Sound Energy’s Moroccan gas pipeline update
Published by Lydia Woellwarth,
Sound Energy, the Moroccan focused upstream gas company, is pleased to provide the following Eastern Morocco update, confirming receipt of a further environmental impact assessment (EIA) approval and land corridor rights in respect of the Tendrara Gas Export Pipeline (TGEP).
EIA of the gas treatment plant and compression station (including liquefaction)
On 17 February 2020, the Company announced its plan to pursue the first phase of TE-5 Horst development at the Tendrara Production Concession (the Concession) via a micro LNG production plan. Negotiations are ongoing with equipment providers for the LNG production facility solution and with industrial customers and distributors in relation to a gas offtake agreement.
The Company also announced that it has now received the EIA approval from the Moroccan Ministry of Energy, Mines and Environment related to the building of the proposed gas treatment plant and compression station (CPF) at the Concession, including the option for gas liquefaction. Receipt of the CPF EIA approval follows meetings of the National Committee from the Moroccan Ministry of Energy, Mines and Environment to review the CPF EIA held on 10 October 2019 and 28 January 2020 and receipt of EIA approval for the 120 km TGEP connecting the proposed CPF to the Gazoduc Maghreb Europe pipeline (GME), as announced by the Company on 13 January 2020.
Inclusion of gas liquefaction within the CPF EIA approval enables the LNG development planned as Phase 1 of the Concession field development plan, with the TGEP led full field development of the Concession following as Phase 2.
Tendrara Gas Export Pipeline corridor rights
The Company continues to progress the TGEP led full field development of the Concession alongside the LNG production strategy and advises that, following discussions with representatives of Morocco's Ministry of Interior and of the Forestry Department to obtain rights through a long-term lease agreement for a 50 m wide corridor along the entire 120 km length of the TGEP, formal land access approvals have been received from the Ministry of Interior and the Forestry Department and the Company will now seek to agree the tariff for the land access with the Ministry.
The land access approvals now received relate to land covering 99.9% of the entire length of the 50 m wide TGEP corridor and the remaining land approvals required, covering land required for the three principal blacktop roads and five river crossings along the TGEP route, are to be sought at a later date, after final investment decision (FID) is taken.
The Company believes that the developments described above are important milestones in the process of developing and commercialising the Concession and as the Company progresses towards the FID (when binding development capital commitments are to be made) for each phase of the Concession field development.
Tendrara Gas Sales Agreement (GSA) MoU
The Company confirms that GSA negotiations continue but announces that a binding GSA is not expected to be entered into prior to 31 March 2020. In order to extend the period for negotiations of the final GSA with Morocco's Office National de l'Electricité et de l'Eau Potable (ONEE), the state power company of Morocco, beyond 31 March 2020, the Company expects to enter into a further extension to the previously entered GSA MoU shortly.
Read the article online at: https://www.worldpipelines.com/project-news/24032020/sound-energys-moroccan-gas-pipeline-update/
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