Morocco on Track to Become a Gas Producer by 2025
Morocco is poised to become a notable player in the natural gas market,with plans to produce liquefied natural gas (LNG) by the end of 2025. This ambitious goal was announced by Graham Lyon, CEO of British energy company Sound Energy, during an interview with Saudi Arabian news channel Asharq.
Sound energy is nearing completion of an LNG liquefaction plant at its Tendrara concession in eastern Morocco. Initial production tests are expected to begin next summer,with an output of approximately 10 million cubic feet per day (283,168.4659 m³). this volume is projected to increase to 40 million cubic feet (1,132,673.8637 m³) by the end of autumn 2025, according to Lyon.
Currently, Morocco produces less than 100 million cubic meters of natural gas annually from small deposits in the western part of the country. However, these reserves are dwindling, forcing the nation to import the majority of its gas needs, estimated at around one billion cubic meters per year, via a pipeline connecting it to Spain. This reliance on imports makes the country vulnerable to price fluctuations and supply disruptions.
The advent of domestic LNG production will substantially enhance Morocco’s energy security and reduce its dependence on foreign sources. Lyon also revealed that Sound Energy and Managem, a Moroccan mining and energy group, are collaborating on a $400 million, 120-kilometer pipeline project to connect their production to the Maghreb-Europe gas pipeline.
Sound Energy has also signed an agreement to increase natural gas production in eastern Morocco in the coming years, with plans to invest $25 million in new drilling operations.
Adding to the momentum, Managem announced on June 14, 2024, that it had acquired Sound Energy Morocco East Ltd., gaining control of 55% of the Tendrara operating concession, 47.5% of the Grand Tendrara exploration permit, and 47.5% of the Anoual exploration permit. This acquisition strengthens managem’s position in the Moroccan energy sector and underscores the country’s commitment to diversifying its energy sources.
Morocco’s Energy Conversion: An Interview with a Sector Expert
Time.news Editor: The recent announcement from Sound Energy CEO Graham Lyon is generating a lot of buzz – Morocco poised to become a gas producer by 2025. This is a significant shift. Can you tell us more about what this means for Morocco’s energy landscape and the broader regional context?
Expert: Absolutely. Morocco’s current reliance on imported natural gas, primarily from Spain, makes it susceptible to price volatility and supply chain disruptions. The potential for domestic production marks a major step towards bolstering the country’s energy security.Sound Energy’s LNG liquefaction plant at the Tendrara concession, once operational, is projected to produce an notable 40 million cubic feet per day by late 2025. This will considerably reduce Morocco’s dependence on imports and offer greater stability to its energy supply.
Time.news Editor: How will this domestic production impact Morocco’s energy imports and affordability?
Expert: This is where the real benefits come into play. With increased domestic production, Morocco can significantly reduce its purchases of imported natural gas. This will translate to lower energy costs for both consumers and industry,ultimately contributing to economic growth and competitiveness.
Time.news Editor: The project you mentioned also involves a pipeline connection to the Maghreb-Europe gas pipeline. What are the implications of this integration?
Expert: This is a crucial development. Connecting Sound Energy’s production to the existing Maghreb-Europe pipeline opens up significant export opportunities for Morocco. Morocco can now possibly become a net exporter of gas, contributing to regional energy security by diversifying supply sources.
Time.news Editor: Managem’s recent acquisition of Sound Energy Morocco East Ltd. is another interesting piece of the puzzle.
Expert: Indeed.Managem’s acquisition strengthens their position in the Moroccan energy sector and demonstrates a clear commitment to domestic energy diversification. This signals a robust future for the project and underscores the Moroccan government’s support for this aspiring energy strategy.
Time.news Editor: What advice would you give to companies and individuals interested in becoming part of this energy transformation in Morocco?
expert: Morocco’s strategic focus on energy independence presents significant opportunities. Companies involved in renewable energy, LNG infrastructure development, and related technology sectors can benefit from this growing market. For individuals,staying informed about these developments and seeking opportunities in the burgeoning energy sector in Morocco could be highly rewarding.