British Firm Sound Energy Revives Maghreb-Europe Gas Pipeline with New Moroccan Deal

"Sound Energy, Graham Lyon, Executive Chairman of Sound Energy, said it has concluded the GSA, which adds to the conditional gas sales agreement related to the development of the TE-5 Horst phase 1 natural gas liquefaction project concluded by the company with Afriquia Gaz and announced by the Company on July 29, 2021, in parallel with its agreement with ONHYM (National Office of Hydrocarbons and Mines) belonging to the State Tendrara Production Concession partner and with the Group the "Tendrara JV Partners)," says a statement from the British gas company relayed by La Razon. In total, an annual contractual volume of up to 350 million cubic meters of natural gas per year will be delivered to the GME for 10 years under this agreement between ONEE and Sound Energy.

What about the required conditions? We can mention the granting of all necessary authorizations and permits for the construction of the phase 2 gas facilities and the final investment decision approval by the Ministry of Energy, Transition and Sustainable Development and the Ministry of Economy and Finance, the conclusion of an interconnection agreement between Sound Energy and the company in charge of operating the GME, and the start of the connection work between the Tendrara field and the GME. These conditions must be met within 90 days of the signing of the agreement, but an extension is allowed with the consent of all parties, the statement said.

"We are delighted that the UK/Morocco partnership, ONHYM and Sound Energy is working well, and such a commercial partnership can strengthen, with the strong support of our shareholders and local partners, the expected economic growth of 5.7% of the Kingdom of Morocco despite the Covid-19 pandemic," said Graham Lyon, Executive Chairman of Sound Energy. According to him, the GSA agreement is an important and long-awaited step that will allow the company to advance development planning for the proposed phase 2 development of TE-5 Horst.