132 S. MOORE
seems likely that the Moroccan government would not want to be dependent on Algeria for 95% of natural gas imports as installed gas capacity
grows. Additionally, US shale gas production offers a new opportunity
for Morocco to import LNG from a close ally. The Moroccan government also signed a 2018 agreement with Nigeria to develop a new gas
pipeline. 66 Through this pipeline, Morocco would become a conduit for
natural gas exports from West Africa to Europe, but a Fitch Solutions
study found numerous obstacles to feasibility. 67
Oil
Aside from slightly reducing dependence on fuel oil/diesel for power
plants and industry, renewable electricity development does nothing to
reduce oil imports, most of which are used for transportation. Electrified
train and tram services serve only Morocco’s major cities, and electric
vehicles are generally neither affordable nor available. In 2016, Morocco’s refined oil imports came from 30 country suppliers. Spain (23%)
and the United States (19%) are the two largest exporters. 68 From 2009
to 2014, Morocco depended mostly on Saudi Arabia, Iraq, and Russia
for oil imports. 69 Algeria only accounts for 8% of Morocco’s overall oil
and oil product imports. 70 However, an unknown amount of gasoline is
smuggled across the Algerian–Moroccan border. 71
In 2016, the shutdown of all refining capacity harmed Morocco’s oil
security. Morocco has lost its oil storage capacity and must import all
distillates. 72 The government-run SAMIR refinery had gone into service
in 1962 to increase Morocco’s fuel security. 73 In 1997, SAMIR was
taken over by a Saudi company as part of a broader market liberalization
initiative. 74 After a long period of insolvency, the Moroccan government
provided $500 million to refinance SAMIR in 2014. 75 But the SAMIR
refinery was liquidated in March 2016. 76 The Moroccan state is taking
SAMIR to court to recover millions of dirhams in unpaid taxes, although
the Saudi CEO has left the country. 77 Moreover, an analyst from the
Atlantic Council alleges that SAMIR was dealing in stolen crude oil from
Nigeria. 78
seems likely that the Moroccan government would not want to be dependent on Algeria for 95% of natural gas imports as installed gas capacity
grows. Additionally, US shale gas production offers a new opportunity
for Morocco to import LNG from a close ally. The Moroccan government also signed a 2018 agreement with Nigeria to develop a new gas
pipeline. 66 Through this pipeline, Morocco would become a conduit for
natural gas exports from West Africa to Europe, but a Fitch Solutions
study found numerous obstacles to feasibility. 67
Oil
Aside from slightly reducing dependence on fuel oil/diesel for power
plants and industry, renewable electricity development does nothing to
reduce oil imports, most of which are used for transportation. Electrified
train and tram services serve only Morocco’s major cities, and electric
vehicles are generally neither affordable nor available. In 2016, Morocco’s refined oil imports came from 30 country suppliers. Spain (23%)
and the United States (19%) are the two largest exporters. 68 From 2009
to 2014, Morocco depended mostly on Saudi Arabia, Iraq, and Russia
for oil imports. 69 Algeria only accounts for 8% of Morocco’s overall oil
and oil product imports. 70 However, an unknown amount of gasoline is
smuggled across the Algerian–Moroccan border. 71
In 2016, the shutdown of all refining capacity harmed Morocco’s oil
security. Morocco has lost its oil storage capacity and must import all
distillates. 72 The government-run SAMIR refinery had gone into service
in 1962 to increase Morocco’s fuel security. 73 In 1997, SAMIR was
taken over by a Saudi company as part of a broader market liberalization
initiative. 74 After a long period of insolvency, the Moroccan government
provided $500 million to refinance SAMIR in 2014. 75 But the SAMIR
refinery was liquidated in March 2016. 76 The Moroccan state is taking
SAMIR to court to recover millions of dirhams in unpaid taxes, although
the Saudi CEO has left the country. 77 Moreover, an analyst from the
Atlantic Council alleges that SAMIR was dealing in stolen crude oil from
Nigeria. 78