Casablanca – Sound Energy, a prominent player in the energy sector, has embarked on significant initiatives to bolster Morocco’s energy infrastructure and meet its rising demand for liquefied natural gas (LNG). Recently, the company launched refurbishment works at the Tendrara gas concession in late May, essential for supporting the installation of a micro LNG plant on-site.

The refurbishment efforts focused on wells TE-6 and TE-7, crucial for long-term production stability. Sound Energy successfully replaced aging completion tubing with corrosion-resistant materials, ensuring these wells are ready to supply gas for the forthcoming micro LNG plant. This plant, expected to be operational later this year, will have the capacity to liquefy approximately 100 million cubic meters of gas annually, contributing significantly to Morocco’s domestic energy needs.

In tandem with these operational advancements, Sound Energy secured a binding gas sales agreement with Afriquia Gaz. This agreement spans ten years, committing Sound Energy to deliver 100 million standard cubic meters of LNG per annum. The pricing, set between $6 to $8.346 per mmBTU ex-plant, includes a take-or-pay clause, ensuring stability for both parties in the agreement.

To support its LNG production goals, Sound Energy has finalized critical agreements and permits. This includes obtaining an Environmental Impact Assessment (EIA) permit for its LNG Central Processing Facility (CPF) and signing a Letter of Intent (LOI) with Italfluid Geoenergy S.r.l. Italfluid will undertake the design, construction, operation, and maintenance of the micro LNG plant under a structured lease agreement that also offers an option for Sound Energy to purchase the facility in the future.

The phased development approach adopted by Sound Energy integrates existing well assets with strategic drilling plans to maintain production levels over the ten-year contractual period. This strategy not only optimizes resource utilization but also mitigates operational risks associated with gas extraction and processing.

Looking ahead, Sound Energy’s commitment to sustainable energy solutions underscores its role in Morocco’s energy landscape. Beyond Phase 1 of its Tendrara project, which focuses on LNG production from mid-2025, the company is exploring Phase 2 feasibility, which aims to expand gas supply capabilities through additional infrastructure developments, including a pipeline connection to the Maghreb-Europe Gas Pipeline (GME).

This forward-thinking approach not only supports national energy security but also aligns with Morocco’s broader economic goals of diversifying its energy mix and enhancing industrial competitiveness through reliable gas supply. Sound Energy’s partnerships with local stakeholders and international investors, including the recent acquisition by Groupe Managem, highlight its strategic positioning and commitment to sustainable growth in the region’s energy sector.

As Sound Energy progresses with its ambitious plans, it continues to set benchmarks in operational excellence and sustainability, ensuring a reliable and efficient energy supply that meets the evolving needs of Morocco’s dynamic industrial sector and broader economy.