Morocco invests in fuel storage expansion

Morocco is moving ahead with a 6-billion-dirham ($600 million) investment program to expand fuel storage capacity and improve supply security,as authorities seek to strengthen the resilience of the country’s liberalized petroleum market despite the continued absence of domestic refining capacity.

Energy Transition Minister Leila Benali told parliament on Monday that the program aims to increase storage infrastructure and ensure a more balanced regional distribution of reserves,reducing reliance on a limited number of port-based facilities.

The investment comes after a more than 30% rise in national petroleum storage capacity between 2021 and 2025,equivalent to an additional 17 days of consumption.

Benali said the expansion reflects a “qualitative advance” in Morocco’s energy infrastructure,linking it to broader efforts to secure supplies and improve management of strategic reserves. The government has made storage capacity a central pillar of its energy policy in recent years,particularly in response to volatility in global fuel markets.

While the expansion of storage capacity is expected to improve short-term supply security,Morocco continues to face a key structural limitation,notably the lack of domestic refining capacity.

Since the closure of its only refinery in 2015,the country has relied almost entirely on imports of refined petroleum products,exposing it to international price fluctuations and supply chain risks.