Sound starts groundwork for Moroccan micro-LNG plant
London-listed Sound Energy announced on social media on March 28 that it had begun preparing the ground for the construction of a micro-LNG plant in Morocco as part of the first phase of its Tendrara gas development.
The announcement comes after Sound in mid-February issued a notice to proceed to contractor Italfuid Geoenergy to begin building the plant. Pictures posted by Sound on social media show that construction vehicles have now begun levelling the site.
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The plant's construction is fully funded, after Sound secured a $18mn loan at the end of December. Sound has agreed to sell 100mn m3/year of gas from the facility to local fuel distributor Afriquia Gaz on a take-or-pay basis, with the price fixed at $6.00-8.346/mn Btu.
The second stage of Tendrara's development is much larger in scale, and will involve the development of a 120-km pipeline to link the concession with the Maghreb-Europe gas system. Sound reached an agreement in November last year to sell 350mn m3/yr of gas from this phase to Moroccan state power company ONEE, with a take-or-pay requirement of 300mn m3/yr.