UK-based Sound Energy PLC plans to fast-track development of its TE-5 Horst field through a micro LNG plant, targeting first LNG delivery during 2021. LNG will be transported to industrial customer sites in Morocco. The company’s larger full, pipeline-led field development plan will be added to this initial plan, given its inherently longer timescales.
Sound is in discussions with industrial customers and distributors in Morocco regarding long-term LNG offtake from the concession and negotiations with equipment providers and potential funding partners for the micro LNG liquefaction plant. Subject to Sound’s joint venture partners in the concession agreeing to the micro LNG production plan, the company expects to take a second-quarter 2020 final investment decision.
Sound announced Nov. 6, 2019, that it had entered into a nonbinding heads of terms agreement (HOT) with a privately-owned UK registered company specializing in energy asset development and investment in relation to a proposed sale of 51% of its 47.5% interest in the Eastern Morocco Portfolio.
Under the terms of the HOT, Sound granted to the purchaser an exclusivity period expiring Feb. 14 to complete due diligence on the portfolio and finalize a binding sale and purchase agreement. Sound remains unsatisfied with the purchaser’s proof of funds and will now entertain other possible offers while continuing to discuss the transaction with the purchaser.
Sound has continued to pursue the field development plan underpinning the Tendrara Production Concession award, centered around the 120-km, 20-in. OD Tendrara Gas Export pipeline which will connect the concession to the Gazoduc Maghreb Europe pipeline. Sound now plans to prioritize early first cash flows from the concession and consequently to pursue a micro LNG liquefaction plant for TE-5 Horst field ahead of the full field development plan.
The Moroccan Ministry of Energy awarded Sound an 8-year, 14,500-sq km production concession for the Tendrara natural gas discovery in 2018. Drilling plans called for as many as five horizontal development wells in addition to recompletion of the existing TE-6 and TE-7 wells.
Resources certification by RPS Energy Consultants Ltd. completed January 2018 confirmed mid-case GOIP of 0.65 tcf for TE-5 Horst alone. The concession represents a continuity of the Algerian Triassic province and Saharan Hercynian platform.