Moroccan Gas Giant Afriquia Partners with UK’s Sound Energy in 10-Year LNG Deal

A minimum of 100 million cubic meters of LNG will be sold each year to the Akwa Group subsidiary under the agreement between Sound Energy and Afriquia gaz, according to a statement from the British company. The latter has undertaken to supply the Moroccan leader in the distribution of liquefied petroleum gas, butane and propane with a daily quantity between 475 and 546 cubic meters of LNG.

The point of sale will be located on the Tendrara site, after treatment and liquefaction of the gas, with Afriquia being responsible for the transport and delivery to its downstream customers, the same source adds, stating that the selling price will vary between 6 and 8 dollars per million BTU (British thermal unit). The implementation of the agreement notably implies the execution of a credit note agreement between Sound Energy (as borrower) and Afriquia (as lender) no later than October 29, 2021. This credit note agreement will set out the terms of a guaranteed loan of 18 million dollars, with an annual coupon of 6% and a term of 12 years.

In addition, Afriquia has entered the capital of Sound Energy (2 million pounds sterling). "This operation cements the strategic alignment between Sound Energy and Afriquia Gaz. It is a key step towards the final investment decision and the realization of the development plan for production on the TE-5 Horst deposit in the Tendrara concession," said Graham Lyon, executive chairman of the British company.