A connection agreement to the Maghreb-Europe gas pipeline (GME) has just been initialed between Sound Energy, holder of the Tendrara gas concession, and Onhym. An agreement that symbolizes a new and very important step towards the effective entry into force of the gas sale and purchase contract signed by ONEE and Sound Energy in November 2021.
Un communicated of Sound Energy, underlines that under this agreement the National Office of Hydrocarbons and Mines (Onhym), owner and operator of the Maghreb-Europe gas pipeline, has authorized the connection of the Tendrara production concession to the GME, via a new gas pipeline which will be built over 120 km.
Onhym has "committed to setting up the connection infrastructure between the new gas pipeline and the GME, facilitating the delivery of gas from Tendrara to all customers connected to the GME," the press release stated.
Sound Energy notes that the conclusion of the pipeline connection agreement fulfils one of the main remaining conditions for the effective entry into force of the binding gas sale and purchase agreement signed by the National Office of Electricity and Drinking Water (ONEE) with the British firm on 30 November 2021.
It should be recalled that this agreement provides for the delivery by Sound Energy, which holds the Tendrara gas concession in eastern Morocco, to the Maghreb-Europe Gas Pipeline (GME) of an annual contractual volume of up to 350 million cubic metres of natural gas, over a period of ten years.
To this end, it consists of extracting natural gas by drilling several development wells to achieve the contractual daily flow rate, treating the natural gas produced by installing an on-site natural gas treatment unit, to which the producing wells will be connected, then transporting the treated gas via a new gas pipeline connecting to the GME.
Graham Lyon, Chairman of Sound Energy, said on the occasion that "the conclusion of the GME connection agreement marks further progress on the various conditions required to reach a final investment decision on the development of phase 2 of the Tendrara production concession."
Already on March 9, ONEE and the British firm Sound Energy had announced the extension of the deadline to satisfy the conditions of the binding agreement for the sale and purchase of gas from the Tendrara concession.
However, there are only two conditions left to be met for the binding gas sales and purchase agreement to come into force with the signing of the Maghreb-Europe Gas Pipeline (GME) connection agreement: obtaining all necessary authorisations and permits for the construction of the gas facilities, as well as final approval of the investment decision by the Ministry of Energy Transition and Sustainable Development and the Ministry of Economy and Finance.
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