Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
In any case, in addition to renewable energies, which will, in principle, have to increase to 52% of Morocco's energy mix by 2030, the kingdom has also decided through its 2021-2050 gas plan to strengthen the use of natural gas in its electricity production, replacing the highly polluting coal and oil, which all countries are seeking to divest, in line with commitments under the Paris Agreement. However, all in all, Morocco is still far from the billion m³ used annually under the GME agreement. It is also barely half necessary for the operation of the two gas-fired power plants in the Kingdom, namely Ain Beni Mathar and Tahaddart, which contributed 17% to national electricity production. Two power plants whose annual consumption was around 640 million m³ per year. But for the Kingdom, it is a first step towards gas autonomy. The country is on track for further gas discoveries. "We're sitting on reservoirs with geology similar [to Algeria], having done a fraction of the exploration that Algerians have done," said Graham Lyon, CEO of Sound Energy.
As a Maghreb specialist asserts, if Algeria has decided not to renew the contract for the GME gas pipeline passing through Morocco and supplying Spain with gas, there is also this desire of the eastern neighbor not to strengthen the competitiveness of Moroccan industry.
The gas will be produced, processed and delivered to the Office's thermal power plants, Tahaddart and Aïn Béni Mathar, according to the contractual requirements agreed with ONEE via the Moroccan part of the Maghreb Europe Gas Pipeline, which should allow the restart of this pipeline crossing Morocco and which delivered Algerian gas to the Iberian Peninsula. Financial details of the deal have not been disclosed, but according to a source close to Sound Energy, ONEE will pay a total of $84 million to the British firm per year, as part of the deal.
It should be noted that the execution of the said sales agreement is subject to a series of conditions that must be met within 90 days of its signature. It will be necessary not only that all the authorizations and permits necessary for the construction of the Phase 2 gas facilities have been obtained, but also that the final investment decision, once taken by the partners, is approved by the Moroccan authorities. In addition, the partners concluded an interconnection agreement with the operator of the GME Gas Pipeline, as well as the start of work to connect the Tendrara production concession to the Pipeline.
Recall that this LNG sales agreement is in addition to the LNG sale agreement concluded in July with Afriquia Gaz and part of Phase 1 of the development of Tendrara. It was in June 2020 that the British firm announced that it had started negotiations with the Moroccan group to sell it 100% of its future LNG production which will come from the TE-5 Horst deposit of the Tendrara concession. At the time, in the details that were being discussed, Sound was to produce LNG for the equivalent of 100 million standard cubic meters of gas per year, for 10 years. The Moroccan partner will commit to pay a minimum annual quantity of 90 million cubic meters of gas, at a price between $7 and $9 per million British Thermal Units (MmBtu).
Afriquia Gaz will provide partial financing through a $2.5 million subscription for 159.7 million Sound shares and a $13.5 million secured commercial loan, with an 11.5% coupon, over a 12-year term. With this gas, the subsidiary of Akwa Group, which holds a small stake in the capital of the Moroccan subsidiary of the British firm, will be able to satisfy the needs of the Moroccan industrial fabric. And this is good for local manufacturers who will not only be able to benefit from a product (methane) with a calorific value per kilogram much higher than that of propane or butane, but also and above all increase their competitiveness with a product whose carbon footprint is the lowest. A boon for Moroccan industrialists, especially those who export.
Because, in less than 13 months, the European Union will only accept carbon-free products on its market. Morocco, 65% of whose exports are destined for the European market, like the EU's other partners, anticipates this carbon border adjustment mechanism that will regulate its trade from the beginning of 2023. As a Maghreb specia
Tend to agree! No need for the following of our esteemed Chairman at Chuckle Gas Plc:
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Commenting on the current debacle between Jez (the current Chairman of Chuckle Gas Plc) and Des (RE: Idiots Day Out), the Press Office of Chuckle Gas plc had this to say:
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Further to JP leaving SOU.l we further understand that JP is to team up with the 'Pogues' and produce a No. 1 Single!
On the matter of the appointment of the new Chairman to SOU.L. - ..... Major Cuthbert Gwendolen Poppinjay, (who works the photocopier at 'Chuckle Bro's') had this to say on the new appointment; " he's a capable kipper' !
Message Ends.
If this is really happening and will become a reality then maybe have to pursue a 'confiscation order' and get the DS to sell to Shell or Total. I can't believe what is beginning to unravel infront of my own eyes. I'm getting worried!
R Du R - There is not and i repeat not a comment that you have made that i can or could disagree with !!! You allude quite 'CORRECTLY' to the 'REAL' JP trading Plan. Simply put, he has put his interests ahead of those of Shareholders.
When this individual is eventually interviewed under 'caution', i for one, will not be the one there to defend him!!!
I am furious at the moment!!!!