(Alliance News) - Sound Energy PLC on Friday said it has obtained a further environmental impact assessment approval plus land corridor rights for its Tendrara gas export pipeline in Morocco.
Shares in Sound Energy were up 15% at 1.06 pence in London in morning trading.
The upstream gas company is currently in talks with equipment providers for the planned liquefied natural gas production facility at Tendrara and is also in talks with industrial customers and distributors over a gas offtake agreement.
The Moroccan Ministry of Energy, Mines & Environment approved the environmental impact assessment relating to construction of gas treatment plant and compression station at the Tendrara production concession, including the option for gas liquefaction.
This follows previous approval for the 120 kilometre Tendrara gas export pipeline connecting the compression station to the Gazoduc Maghreb Europe pipeline.
The land corridor rights apply to a 50 metre wide corridor the entire length of the 120 kilometre pipeline, with formal land access approvals received from the Ministry of Interior and the Forestry Department.
It is still in talks for a gas sales agreement but does not expect to each one before the end of March. For this reason, the memorandum of understanding between the company and Morocco's state power company, the Office National de l'Electricite et de l'Eau Potable, will likely be further extended.
An investor event scheduled for the end of March and start of April has been postponed due to the Covid-19 pandemic and Sound Energy said it "has implemented continuity plans enabling all personnel at the company's offices in Sevenoaks and Rabat to work remotely."
By Anna Farley; annafarley@alliancenews.com
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Sound Energy (SOU)