by Joe Hope
Sound Energy Plc said on Wednesday that it is making progress towards meeting outstanding terms for a 10-year contract with Afrikaia Gaz SA for liquefied natural gas from its Tendra project in Morocco.
The energy company said the date for which the terms of the Phase 1 liquefied natural gas sale agreement, or LNG GSA, have to be met, has been extended to December 17.
Sound Energy said that it has fulfilled all the conditions under its direct control and the remaining condition pertains to entering into a debt note agreement with Afriqia. Other unfulfilled conditions are likely to be waived, it said.
The company first said on 29 July that it had signed a contract with Afriqia for at least 100 million cubic meters of LNG a year. Afriquia is a subsidiary of the Moroccan conglomerate Akwa Group.
“We are confident that all conditions prior to the LNG GSA will be met soon and as a result can announce a ‘notice to proceed’ with Phase 1 development,” said Acting Chairman Graham Lyons.
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