Small scale LNG in the Moroccan desert

11 Mar 2020 - ConferenzaGNL

Small scale LNG in the Moroccan desert

The Moroccan company Sound Energy, specialized in the exploration and production of natural gas, claimed to have shifted its attention to the production of small-scale production in the TE-5 Horst field, as part of the Tendrara production concession in the desert north-east of the country, near the border with Algeria.

As reported by LNG World News, the company continues the full development plan of the field focused on a 120 km pipeline infrastructure to connect to the “Maghreb-Europe”, the pipeline that brings natural gas from the Algerian fields to Gibraltar. However, giving priority to the first initial cash flows from the concession, it envisages a micro-liquefied natural gas production plant before the complete implementation of the development of the field.

The small scale LNG production program, which will require the agreement of the partners of the concessionaire’s joint venture, foresees the first deliveries in 2021 with the transport to industrial customers of Morocco. Negotiations are underway with the Moroccan National Office of Electricity et de l’Eau Potable for a marketing agreement.

The LNG production plan will be carried out at the same time as the works relating to the development plan in the field, considered by the company an interesting path to generate cash flows anticipated by the concession. The complete development of the gas pipelines can be achieved later, given the longer timescales necessary for its implementation.

Negotiations are already underway with potential suppliers of the micro liquefaction plant and with financial institutions. In agreement with the joint venture partners the company expects to be able to make a final investment decision in the second quarter of 2020.

Source: LNG World News

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