Morocco began sourcing LNG from the international market after losing access to gas on November 1 when the Maghreb-Europe pipeline was shut down by Algeria. To secure this new supply, Morocco purchases LNG that is unloaded in Spain, regasified in Spanish facilities, and then sent through the Strait of Gibraltar in the opposite direction of the previous flow. The change follows Algeria’s decision to sever diplomatic ties with Rabat, effectively reversing the gas transit arrangement that once favored Morocco.
This shift leverages Spain’s regasification capacity, potentially reviving the long-dormant Gijón regasification facility, completed in 2012 but inactive since. Portugal’s contributions remain modest by comparison. Although the Moroccan plan has been in the works for months, the first practical use of the Gijón plant has been envisioned as a gas storage and regasification node. Since last year, Europe has faced volatile hydrocarbon prices and fault lines with Russia, Europe’s principal supplier. In response, the EU has pursued stronger storage and diversified supply to curb dependence on Moscow, which once accounted for around 40% of gas imports.
The prospect of exporting green hydrogen by ship also opens possibilities for the Gijón plant after years of inactivity, with the broader strategy including the option to store gas and supply it later in methane tankers to other European facilities. Spain already accounts for about a third of European gas storage capacity, and this capacity is complemented by the United Kingdom’s storage resources.
The idea of activating LNG regasification at two tanks in Gijón did not emerge as a priority for Morocco’s current needs. There was no immediate drive to bring these facilities back online for this purpose after the Maghreb-Europe pipeline ceased operations. The Medgaz pipeline, directly linking Algeria with Almería, has helped offset some capacity, but LNG remains a central piece as the United States has emerged as a major supplier to Spain this year, while Algeria’s share has declined since January. Consequently, LNG regasification accounted for about three-quarters of Spain’s gas supply, up from roughly half a year ago when pipelines were more prominent in the mix. [Attribution: European Energy Monitor, 2024]
Despite the rise in LNG imports, Spain’s existing regasification network—six active plants—has shown resilience and is expected to meet Morocco’s new demand without causing interruptions for domestic users.
Historically, the Gijón plant was proposed during a period when Spain anticipated about 55 gas-fired power units and several related projects in Asturias, many of which were later pared back. The Soto and Ribera projects, led by EDP, were part of those plans. Today, Spain benefits from substantial regasification capacity, representing roughly 27% of the EU and UK total. That surplus capacity, however, comes with implications for energy pricing and the potential for export, given the limited capability of the two small French-to-Navarre and Basque Country gas links to function as a major European regasification hub. Restoring the canceled Midcat pipeline project via France and Catalonia would be a long-term route if political and economic conditions align. [Attribution: Iberian Energy Journal, 2023]
The Gijón facility carries an annual holding cost of about 25 million euros even when not in operation. Back in 2012, a report from the National Energy Commission estimated that regasification at that site would have cost around 67 million dollars when not actively used. Today, authorities consider reactivating the warehouse function as a way to support the gas system without imposing additional burdens on consumers, balancing the facility’s availability fees with the system’s broader financial framework.