Casablanca – The Tendrara natural gas project in eastern Morocco has entered a new phase marked by the successful commissioning of key infrastructure, the initial flow of production wells, and the extension of exploration permits, signaling a transition from development to early-stage industrial exploitation.

Led by Sound Energy in partnership with Moroccan stakeholders, the project has been under development for several years, with a focus on building surface facilities, testing wells, and preparing for future production. Recent operational milestones now place Tendrara closer to achieving its first commercial gas output, while also strengthening the outlook for continued exploration in the region.

Infrastructure commissioning and well testing

Sound Energy announced that two development wells, TE-6 and TE-7, have been successfully brought into test flow as part of commissioning operations. These tests were conducted to validate the Gas Gathering System, which forms the backbone of the project’s surface infrastructure. The system includes wellheads, gathering pipelines, control valves, heat exchangers, liquid separation units, and flaring facilities, all designed to ensure safe and efficient gas handling from the wellhead to downstream processing.

The two wells, located approximately two kilometers apart, were used to test different sections of the network under operational conditions. The successful validation of these facilities represents a major technical milestone and confirms the industrial readiness of Phase I of the project. This stage is considered a prerequisite for ramping up production volumes and achieving first commercial gas.

According to project partners, the completion of commissioning demonstrates that the development phase has moved beyond construction into operational execution, where performance, reliability, and safety now become the primary measures of progress.

Transition toward gas-powered operations

Alongside upstream progress, Tendrara has also advanced on the energy supply side of operations. The site has been equipped with nine high-capacity power generators, seven of which are designed to operate on natural gas and two on diesel. These containerized units are intended to provide a stable and continuous electricity supply under challenging climatic conditions.

In the coming weeks, the gas-powered generators are expected to be commissioned using locally produced gas, following the separation of hydrocarbon liquids. This transition is designed to gradually replace diesel use on site, leading to lower operating costs and reduced direct carbon emissions.

The shift to gas-powered operations aligns with broader goals of improving energy efficiency and environmental performance, while also reinforcing the economic case for early production by reducing reliance on imported fuel.

Extension of exploration permits and drilling commitments

Beyond the initial development area, Sound Energy has secured an official extension of its Anoual exploration permits, which are now valid until September 2028. The extension was approved by Moroccan authorities and comes with a reduction in the licensed area to just over 5,000 square kilometers, in line with regulatory requirements for entering the additional exploration period.

In exchange, the project partners have committed to drilling a new exploration well targeting Triassic geological formations, which are considered promising in eastern Morocco. The planned M5 well will be operated by Mana Energy, alongside Sound Energy and Morocco’s National Office of Hydrocarbons and Mines.

To manage financial exposure during this still-exploratory phase, Sound Energy’s contribution to the M5 well has been capped. This structure limits downside risk while preserving upside potential should the well confirm commercially viable resources.

If the drilling program is successful, the contractual framework allows for the launch of a follow-up exploration phase, potentially including new 3D seismic surveys and additional wells. Such a program would aim to refine subsurface understanding and support longer-term development planning in the region.

Financing considerations and market response

As the project approaches first production, short-term financing remains an active consideration. Sound Energy has indicated that it continues to assess bridge financing solutions to ensure continuity of operations until cash flows begin. This transitional financing is intended to cover operating expenses and final commissioning costs during the period before commercial revenues are generated.

Despite this, the operational progress at Tendrara has been positively received by the market. Following the announcements, Sound Energy’s shares rose on the London Stock Exchange, reflecting investor confidence in the project’s technical execution and strategic direction.

Analysts note that the combination of infrastructure readiness, early well flow, and secured exploration permits materially improves the project’s risk profile compared with earlier stages of development, when technical and regulatory uncertainties were higher.

Strategic implications for Morocco’s energy landscape

The advancement of the Tendrara project carries broader implications for Morocco’s energy strategy. The Kingdom has long sought to diversify its energy mix, strengthen domestic supply, and reduce dependence on imported fuels. Domestic natural gas production, even at moderate scale, is seen as a valuable complement to renewable energy investments and regional gas infrastructure.

Tendrara is positioned as one of the most advanced onshore gas projects in the country, and its progress supports the broader objective of enhancing energy security while supporting industrial and economic development in eastern Morocco.

The project also contributes to Morocco’s role as an emerging player in natural gas within North Africa, a region where gas remains a key transition fuel in the shift toward lower-carbon energy systems.

From development to industrial execution

With surface facilities completed, wells flowing, and exploration plans extended, Tendrara is moving from the development stage into early industrial execution. This transition marks a shift in focus from construction and permitting toward operational performance, cost control, and production reliability.

Observers emphasize that while challenges remain—particularly in financing and scaling production—the recent technical milestones demonstrate that the project is no longer speculative but operationally grounded. The coming months, including the commissioning of gas-powered generators and progress toward first commercial gas, will be critical in determining the pace and scale of future development.

As Tendrara enters this new phase, its performance will serve as a key benchmark for onshore gas development in Morocco, shaping investor confidence, regulatory engagement, and the outlook for further exploration across the eastern region.