Sound Energy submits application for Tendrara development concession

Upstream gas company Sound Energy has submitted an application for a development concession regarding the Tendrara gas discovery in Morocco.

The application submission to the Morocco Ministry of Energy marks a key development in bringing Tendrara into production.

It covers the technical and commercial aspects of the field development plan, as well as the outline of the development area.

The company operates the project and began exploration activities in June 2015.

The move comes after the company signed a front-end engineering and design (FEED) contract agreement with a consortium comprising Enagas, Elecnor and Fomento, to develop its existing gas discovery.

Pursuant to the terms of the contract, the consortium will build a 20in gas pipeline and a processing plant under a build-own-operate-transfer (BOOT) structure.

Sound Energy CEO James Parsons said: “I am delighted with the achievement of this important milestone with the first, development concession in Eastern Morocco.

“The concession award, expected later this year, will be a significant step to both de-risk the development and commercialise the gas discovery.”

“The company continues to make excellent progress on all fronts and, in addition to the FEED award announced on 7 June, the company continues to advance discussions in relation to a gas sales agreement.”

Once Tendrara becomes operational, the company expects to produce around 60 million standard cubic feet a day of natural gas.

Sound Energy intends to monetise the production through a proposed 120km pipeline to the Gazoduc Maghreb Europe (GME) pipeline, which is part of the FEED contract.

The company will finalise plans to gain access to $184m in project development capital funding.