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Gas: Sound Energy seals a new agreement with ONEE

The British company Sound Energy announced on Tuesday that it had concluded a new “binding” gas sale and purchase agreement with the National Electricity and Drinking Water Office (ONEE), concerning the development of phase 2 of the Tendrara production concession.

This agreement therefore relates to the sale of natural gas from the said concession located in eastern Morocco over a period of 10 years. It comes after the conclusion, at the end of July, of a gas sale agreement linked to the development of liquefied natural gas (LNG) for phase 1 of the operation of the TE-5 Horst well concluded with Afriquia Gaz. Through the new agreement, Sound Energy and its partners undertake conditionally to “produce, process and deliver gas from the Tendrara concession, in accordance with the gas specifications required from ONEE, to the Maghreb-Europe Gas Pipeline (GME) connecting Algeria to Spain and crossing Morocco ”.

The contract covers an annual volume of up to 350 million m3 of natural gas per year for a period of 10 years, “with an annual volume of intake or payment of 300 million m3”. However, the agreement remains subject, among others, to several conditions, including the granting of all authorizations and permits necessary for the construction of the gas installations of phase 2, to the final approval of the investment decision by the partners, the Ministries of Energy Transition, and of Sustainable Development and of the Economy and Finance.

All conditions of the agreement must also be fulfilled “within 90 days of signing”. But, an extension is allowed with the consent of all parties, the company says.

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