Sound Says Morocco Pipe Gets Initial OK
UK-listed Morocco gas explorer Sound Energy said it has received written confirmation of a planned 120-km pipe from its fields to key export infrastructure.
The company said August 1 that a local authority in eastern Morocco (a district in the L'Oriental region) had confirmed its "preliminary approval" for the proposed route of its planned gas pipe needed to transit gas from Sound's eastern Moroccan interests to the Gazoduc Maghreb Europe (GME) pipeline.
This preliminary approval, which will now be followed up by engineering and commercial activities necessary to support final authorisation, is another step in the development of the infrastructure required to support the early monetisation of gas from the TE-5 Horst discovery at Tendrara.
GME is one of two key trunklines for the export of Algerian gas to Spain; the other is the subsea Medgaz pipe which does not transit Morocco.
Moroccan investor OGIF and Sound in January 2017 reached an understanding whereby OGIF shareholders may fund the 120-km pipe to link to GME. Sound said a year ago that it expected the 120-km pipe would cost $50mn to build.