Our Micro LNG project aims to bring much needed gas supply to Morocco, reducing the reliance on imported LPG, and playing an important role in the transition to lower carbon energy sources.
Gas is also planned to be sold to local power stations via pipeline links, and surplus gas may be sold into the GME displacing the reliance on coal.
Sound is focused on low-risk development projects, which will provide near-term energy supplies to the areas in which it operates, boosting local economies and providing a cash-generative platform for growth for the business and its investors. The exploration opportunities within our portfolio provide additional potential for value creation.
Sound is committed to operating to the highest environmental standards and minimising the environmental impact of its business. Sound’s ESG values are the core of its actions, and the Company is committed to respecting and protecting the environment, staff and stakeholders, and to adhering to the highest corporate and ethical standards.
Chairman’s report on strategy
Sound Energy has an important role to play in providing much needed energy and investment to the areas in which we operate.
We strive to grow via the development of our portfolio and via investments in complementary businesses. ESG is at the core of our Company and we are working hard to continue to improve our ESG standards.
Our assets
Our assets consist of an exploration portfolio across two locations and two gas developments within a single concession in Morocco, where gas is in high demand, including a phased development project in the Tendrara Production Concession area.
Dependency on Imports
Morocco heavily relies on imported sustainable energy gas. Natural gas imports from Spain via the GME pipeline surged 403%, from 5.8 Bcf in 2022 to 29 Bcf in 2023.
Morocco’s LPG market demand ranks globally at 116 bcf p.a. The government plans to reduce LPG subsidies in 2024, which exceeded $2 billion in 2022, to ease financial burden.
Growing Energy Needs
The country has seen a 5% yearly growth rate in electricity demand, indicating the escalating need for reliable and diverse energy sources.
Natural gas is considered a strategic bridge fuel to support this demand.
Significant Commitment To Sustainable Energy
Morocco’s National Energy Strategy aims to introduce 3,900 MW of new gas-fired power capacity to replace coal.
Concurrently, there’s a 10-year tax holiday in place to incentivise domestic exploration and development.
Future focus
Our key focus is the phased development of our assets via Micro LNG and pipeline gas projects.
Renewable energy opportunities
While we are cognisant that our business is primarily focused on Micro LNG and gas as a transition fuel, we are currently evaluating opportunities in the renewable space too. This includes the potential of running our operations on-site at Tendrara using energy from renewable sources.
1. Strategic Importance and Support
Gas is crucial for the evolving energy policy in Morocco, with a well-defined development plan optimised for the Moroccan market and strong government backing.
2. Competitive Edge and Operational Strength
Leveraging competitive advantage through access and operating momentum rooted in advanced existing projects.
3. Promising Development Pipeline
Imminent milestones include the Tendrara project’s first gas, first LNG delivery, and an asset-level funding partnership with Managem. Mid to long-term prospects involve the Tendrara CPF, pipeline, and extended infrastructure-driven exploration to tap more gas resources.
4. Financial Roadmap
Defined financial pathway backed by supportive key partners, effective debt management, and cost structures. Potential for significant revenue generation commencement within next 18 months and beyond.
5. A Key Player in the Moroccan Energy Transition
Sound Energy is positioned as a pivotal player in the energy transition in Morocco with a strong ESG focus, and opportunities to explore more energy prospects in Morocco and regionally.
6. Further Growth Opportunities
Actively seeking and capitalising on energy opportunities in Morocco and beyond, solidifying its position as an innovative and forward-thinking entity in the energy sector.
Delivering lasting benefits
Sound Energy Plc presents a compelling investment opportunity as a leading onshore gas company in Morocco, strategically positioned to fuel the energy transition