Under an agreement sealed lately by the two sides, Sound Energy pledges to produce and sell to the “Partner”, for ten years, 100 million standard cubic meters of gas (approximately 4 billion standard cubic feet of gas per year).
In return, the Partner commits to an annual minimum “Take or Pay” quantity of 90 million standard cubic meters of gas, priced within a range of $7 to $9 per mmBTU.
In order to accelerate the delivery of first gas, the Partner has also agreed to provide partial financing for the development of the project.
In January, Sound Energy said it received approval to build and operate a 120-km gas pipeline in eastern Morocco. The pipeline will help channel gas from Tendrara to the already existing Gazoduc Maghreb Europe connecting Algeria to Europe via Morocco.
The British energy company had signed a gas supply deal with Morocco’s ONEE, state-owned power company.