Doha – Morocco will enter the liquefied natural gas (LNG) market by the end of 2025, with UK-based Sound Energy finalizing the development of the country’s first LNG processing facility at the Tendrara field.
The project, representing an investment of more than $160 million by Sound Energy, brings together a consortium where Moroccan mining company Managem holds 55%, the UK firm maintains 20%, and the state-owned National Office of Hydrocarbons and Mines controls 25%.
“Initial production of about 300,000 cubic metres per day is expected to rise to more than 1 million cubic metres per day,” Sound Energy’s CEO Graham Lyon told Al Asharq Business.
The development encompasses two phases: first, the construction of processing, liquefaction, and storage facilities, followed by the establishment of a processing facility and a 120-kilometer pipeline linked to the Maghreb-Europe gas pipeline.
The Tendrara field, Morocco’s largest onshore gas field, covers more than 133.5 square kilometers with reserves estimated at over 10.67 billion cubic meters.
Currently, Morocco imports around one billion cubic meters of gas per day, primarily through a pipeline from Spain, while domestic production remains under 100 million cubic meters annually from small western fields.
The Direction of Energy and Minerals projects Morocco’s gas demand to surpass 3 billion cubic meters annually by 2040.
The country aims to triple its local production to 400 million cubic meters annually in the coming years, which would satisfy 40% of local energy consumption.
Under the new project, the LNG will be sold from Tendrara’s conversion unit to Africa Gas, a subsidiary of the Moroccan group Akwa, a major player in the country’s fuel distribution sector.
Sound Energy secured development rights until 2043, following a 2018 agreement.
The company later divested 55% of the concessions to Moroccan companies for $45 million, though Lyon clarified this represented “a reduction in participation, but not a definitive exit from the project.”
Read also: Nigeria-Morocco Gas Pipeline: Morocco to Launch Tenders in 2025
In parallel developments, British company Europa Oil & Gas recently announced potential oil reserves in the Agadir basin, 100 kilometers from Spanish territory and 200 kilometers from the Canary Island of La Graciosa.
The company, holding 75% of exploitation rights, estimates reserves at 1 billion tonnes, pending further quality assessment and infrastructure studies.
According to Spanish newspaper Okdiario, if confirmed, these reserves could make Morocco “the Saudi Arabia of North Africa,” with the potential value of the field reaching $586.4 billion, nearly five times Morocco’s GDP.
Morocco’s energy strategy extends beyond LNG and oil. The country is exploring “geological hydrogen” or “white hydrogen” potential, with Sound Energy pledging $25 million for exploration studies.
These initiatives form part of Morocco’s broader energy transition plan, which combines renewable energy expansion with increased domestic gas production.
