Sound Energy, the Moroccan focused upstream gas company, said it has received the EIA approval and land corridor rights from the Moroccan Ministry of Energy, Mines and Environment for the Tendrara Gas Export Pipeline project.
Earlier in February, said it has shifted its focus to pursuing a micro LNG production plan for the TE-5 Hirst field within the Tendrara production concession.
Sound Energy said that 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 said it has now received the EIA approval related to the building of the proposed gas treatment plant and compression station (CPF) at the Concession, including the option for gas liquefaction.
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.
The company added it is continuing to progress the TGEP-led full-field development of the Concession alongside the LNG production strategy, adding that 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 percent of the entire length of the 50m 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 is taken.
Sound Energy added that it is continuing Tendrara gas sales agreement negotiations but binding GSA is not expected to be entered into prior to March 31, 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 March 31, 2020, the company expects to enter into a further extension to the previously entered GSA MOU shortly.