Casablanca – The Tendrara gas development in eastern Morocco has entered a decisive new phase, with the project now circulating its first gas volumes through the collection network. The milestone signals the transition from construction and testing toward the start of industrial-scale production of liquefied natural gas (LNG), scheduled for 2026. For Morocco, the advancement marks a major step in efforts to diversify its energy mix and reinforce long-term supply security.

Developed jointly by Sound Energy, Mana Energy Ltd, and the National Office of Hydrocarbons and Mines (ONHYM), the Tendrara project has been under preparation for several years. The initial discovery dates back to 2019, and development works formally began in 2022. While the project had originally been targeted for commissioning in mid-2025, final technical work extended the schedule by roughly six months.

Commissioning begins after installation of key SCADA system

The significant progress announced in early December 2025 follows the installation of the last essential component of the Gas Gathering System (GGS): a SCADA supervision and control unit delivered on November 28. Once integrated into the infrastructure, the system enabled the safe routing of gas from the TE-6 production well into the network for the first time.

This commissioning process involves a series of technical tests designed to validate equipment performance, reliability, and safety. According to the operators, the work has proceeded in line with the multi-phase plan established in 2024, which outlines successive steps leading to the start of LNG production.

The TE-6 well, along with TE-7 and an additional future well, will supply gas to a micro-LNG plant currently under construction at the site. The facility is being designed, built, and operated by Italian firm Italfluid Geoenergy, which specializes in small-scale LNG solutions. Once operational, it will liquefy the collected gas, enabling flexible delivery to domestic industrial clients.

Reconditioning and infrastructure upgrades completed

During 2025, Sound Energy and its partners undertook significant reconditioning work at the concession to extend the operational life of the TE-6 and TE-7 wells. These upgrades included the installation of corrosion-resistant completion tubing and the demobilization of drilling equipment after successful redevelopment operations. The objective is to maintain a stable production plateau for at least ten years, corresponding to the duration of the project’s first commercial phase.

The development is considered the first major onshore natural gas exploitation initiative in Morocco. For policymakers and investors, it represents the practical start of a long-anticipated shift toward locally sourced gas, a resource valued both for industrial use and as a transitional fuel in the national energy strategy.

Long-term sales agreement secures revenue stream

A foundational pillar of the project’s financial structure is a long-term gas sales contract signed with Afriquia Gaz. Under the agreement, the company commits to purchasing 100 million cubic meters of gas per year for a period of ten years from the first delivery date.

The price will follow a formula indexed to the Dutch TTF and U.S. Henry Hub benchmarks, ranging between $6 and $8.35 per MMBtu in a take-or-pay format. This arrangement ensures predictable revenues for Sound Energy and its partners and provides a stable supply source for Moroccan industrial clients seeking to reduce their dependence on imported fuels.

The micro-LNG plant is expected to be fully operational between late Q1 and Q2 of 2026, enabling the first commercial deliveries within that timeframe.

Phase 2 could supply the national electricity market

While Phase 1 focuses on small-scale LNG deliveries, a more ambitious Phase 2 remains under study. The second phase would involve constructing a 120-kilometer pipeline linking Tendrara to the Maghreb-Europe Gas Pipeline (GME). This infrastructure could potentially provide up to 40% of Morocco’s gas needs and support long-term supply contracts for the national electricity operator.

The transition from LNG to pipeline-based supply would represent a strategic expansion for the project, enabling larger volumes and broader economic impact.

Strategic importance for Morocco’s energy transition

Morocco’s broader energy transition aims to reduce dependence on imported coal and petroleum products. Domestic gas production is expected to play a bridging role, especially in industry and electricity generation. Tendrara, as the country’s first onshore LNG-producing field, is therefore viewed as a flagship initiative demonstrating the feasibility of local gas development.

Sound Energy holds a 20% stake in the concession, Mana Energy Ltd holds 55%, and ONHYM retains 25%. Company representatives emphasized that the start of commissioning marks the beginning of a “new chapter,” with the project shifting from development to revenue generation.

As construction of the micro-LNG facility continues and preparations advance for future phases, Tendrara is poised to become a significant contributor to Morocco’s evolving energy landscape over the coming decade.