Sound Energy continues gas sales discussions with Morocco authorities

Morocco-focussed upstream gas company Sound Energy confirmed continued positive discussions with the country’s Office National de l'Electricité et de l'Eau Potable (ONEE) and the Moroccan Minister of Energy on Thursday, in relation to a gas sales agreement.

The AIM-traded firm said the minister had affirmed his intention that the agreement would cover all of the gas to be produced from the recently-awarded Tendrara production concession, onshore Morocco.

It said the gas sales agreement was a “critical next step” that Sound Energy and its partners required, ahead of taking a final investment decision on the development.

“The Tendrara development has the potential to offer Morocco both a new strategic domestic gas supply source, thereby reducing its dependency on Algerian imports, and significant new gas transportation infrastructure in the East of Morocco connected to the Gazoduc Maghreb Europe pipeline,” the Sound Energy board explained in its statement.