Morocco has hit the brakes on its ambitious plan to build a $1 billion Nador West Med LNG terminal on its Mediterranean coast, a project originally designed to swap out dirtier fuels for cleaner energy imports. The Energy Ministry announced an indefinite freeze on the venture which included the construction of pipelines linking the Nador West Med port to key industrial hubs citing shifting “parameters and assumptions.” While the ministry still views the project as “highly strategic,” this sudden pivot comes just days after King Mohammed VI met with top officials, including Energy Minister Leila Benali, to discuss the port’s future.

The pause is particularly striking given the scale of the investment and the initial momentum behind it. Just this past December, the government issued tenders that drew significant interest from both local and international operators.

Capacity of the Nador West Med LNG Hub

The proposed terminal was intended to be a powerhouse, boasting a capacity of 5 billion cubic meters (bcm) per year. This figure dwarfs the country’s current annual demand of 1.2 bcm. This facility was supposed to be a cornerstone of Morocco’s broader $3.5 billion energy roadmap which aims to quintuple gas consumption by 2030 through additional terminals along the Atlantic coast.

The announcement has left several question marks regarding the project’s immediate timeline and components. Specifically, it remains unclear how this freeze affects a separate, ongoing tender for a floating storage and regasification unit (FSRU). The unit would be stationed at Nador. The pre-selection deadline for that tender having passed on January 30. However, the ministry is currently staying silent on further details. This leaves the energy sector waiting to see how Morocco will realign its lofty gas ambitions with these new strategic realities. Also, in another similar projects, Morocco seeks to bolster its fuel capacity with the development of the ambitious Nigeria-Morocco pipeline project.

Project Factsheet

Project name: Nador West Med (NWM) LNG Import Terminal & National Gas Pipeline Network.

Primary objective: To establish Morocco’s first deepwater LNG entry point. It will also reduce dependence on coal/fuel oil, and secure energy sovereignty following the 2021 halt of Algerian gas supplies.

Current status: Indefinitely Paused (as of February 2, 2026) for “new parameters and assumptions.”

Original operational target: Second half of 2026 / Early 2027.

Terminal type: Floating Storage and Regasification Unit (FSRU)

Location: Nador West Med Port (Mediterranean Coast)

Design capacity: 5.1 Billion Cubic Meters (bcm) per yearExpansion Potential Up to 7.5 bcm per year.

Total estimated phase 1 cost: $954 million (MAD 9.54 billion).

FSRU terminal: $273 million (MAD 2.73 billion).

Pipeline infrastructure: $680 million (MAD 6.8 billion).