An agreement has been signed between l’Office National des Hydrocarbures et des Mines (ONHYM) and Sound Energy, the Tendrara Export Pipeline project developer, to connect to the Maghreb-Europe gas pipeline (GME).
According to the London-listed upstream gas company, ONHYM approved the Tendrara Production Concession’s connection to the Maghreb-Europe pipeline via a gas export spur pipeline as part of the agreement.
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In the agreement, ONHYM, the acting operator of the Gas Maghreb-Europe pipeline, agreed to build a connected infrastructure between the Tendrara export pipeline and the Gas Maghreb-Europe pipeline, allowing all GME clients to receive Tendrara gas.
Boost to one of the crucial remaining conditions to Sound’s binding gas sale and purchase agreement
Sound Energy explained that the execution of the Pipeline Tie-in Agreement finalizes one of the crucial remaining conditions to its binding gas sale and purchase agreement, the GSA, regarding the Phase 2 development of the Tendrara Production Concession with Morocco’s power Company ONEE, Office National de l’Electité et de l’Eau Potable for selling natural gas from the Tendrara Concession in Eastern Morocco over a decade.
The firm stressed that it received all required permissions for the Phase 2 gas installation’s construction. The tie-in agreement to the GME, according to Sound Energy’s Executive Chairman Graham Lyon, is an additional step toward a final investment decision on the Tendrara production concession’s Phase 2 development.
He said that the development was a crucial aspect of the plan for the future Moroccan energy supply presented by the Energy Ministry in August 2021.
Reported earlier
Tendrara Export Pipeline to be 120km long
A 120-km natural gas pipeline is set to be constructed in Morocco. This is after the nation’s Ministry of Energy gave British industrial company Sound Energy approval for the project development.
According to a statement released by the company, the project passed environmental impact assessment (EIA) done by the ministry and is only waiting to proceed pending negotiations with the Ministry of the Interior.
Project Scope
The pipeline project dubbed Tendrara Export Pipeline will cross the Matarka village in the province of Figuig in eastern Morocco and Jerada. It is expected to connect the proposed gas treatment plant and compression station (CPF) to the Gazoduc Maghreb Europe pipeline (GME). The Maghreb Europe pipeline runs from western Algeria, through Morocco, to southern Spain.
The project will be under Build-Own-Operate-Transfer terms. The company is also in talks with the Ministry of the Interior to obtain rights for the pipeline through a long-term lease agreement for a 50 [meter] wide corridor along the entire 120 km length.
Upon completion, the gas project is projected to meet 30% of the country’s oil demands. The national production of hydrocarbons in Morocco is expected to reach 96 million cubic meters of natural gas and 4,300 tons of condensate by the end of 2020. According to the Moroccan Minister of Energy, Minerals, and Environment, Aziz Rabbah, by the end of 2020, the investment in hydrocarbon exploration will be around the US $82.7m.
Morocco is a net natural gas importer, and its production is much less than domestic consumption. Morocco produced 3.1 billion cubic feet (Bcf) in 2018, and the country consumed 44 Bcf. A portion of the Maghreb-Europe Pipeline (also known as the Pedro Duran Farell pipeline), which transports natural gas between Algeria and Spain, passes through Morocco.
Morocco grants Sound Energy rights to Tendrara Gas Export Pipeline project
Reported in 2020
The Moroccan Ministry of Energy has granted British industrial company Sound Energy full rights to carry out its Tendrara Gas Export Pipeline project. This is after the ministry approved the project’s Environmental Impact Assessment (EIA), related to the establishment of a gas treatment plant and compression station (CPF).
The approvals were granted following meetings with the National Committee from the Moroccan Ministry of Energy, in October 2019 and January 2020, to review the CPF EIA.
Approval of a long term lease
The company expressed satisfaction with discussions between its personnel and Moroccan Ministry of Interior and Forestry Department representatives, which led to the approval of a “long-term lease agreement”. Under the agreement, the company will establish a 50m wide corridor along the entire 120km length of the pipeline project.
The British company wants to build and operate a 120km 20-inch gas pipeline to connect the upcoming gas treatment plant and compression station (CPF) with the Gazoduc Maghreb Europe pipeline (GME). The Maghreb Europe pipeline runs from western Algeria, through Morocco, to southern Spain.
Sound Energy is now working on a land access tariff agreement with the ministry and it believes that these developments are important milestones in the process of developing and commercialising the Concession and as the Company progresses towards the Final Investment Decision (when binding development capital commitments are to be made) for each phase of the Concession field development.
