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Domestic demand in Morocco sets stage for micro LNG

Appealing fiscal terms and a desire to tackle emissions has made Morocco an attractive destination for investment. The country is under explored and typically under the radar for most investors. Sound Energy, though, has found gas and is working to tie this up to the latent domestic demand.

“There’s strong commercial demand in country for natural gas,” Sound’s COO Mohammed Seghiri said. The local market relies on higher polluting fuels such as petroleum coke. “The state has a clear long-term policy to move away from those resources. Switching to gas is much less polluting,” Seghiri continued. If that gas is domestically produced, all the better for the country.

Gas, alongside investment in renewables, is the “only way” for Morocco to reduce a large part of its power that comes from coal. “The first step is to get rid of coal in new power generation units.” Sound has discovered 650 billion cubic feet (18.4 billion cubic metres) of gas at TE-5 Horst, in eastern Morocco. Initially, the company had planned to focus on a 120-km pipeline link to the transnational Gazoduc Maghreb Europe (GME) pipeline .

Subsequently, though, it has expanded into a micro LNG (mLNG) plan, which would involve gas being trucked to consumers, such as factories.

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Source: EnergyVoice

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