Casablanca – Morocco remained among the countries with the highest wholesale natural gas prices worldwide in 2025, according to new findings published by the International Gas Union (IGU) in its “Wholesale Gas Price Survey 2026.”

The report classified Morocco within the “orange” pricing category, where average wholesale gas prices ranged between $10 and $15 per million British thermal units (MMBtu) during 2025. The orange category represented the highest pricing level recorded globally last year, as no markets were classified in the “red” category reserved for prices exceeding $15 per MMBtu.

Morocco had previously been included in the red category in 2022, during the height of the global energy crisis triggered by supply disruptions and geopolitical tensions that pushed gas prices to record levels across international markets.

The latest IGU assessment reflects a moderation in international gas prices compared with the sharp increases recorded during 2021 and 2022. However, Morocco continues to face relatively elevated import costs compared with several other regions, amid ongoing dependence on external supply sources and fluctuations in global energy markets.

According to the report, Africa represented approximately 4% of total global natural gas consumption in 2025, equivalent to around 177 billion cubic meters. The continent’s gas market continues to rely on several pricing mechanisms, with regulated systems remaining dominant in many producing countries.

The IGU indicated that the “Regulated Base Cost” (RBC) mechanism remained the most widely used wholesale gas pricing model in Africa last year, accounting for 45% of the continent’s gas volumes, or nearly 80 billion cubic meters. Under this mechanism, national regulatory authorities establish reference prices for gas sales. The system is mainly applied to domestic production in countries including Egypt, Algeria, and Libya.

The “Regulated Cost of Service” (RCS) model represented around 21% of African gas volumes, equivalent to approximately 37 billion cubic meters. This system allows regulators to determine prices based on actual production and delivery costs, while including a reasonable profit margin for suppliers. It is used notably in domestic production in Egypt and Nigeria, as well as for certain regional pipeline exports from Nigeria to Ghana, Benin, and Togo.

Meanwhile, the “Gas-on-Gas Competition” (GOG) pricing mechanism accounted for around 14% of Africa’s gas market, or about 25 billion cubic meters. This system relies entirely on supply and demand dynamics without direct government intervention or linkage to oil prices.

The report noted that Morocco falls partly within this category through pipeline gas imports and certain international liquefied natural gas transactions. The GOG mechanism also applies to part of Nigeria’s domestic production sold outside the electricity sector and to LNG imports into Egypt.

The IGU further explained that the “Oil Price Escalation” (OPE) model, in which gas prices are indexed to global crude oil prices, represented around 5% of Africa’s gas market in 2025, equivalent to approximately 8 billion cubic meters. This pricing structure is still used in some African markets, including parts of Tunisia, South Africa, Côte d’Ivoire, and Tanzania, as well as in segments of regional exports from Nigeria.

Another mechanism highlighted in the report was the “Regulated Social Price” (RSP) model, which represented around 4% of African gas volumes. This system is used in countries including Morocco, Ghana, Equatorial Guinea, Gabon, Mozambique, and Tanzania, mainly in the context of domestic production and state-supported pricing policies.

The report also reviewed major shifts in global gas pricing trends over the past two decades. According to the IGU, the share of market-based pricing systems such as GOG expanded significantly between 2005 and 2025 as more countries liberalized their gas sectors and adopted internationally linked pricing mechanisms.

In Africa, the GOG system gained additional importance beginning in 2021, partly due to South Africa’s transition toward hub-based pricing for domestic production and rising gas demand in Nigeria. In 2022, the mechanism expanded further after changes in Tunisia’s import pricing structure and the suspension of pipeline gas supplies from Algeria to Morocco.

Following the halt of Algerian pipeline exports, Morocco increasingly relied on alternative supply arrangements, including spot LNG imports delivered through Spain. This shift exposed the country more directly to international market prices and short-term volatility, contributing to higher import costs during periods of tight global supply.

At the same time, the IGU observed that oil-linked pricing mechanisms have gradually lost influence in several importing markets, including Morocco, Portugal, Chile, Argentina, Jordan, Brazil, and South Africa. According to the report, liberalization policies and the growth of LNG trade have accelerated the transition toward more flexible pricing systems tied to market competition.

Despite persistent volatility in global energy markets, the organization stated that the international gas sector is currently in a stronger position than during the energy shock of 2021–2022. The report attributed this improved resilience to large-scale investments in LNG infrastructure, expanded regasification capacity, diversified supply sources, and more flexible commercial arrangements between producers and buyers.

The IGU added that these developments helped limit the severity of recent gas price increases and strengthened the ability of global markets to respond to supply disruptions. Nevertheless, the organization warned that geopolitical uncertainty, evolving energy transition policies, and fluctuating demand patterns could continue to affect pricing trends in the coming years.

For Morocco, the report highlights the ongoing challenge of balancing energy security with import costs while the country continues expanding its energy diversification strategy, including renewable energy development and plans related to future natural gas infrastructure projects.