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    Sound tells contractor to proceed on Morocco's Tendrara Phase 1

Summary

The notice was issued after Sound paid a $5mn initial payment to Italfluid.

by: Joseph Murphy

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Complimentary, NGW News Alert, Natural Gas & LNG News, Africa, Liquefied Natural Gas (LNG), Corporate, Exploration & Production, Contracts and tenders, News By Country, Morocco

Sound tells contractor to proceed on Morocco's Tendrara Phase 1

London-listed Sound Energy has issued a notice to proceed to contractor Italfluid Geoenergy to begin work on a micro-scale LNG plant at the Tendrara gas concession in Morocco, the company announced on February 16.

The LNG facility will be built as part of the first stage of Tendrara's development. The project is now fully funded, after Sound secured a $18mn loan at the end of December. The notice to proceed was issued after Sound paid a $5mn initial payment to Italfluid.

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Sound has agreed to sell 100mn m3/year of gas from the plant to local fuel distributor Afriquia Gaz on a take-or-pay basis, with a 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.