Predator eyes Moroccan FLNG project
London-listed Predator Oil & Gas intends to file a bid to build and operate a floating LNG import terminal in Morocco, the company said in an update on May 24.
Morocco's energy ministry has invited companies to submit expressions of interest for the project by May 31. The floating storage and regasification unit (FSRU) would initially import 1.1bn m3 of gas, rising to 1.7bn m3 in 2030 and 3bn m3 in 2040.
Morocco consumes only a little over 1bn m3/yr of gas, relying on piped supplies from Algeria to supplement domestic output. But it wants gas to play a greater role in its energy mix in order to phase out coal-fired generation.
Predator already has upstream operations in the north African state and is hoping to develop an LNG import terminal in Ireland. The Moroccan FSRU would be "a much longer term project that does not compete with the company's short- and medium-term plans to explore for, appraise and develop gas in its Guercif licence onshore northern Morocco," the company said.
Instead, "it is potentially a complementary addition to the company's business strategy for Morocco to increase both materiality and the potential for future gas exports to Europe once the domestic Moroccan gas market reaches capacity," Predator said. The Guercif licence is adjacent to the Maghreb gas pipeline that runs through Morocco carrying Algerian gas to Europe.
Predator operates the Guercif permit with a 75% interest while state-owned partner ONHYM has 25%. It assesses the area's prospective resources at 13.4bn m3 of gas with considerable upside potential.
Having undertaken permitting and surveying work, the company said in its update that it had awarded a contract for the construction of the well pad for its first exploration well at Guercif, as well the improvement and extension of access roads to the site, to local company Skayavers Sarl. Drilling operations are scheduled to start in June.