelines and subsea power cables for QatarEnergy LNG’s North Field South programme.

    The next five biggest bookers over the period were South Korea’s Samsung C&T and Samsung E&A, the UAE’s Lamprell and Target Engineering, and Qatar’s Doha Petroleum Construction Company (DOPET) – each securing more than $2bn.

    Samsung C&T’s top award was for QatarEnergy’s $2.5bn carbon sequestration complex; Samsung E&A’s was for Taziz Chemicals’ $1.7bn methanol plant in phase one of its industrial chemicals zone.

    Lamprell secured five separate contracts from Saudi Aramco, the largest a $1.5bn award for offshore infrastructure on the Zuluf development.

    Target secured three UAE contracts, led by a $1.5bn award from Adnoc Offshore for phase five of its Das Island terminal facilities (part of the Lower Zakum long‑term development).

    DOPET secured two contracts from QatarEnergy, led by a $2bn award for phase three of the Bul Hanine offshore oil field expansion.

    Across the activity, it remains conspicuous how rapidly values fall away from the top winners and how concentrated the recent awards are with L&T. While the contraction in total award value may partly explain this dynamic, the broader trend is clear: the concentration of work with L&T makes it the company to watch in regional bidding rounds in the year ahead.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15140734/main.gif
    John Bambridge
  • Chinese firm signs deal for Algerian steel project

    24 November 2025

    China’s Sinomach Heavy Equipment has signed a contract to develop a steel rolling facility in Algeria.

    The project will be executed by its subsidiary, China National Heavy Machinery Corporation (CNHMC).

    The turnkey contract includes planning, design, equipment supply, construction, installation and commissioning.

    The scope of the project includes:

    • A rolling mill production line
    • Auxiliary facilities
    • Steel structure workshops

    In a statement, CNHMC said: “The signing of this contract marks a new stage in the company's market expansion in the African metallurgical sector.

    “CNHMC will fully leverage its technological and management advantages in the metallurgical field, strictly control the project's quality and schedule, and strive to complete and deliver the project on schedule with high quality and high standards, making it a benchmark project in the Algerian market.”

    The company said it will use its regional headquarters in Turkiye to ramp up its activities in the Algerian market and other neighbouring countries.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15139865/main3657.jpg
    Wil Crisp
  • Contractors submit Riyadh Expo infrastructure bids

    24 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, received commercial bids from contractors on 23 November for the tender to undertake the initial infrastructure works at the site.

    The tender for the project’s initial infrastructure works was issued in September, MEED previously reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15140538/main.jpg
    Yasir Iqbal
  • Chinese firm signs deal for 4GW Saudi solar project

    24 November 2025

    Chinese firm Arctech has announced a cooperation agreement with PowerChina Huadong Engineering for the 4.2GW Afif solar photovoltaic (PV) project in Saudi Arabia.

    The partnership will involve Arctech supplying its SkyLine 2 single-axis tracking system, designed to follow the sun in high-wind and desert environments.

    Located near Riyadh, the Afif solar complex forms part of the Public Investment Fund’s (PIF) 15GW renewables programme announced earlier this year.

    It comprises two independent power projects (IPPs): Afif 1 (1.8GW) and Afif 2 (2.4GW). PowerChina Huadong is the engineering, procurement and construction (EPC) contractor for both schemes.

    In October, a consortium of Acwa Power, Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco) reached financial close on five solar IPPs under the PIF programme, including Afif 1 and Afif 2.

    The deals were signed at the ninth Future Investment Initiative (FII) conference in Riyadh.

    The five projects have a combined value of about $6.4bn and a total capacity of more than 12GW. They include the 3GW Bisha solar IPP, the 3GW Humaij solar IPP and the 2GW Khulis solar IPP.

    India’s Larsen & Toubro is the EPC contractor for the Bisha and Humaij solar projects.

    China Energy Engineering Corporation (CEEC) recently signed the EPC contract for the 2GW Khulis solar PV project. 

    The firm also signed EPC contracts for the two remaining projects in the renewables package, the 1GW Shaqra wind project and the 2GW Starah wind project, reaching $2.75bn in contracts across the three projects.

    All schemes under the 15GW PIF renewables package are scheduled to begin operating between the second half of 2027 and the first half of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15133404/main.jpg
    Mark Dowdall
  • Wafra Joint Operations seeks more participation for upstream tender

    24 November 2025

     

    Wafra Joint Operations (WJO) is seeking more participation from companies in a tender for a project to upgrade a key oil and gas gathering centre in the Divided Zone, which is shared between Kuwait and Saudi Arabia, according to industry sources.

    A pre-bid meeting was held for the project, but due to low interest at the original meeting, WJO is now planning a second meeting.

    The project is focused on upgrading the main gathering centre at the Wafra field, which processes Eocene crude oil.

    WJO’s onshore operations cover an area of around 5,000 square kilometres in the Divided Zone.

    Saudi Arabian Chevron and Kuwait Gulf Oil Company are equal shareholders in WJO.

    Six major fields have been discovered in the WJO area to date: Wafra, South Fuwaris, South Umm-Gudair, Humma, Arq and North Wafra.

    The first discovery in this area was made in 1954, when the first well in the Wafra Field was drilled and completed.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15139837/main.png
    Wil Crisp