Morocco and the UK have joined forces for a gas production project. Sound Energy, a British energy company, proposed the project, and Attijariwafa Bank decided to support it.
The project will enhance gas infrastructure in Morocco’s Tendrara region, leading to significant economic growth, job creation, and increased investment.
The funds will be used for drilling, operating wells, and constructing a pipeline to transport the natural gas to the buyer, the National Office of Electricity and Drinking Water.
The investment had an immediate impact, as Sound Energy’s stocks in London rose by 6.2% in response to the news.
Discussions between the company and the Moroccan bank started on June 23 last year. The investment will be repaid over 12 years with a two-year grace period.
The Tendrara region boasts the Kingdom’s largest natural gas discovery, estimated at approximately 377,000 billion cubic feet.
Sound Energy holds the largest area for hydrocarbon exploration in Morocco, covering 28,000 square kilometers.
Currently, Morocco produces 100 million cubic meters of natural gas annually, covering 10% of its total consumption. The remaining demand is met through international markets.
Previously, Morocco imported gas from Algeria through the Maghreb-Europe Gas Pipeline, but after the contract with Algeria expired, Morocco reversed the pipeline’s utilization to obtain liquefied natural gas from the European market through Spain.
Morocco’s Minister of Energy Transition and Sustainable Development, Leila Benali, stated in an interview that ongoing discoveries will increase the country’s natural gas production by 300 million cubic meters.
The Moroccan government envisions reaching 400 million cubic meters in the coming years, which would meet 40% of the country’s energy needs, thanks to the development of the Tendrara and Larache regions.
To ensure a stable local electricity system and meet the demands of energy-intensive industries, Morocco is committed to increasing production and establishing the necessary infrastructure for gas supply from abroad.
This strategy will help balance fluctuations in energy production from renewable sources.
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