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.
“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.
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.
