Sound Pens Deal on Building Moroccan LNG Plant
Morocco-focused Sound Energy has signed a deal on selecting an engineering firm to build a micro LNG plant in Morocco, it said on December 23.
The company agreed a letter of exclusivity with Italfluid Geoenergy on negotiating a five-year contract for the latter to design, construct, commission, operate and maintain the LNG plant, which will receive gas from the Tendrara concession in eastern Morocco. The exclusivity period runs until March 31 2021.
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Sound will pay Italfluid an initial $5mn within 30 days of taking a decision on Tendrara's development and a further $2mn within 30 days of the LNG plant coming on stream. Italfluid will receive $36,000 each day the plant delivers a guaranteed volume during the contract period.
Sound added it had extended the deadline for exclusive talks to conclude with a Moroccan conglomerate on future sales from the LNG plant from December 31 2020 until March 31 2021, by which point Sound hopes to take a final investment decision on development.