(Alliance News) - Sound Energy PLC on Monday said it received environmental impact assessment approval from Moroccan lawmakers to build a 120-kilometre gas pipeline and added that it is edging closer to securing permission to construct a gas treatment plant in the country.
The pipeline would link the gas company's proposed gas treatment plant & compression station to the Gazoduc Maghreb Europe pipeline, an existing natural gas duct which runs through Morocco. It connects the Hassi R'Mel gas field in Algeria, to Cordoba in southern Spain and is operated by state-owned Algerian firm Sonatrach Spa and Spanish firm Enagas SA.
The environmental impact assessment process for Sound Energy's proposed gas treatment plant & compression station is "progressing well", the company added. The company had an initial meeting with the Moroccan Ministry of Energy, Mines & Environment in October, with a second meeting to consider and potentially approve the impact assessment, scheduled for January 28.
Turning to Sound Energy's Tendara natural gas concession in eastern Morocco, the deadline for gas sales agreement negotiations with Morocco's state-owned power company has been extended until the end of March.
Back in October, the Sound Energy entered into a memorandum of understanding with Morocco's Office National de l'Electricite et de l'Eau Potable to negotiate a gas sales agreement, eyeing securing a deal by the end of 2019.
The proposed gas sales agreement would cover future production from the Tendrara concession in the east of the north African country.
"The company believes that the developments are important milestones in the process of developing and commercialising the Tendara Concession and as the company progresses towards the final investment decision for the concession," Sound Energy said on Monday.
Shares in the company, based in Sevenoaks, Kent, were 0.7% higher at 1.90 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Sound Energy (SOU)