Rabat – Morocco is poised to join the liquified natural gas (LNG) production market for the first time in its history by the end of this year.
The British company Sound Energy said it is nearing completion of a gas liquefaction facility at the Tendrara field in eastern Morocco.
Sound Energy CEO Graham Lyon said that production trials are set to kick off next summer, with commercial production starting at a daily 10 million cubic feet by late autumn.
Production capacity is expected to eventually increase to 40 million cubic feet a day as additional fields are developed.
Still under development, Tendrara is one of Morocco’s largest onshore gas fields, holding an estimated 10.67 billion cubic meters of natural gas.
The project aims to reduce Morocco’s reliance on gas imports, which currently supplies most of the country’s needs to produce electricity, phosphate drying, and ceramic and iron production and accounts for one billion cubic feet.
The liquified gas will be sold to Morocco’s largest fuel distribution company, Africa Gas, which is part of Morocco’s Akwa Group – a conglomerate that invests in energy, real estate, tourism, and retail.
Sound Energy recently sold a 55% stake of the concession to Moroccan mining company Managem for $45 million, while retaining a 20% share. The state-owned National Office of Hydrocarbons and Mines holds the remaining 25%.
Along with developing the gas field, Sound Energy and Morocco’s Managem are working on building a $400 million, 120-kilometer pipeline to connect with the Maghreb Europe pipeline. The latter pipeline is now partially being used to receive supplies via Spain after the Algerian government decided to terminate it.
The project represents a significant step toward enhancing Morocco’s energy independence and domestic gas production capabilities.
