Morocco and UK collaborate on gas production project

On Jun 30, 2023

A project to produce gas has been collaborated on by Morocco and the UK. British energy company Sound Energy put out the concept, and Attijariwafa Bank opted to support it.

The project will improve the gas infrastructure in the Tendrara region of Morocco, which will result in major economic expansion, the creation of jobs, and greater investment.

The money will go toward pipeline construction, well drilling, and well-operation to deliver the natural gas to the buyer, the National Office of Electricity and Drinking Water.

The investment received a quick return because the news caused Sound Energy’s stock price in London to increase by 6.2%.

The firm and the Moroccan bank began talking on June 23 of last year. With a two-year grace period, the investment will be paid back over a period of 12 years.

The largest natural gas discovery in the Kingdom, worth an estimated 377,000 billion cubic feet, was made in the Tendrara region.

With a 28,000 square kilometer holding, Sound Energy is in possession of the country’s largest hydrocarbon exploration territory.

Presently, 10% of Morocco’s yearly gas consumption is fulfilled by the country’s 100 million cubic meter production. Through global marketplaces, the remaining demand is satisfied.

Prior to the expiration of the contract with Algeria, Morocco used the Maghreb-Europe Gas Pipeline to import gas from Algeria. However, Morocco switched to using the pipeline to receive liquefied natural gas from the European market via Spain.

Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development, claimed in an interview that new finds will result in a 300 million cubic meter boost in the nation’s natural gas output.

Thanks to the growth of the Tendrara and Larache districts, the Moroccan government expects to achieve 400 million cubic meters in the upcoming years, which would satisfy 40% of the nation’s energy needs.

Morocco is dedicated to boosting production and setting up the required infrastructure for gas supply from abroad in order to guarantee a stable local electrical system and satisfy the needs of energy-intensive sectors.

This plan will assist in balancing variations in the output of electricity from renewable sources.