Casablanca – In a recent parliamentary session, Leila Benali, Minister of Energy Transition and Sustainable Development, provided crucial updates on the state’s ongoing support for butane gas, the status of the SAMIR refinery, and new developments in the natural gas sector.
Continued support for butane gas
Minister Benali emphasized the government’s commitment to ensuring the supply of butane gas cylinders under optimal conditions. Despite a gradual increase in gas prices since May 20, 2024, the state continues to subsidize 12kg gas cylinders with $4.74 per cylinder. The actual cost of these cylinders reached $9.90 in June. Benali highlighted that there are currently 15 companies distributing 12kg, 6kg, and 3kg butane gas cylinders across the kingdom, with 17 companies handling the filling process through 37 centers nationwide.
Investments in renewable energy for agriculture
In response to questions regarding the use of butane gas in agriculture, Benali noted that the government is encouraging the adoption of renewable energy technologies. This includes fiscal incentives for solar-powered water pumps and other renewable energy solutions, in line with the recommendations of the new development model. This initiative aims to enhance governance and competitiveness in the energy sector, particularly in petroleum products.
Reform of the butane gas subsidy system
Benali reiterated that the reform of the butane gas subsidy system is part of a broader social reform agenda. This includes the gradual overhaul of the compensation fund, aimed at implementing direct and targeted support for deserving families through the unified social registry.
SAMIR refinery and oil refining investments
Addressing the SAMIR refinery, Benali confirmed that there have been no new developments, with the matter still pending before the international court. She acknowledged that investment requests for oil refining remain very limited but stressed that the ministry is working with the Ministry of Equipment and Water to rationalize infrastructure planning, including petroleum logistics and refining facilities.
Benali also mentioned the development of a new system for managing the strategic oil reserve, which involves a public-private partnership. This initiative aims to meet legal requirements and ensure the balanced distribution of storage capacities across the country.
Advancements in natural gas projects
Benali highlighted significant progress in the natural gas sector, particularly in the Tendrara region in the east and Larache. She noted that efforts during the current government’s term have created an investment-friendly environment, attracting both foreign and domestic investors. The ministry has developed a comprehensive strategy for the natural gas sector, including a roadmap for infrastructure development.
In March 2024, a memorandum of understanding was signed between four ministries and five public institutions to coordinate sector activities. Additionally, a workshop was held on May 31, 2024, to present the new vision for accelerating gas projects in Tendrara and Larache. These efforts have already shown positive results, with significant investments announced by both foreign and Moroccan companies.
For instance, a foreign company sold nearly $1 billion of its assets in Egypt, Italy, and Croatia to focus its investment in Larache, while a Moroccan private company announced an investment of $3.6 million to expedite the Tendrara project.
Benali concluded by noting that these initiatives are transforming Morocco into a critical hub for green energy transit to Europe and the Atlantic, further bolstering investor confidence in the country’s natural gas sector.
