Sound Energy PLC Phase 2 - Pipeline Interconnection Agreement (7226E)
March 14 2022 - 11:39AM
UK Regulatory
TIDMSOU
RNS Number : 7226E
Sound Energy PLC
14 March 2022
14 March 2022
Sound Energy plc
("Sound Energy", the "Company" and together with its
subsidiaries the "Group")
Phase 2 Tendrara Development - Pipeline Interconnection
Agreement
Sound Energy, the Moroccan focused upstream gas company,
announces the entry of a pipeline tie-in agreement to the Gas
Maghreb-Europe pipeline (the "GME Pipeline" or the "GME") with
ONHYM (Office National des Hydrocarbures et des Mines) in respect
of the Phase 2 development of the Tendrara Production Concession
(the "Pipeline Tie-in Agreement").
The GME Pipeline, which was transferred to Moroccan state-owned
entity ONHYM by the previous operator on 1 November 2021, is owned
and operated by ONHYM. Pursuant to the Pipeline Tie-in Agreement,
ONHYM has now approved the connection of the Tendrara Production
Concession via a gas export spur pipeline to the GME Pipeline.
Under the Pipeline Tie-in Agreement, following the provision of
certain technical information by Sound Energy to ONHYM in respect
to the Tendrara Production Concession export spur pipeline, and
subject to Sound Energy's approval thereafter of ONHYM's proposed
technical and financial terms for the construction of the tie-in
infrastructure, ONHYM (the acting operator of the GME Pipeline) has
committed to put in place the tie-in infrastructure between the
Tendrara export pipeline and the GME pipeline, facilitating
Tendrara gas to flow to all clients connected to the GME.
The entry of the Pipeline Tie-in Agreement fulfils one of the
key remaining conditions to Sound's binding gas sale and purchase
agreement (the "GSA") in respect of the Phase 2 development of the
Tendrara Production Concession with Morocco's state-owned power
Company ONEE (Office National de l'Electricit é et de l'Eau
Potable) for the sale of natural gas from the Tendrara Concession
in Eastern Morocco over a 10 year period, the terms of which were
announced by the Company on 30 November 2021.
Following the entry of the Pipeline Tie-in Agreement the GSA
remains conditional upon, inter alia: (i) all necessary
authorisations and permits having been granted for the construction
of the Phase 2 gas installations; and (ii) the final investment
decision, when taken, by the Tendrara JV partners, being approved
by the Moroccan Ministry of the Energy Transition and Sustainable
Development, and the Ministry of Economy and Finance.
Graham Lyon, Sound Energy's Executive Chairman, commented:
"The completion of the tie-in agreement to the GME pipeline
marks further progress on the various conditions required to reach
final investment decision on the Phase 2 development of the
Tendrara production concession. This development is a key element
of the roadmap released by the Energy Ministry in August 2021 to
supply future Moroccan energy. Sound Energy is addressing the
remaining conditions with the many local stakeholders and is
working with local and international funding partners to establish
project funding. We thank ONHYM for their support in closing out
this tie-in agreement."
For further information please contact:
Vigo Consulting - PR Adviser Tel: +44 (0)20 7390 0230
Patrick d'Ancona
Chris McMahon
Sound Energy chairman@soundenergyplc.com
Graham Lyon, Executive Chairman
Cenkos Securities - Nominated Adviser Tel: +44 (0)20 7397 8900
Ben Jeynes
Peter Lynch
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Richard Hail
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