London-listed Sound Energy broke ground on Thursday on its small-scale liquefied natural gas (LNG) facility in Morocco.
Sound Energy revealed this in a social media post. The firm said it started works at the site of the micro LNG facility in the Tendrara Concession but it did not provide any additional information.
This follows the notice to proceed the company’s unit issued last month to Italian contractor Italfluid for the construction of the LNG facility.
Prior to this, Sound Energy had completed its LNG supply deal with Morocco’s LPG distributor Afriquia Gaz.
Under this deal, Afriquia Gaz will buy not less than 171,000 cubic meters of LNG per year and the firm also provided an $18 million loan.
Sound Energy expects first gas in about two years.
The company is also working on the second phase of the project but this stage is related to pipeline gas.
Sound Energy recently entered into a pipeline tie-in agreement to the Gas Maghreb-Europe pipeline with Moroccan state-owned firm ONHYM.