British Firm Sound Energy to Develop Small-Scale LNG Facility in Eastern Morocco

In a press release, Sound Energy announced that it has signed an exclusive five-year contract with the company Italfluid Geoenergy. The latter will be responsible for the design, construction, commissioning, operation and maintenance of a small-scale LNG plant, which will receive gas from the Tendrara concession in eastern Morocco. According to the terms of the contract, the British group has granted Italfluid an exclusivity period until March 31, 2021.

The contract specifies that Sound Energy will pay Italfluid an initial amount of $5 million within 30 days of the Tendrara development decision and an additional $2 million within 30 days of the commissioning of the LNG plant. In addition, Italfluid will receive $36,000 per day the plant delivers a guaranteed volume during the term of the contract.

Sound had decided to extend the deadline for exclusive negotiations to sign a contract with a Moroccan conglomerate on future sales from the LNG plant for the period from December 31, 2020 to March 31, 2021. It is on this date that the British gas company hopes to make a final investment decision for the development of the Tendrara plant.