Sound Energy, the Moroccan focused upstream gas company, said Moroccan authorities have given an approval for a gas treatment and compression complex, including liquefaction facilities.
The Environmental Impact Assessment (EIA) approval from Moroccan Ministry of Energy, Mines and Environmental is connected to the Tendrara gas export pipeline plans.
Last month, Sound Energy announced plans plan to pursue the first phase of TE-5 Horst development at the Tendrara production concession via a micro liquified natural gas (LNG) production plan.
The company said that negotiations are ongoing with equipment providers for the LNG production facility solution and with industrial customers and distributors in relation to a gas offtake agreement.
This follows an earlier approval for the 120 km Tendrara gas export pipeline approval, which connects the compression station to the Gazoduc Maghreb Europe pipeline. The additional liquefaction facilities will enable the LNG development planned as part of the phase 1 of the concession field development plan, with the pipeline-led full field development of the concession following as phase 2, Sound Energy said.
The company has also obtained rights in the form of a long-term lease agreement for a 50m wide corridor along the entire 120 km length of the Tendrara pipeline. Formal land access approvals have been received from the Ministry of Interior and the Forestry Department and the company will now look to finalise the tariff for the land access with the Ministry.
Additional land rights will be pursued following the final investment decision, Sound Energy said.
Separately, the company said gas sales agreement negotiations are continuing with Morocco's Office National de l'Electricité et de l'Eau Potable, the state power company of Morocco.