LNG

SDX Energy plc, the UK-based oil and gas exploration and production company, said it started drilling the Ksiri-21 well in the Sebou Central area of the Gharb Basin in the North African kingdom of Morocco.

SDX Energy plc, the UK-based oil and gas exploration and production company, said it had received multiple offers for its Egyptian natural gas assets and was considering them.

SDX Energy Plc, the UK-based exploration and production company with interests in Morocco and Egypt, has announced a successful two-well Moroccan drilling campaign that opens up a new producing area.

Spanish Prime Minister Pedro Sanchez said the European Union should pay for pipeline interconnections with Spain if they wish to have alternative supplies to replace Russian gas from Gazprom.

Enagás, the Spanish gas grid and LNG terminals operator as well as a shareholder in the Trans-Adriatic Pipeline (TAP), said the US was its main liquefied natural gas supplier in the first quarter followed by Algeria and Nigeria as LNG deliveries increased substantially and European Union gas supplies became tight.

Algeria and Italy said they had signed an agreement for the North African nation to supply more natural gas to European Union member Italy to replace falling supplies from Russia.

Sonatrach, the Algerian state energy company and LNG exporter, said it was putting into service on January 4 the compression system booster of the Medgaz natural gas pipeline from Algeria to Spain and Portugal.

Italian energy company Eni has agreed to sell a minority stake in two pipelines involved in transporting natural gas from Algeria to Italy for €385 million ($435M) to Italian LNG terminal and gas grid operator Snam.

Algeria said it was fulfilling all its pipeline natural gas and LNG contract obligations to supply Europe and volumes would soon be raised for Spain from current levels as a pipeline expansion comes on stream.

Sound Energy, the UK company with natural gas assets in Morocco and an LNG production proposal, has reported progress on several fronts, including sales, finance and engineering.

The company is planning to develop a micro-LNG plant for the Tendrara 5-Horst gas well in its Tendrara production concession in eastern Morocco, near the Algerian border.

The micro-LNG plant is part of a full field development plan centred around the construction of a 120-kilometre pipeline going north to link with the Maghreb-Europe pipeline.

Graham Lyon, Executive Chairman, said that there had been positive developments for the Tendrara concession, including on a commercial gas sales contracts and Phase 1 engineering of the micro-LNG plant.

A company called Afriquia Gaz SA has signed a conditional LNG sales agreement.

Afriquia Gaz  is Morocco-based and is currently engaged in the refining and marketing of liquefied petroleum gas (LPG).

“The agreement covers a 10-year, take-or-pay LNG sale and purchase at Tendrara,” said Lyon.

Sound Energy is also negotiating an $18 million loan from Afriquia Gaz.

The company added that there has also been activity covering the pipeline development discussions.

“A huge amount of work has been completed so far this year and much remains to be concluded during the remainder of 2021,” said Chairman Lyon.

“Having secured a long-term LNG sales agreement with Afriquia Gaz, we have established a route to market for our gas and following completion of the proposed $18M loan from Afriquia Gaz, the company will have financing for the Sound Energy share of the Phase 1 development,” he explained.

Afriquia Gaz has received £2.0 million ($2.8M) of share equity at 1.25 UK pence per share in connection with the LNG sales agreement, thus providing Sound Energy with more liquidity.

The LNG sales agreement with Afriquia Gaz commits the buyer to purchase not less than 100,000 cubic metres per annum produced and liquified from the Phase 1 development concession joint venture.

“With important catalysts to come in the near term, I look forward to updating shareholders further as we progress towards the development phase of the project and to becoming a revenue generating business,” he stated.

The company said the Tendrara Horst field would help provide domestic LNG to industrial users in Morocco, displacing presently imported fuels with a deeper carbon footprint.

Sound Energy was also able to successfully restructure its Luxembourg-listed €28.8M, 5-percent senior secured notes by engaging proactively with noteholders to agree a suitable restructuring without substantial equity dilution.