{"id":10644,"date":"2021-07-29T09:09:59","date_gmt":"2021-07-29T09:09:59","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=10644"},"modified":"2021-07-29T09:09:59","modified_gmt":"2021-07-29T09:09:59","slug":"sound-energy-enters-lng-spa-with-afriquia-gaz","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/sound-energy-enters-lng-spa-with-afriquia-gaz\/","title":{"rendered":"Sound Energy Enters LNG SPA with Afriquia Gaz"},"content":{"rendered":"<p class=\"dm\"><span class=\"dc\">Sound Energy has provided the following update in relation to the Company&#8217;s micro liquified natural gas (mLNG) phase 1 development plan for the TE-5 Horst development\u00a0 at the Tendrara Production Concession.<\/span><span class=\"dc\">\u00a0<\/span><\/p>\n<p class=\"dn\"><strong><span class=\"dc\">Highlights<\/span><\/strong><span class=\"dc\">\u00a0<\/span><\/p>\n<p class=\"do\"><span class=\"cy\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cx\">Ten (10) year take or pay LNG sale and purchase agreement entered into with Afriquia Gaz<\/span><\/p>\n<p class=\"dp\"><span class=\"cy\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cx\">\u00a32 million equity placing with Afriquia Gaz cementing the strategic alignment with Sound Energy PLC<\/span><\/p>\n<p class=\"dq\"><span class=\"cy\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cx\">Improved envisaged Afriquia Gaz loan note financing terms<\/span><span class=\"dc\">\u00a0<\/span><\/p>\n<p class=\"dn\"><span class=\"dc\">Graham Lyon, Sound Energy&#8217;s Executive Chairman, commented:<\/span><span class=\"dc\">\u00a0<\/span><\/p>\n<p class=\"dr\"><span class=\"dc\">&#8220;We are delighted to announce the signature of a binding ten year LNG sales agreement for the Phase 1 development covering the sale of not less than 100 million cubic metres of gas in a liquified form per year.\u00a0 In addition, the execution of the previously announced equity subscription agreement and the \u00a32 million equity placing cements the strategic alignment\u00a0 between Sound Energy and Afriquia Gaz. This is a key milestone in moving forward towards the final investment decision and notice to proceed for the Tendrara Phase 1 Development.<\/span><\/p>\n<p class=\"dr\"><span class=\"dc\">\u00a0<\/span><span class=\"dc\">In recognition of the alignment between Sound Energy and Afriquia Gaz, I am also pleased that we announce today that the parties are working towards improved terms in relation to the Afriquia Gaz loan note upon which the LNG sale and purchase agreement is, inter alia, conditional. We plan to conclude this loan note ahead of finalising the contract to construct the plant.<\/span><\/p>\n<p class=\"dr\"><span class=\"dc\">By establishing clear paths both to market for our gas and to our financing of Phase 1 Development, today&#8217;s announcement together with the recently announced Schlumberger Silk Route Service acquisition not only mark critical milestones for the Company but underscore our commitment to Sound Energy Shareholders to deliver upon our objectives and to create value through innovative commercial arrangements.&#8221;<\/span><span class=\"dc\">\u00a0<\/span><\/p>\n<p class=\"dn\"><strong><span class=\"dc\">Execution of LNG Sale and Purchase Agreement<\/span><span class=\"cu\">\u00a0<\/span><\/strong><\/p>\n<p class=\"dm\"><span class=\"cu\">Sound Energy Morocco East Limited has entered into a binding and fully termed conditional LNG sale and purchase agreement with Afriquia Gaz S.A. (Afriquia), pursuant to which SEMEL will sell not less than 171,000 cubic metres of LNG per year (approximately 100 million cubic metres a year of gas to be produced and liquefied from the Phase 1 Development) on behalf of the Concession joint venture (the LNG SPA).<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"dm\"><span class=\"cu\">Under the LNG SPA, SEMEL will commit, for 360 days of each year over a period of 10 years from first gas, to provide to Afriquia a daily quantity of between 475 and 546 cubic metres of LNG, and Afriquia will commit to an annual minimum &#8220;Take or Pay&#8221; quantity of 475 cubic metres per day of LNG.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"dm\"><span class=\"cu\">Pricing under the LNG SPA will be within a range, the floor price being US $6 per mmBTU and the ceiling price commencing at $8 per mmBTU and increasing during the course of the LNG SPA to $8.346 per mmBTU and will be determined using an indexed formula which applies a combination of the European Title Transfer Facility and United States Henry Hub benchmark indices. The point of sale to Afriquia will be at the Tendrara (TE-5) field location following processing and liquefaction, with Afriquia having responsibility for transportation and delivery to its downstream customers.<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"dm\"><span class=\"cu\">The LNG SPA is conditional upon fulfilment of certain conditions precedent including:<\/span><span class=\"cu\">\u00a0<\/span><\/p>\n<p class=\"ds\"><span class=\"ct\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cs\">The approval of the LNG SPA by the Concession joint venture;<\/span><\/p>\n<p class=\"dt\"><span class=\"ct\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cs\">The execution of a loan note agreement between the Company (as borrower) and Afriquia (as lender) setting out the terms of an US$ 18 million secured loan with a 6% annual coupon and a 12 year term;<\/span><\/p>\n<p class=\"dt\"><span class=\"ct\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cs\">The execution of a project contract with\u00a0<\/span><span class=\"cq\">Italfluid Geoenergy S.r.l (<\/span><span class=\"cq\">Italfluid) for the provision of a gas processing and liquefaction facility relating to the Phase 1 Development;<\/span><\/p>\n<p class=\"dt\"><span class=\"ct\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cs\">Receipt by Afriquia of regulatory approvals for the transportation of LNG by tankers and the sale of LNG; and<\/span><\/p>\n<p class=\"dt\"><span class=\"ct\">\u00b7\u00a0\u00a0\u00a0\u00a0<\/span><span class=\"cs\">Afriquia having secured in principle agreement from downstream buyers to purchase not less than 60% of the Annual Take or Pay Quantity under the LNG SPA\u00a0<\/span><span class=\"cu\">such conditions to be satisfied\u00a0<\/span><span class=\"cs\">by\u00a0<\/span><span class=\"cu\">29 October 2021.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sound Energy has provided the following update in relation to the Company&#8217;s micro liquified natural gas (mLNG) phase 1 development plan for the TE-5 Horst development\u00a0 at the Tendrara Production &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/sound-energy-enters-lng-spa-with-afriquia-gaz\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7446,11],"tags":[9479,9480,1629,7689,9481,7758],"class_list":["post-10644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-north-africa","category-top-news","tag-afriquia-gaz","tag-micro-liquified-natural-gas","tag-morocco","tag-sound-energy","tag-te-5-horst-development","tag-tendrara-production-concession","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1280%2C720&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2LG","jetpack-related-posts":[{"id":15407,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-first-commissioning-gas-at-the-tendrara-gas-development\/","url_meta":{"origin":10644,"position":0},"title":"MOROCCO: Sound Energy Announces First Commissioning Gas at the Tendrara Gas Development","author":"","date":"December 8, 2025","format":false,"excerpt":"Sound Energy has announced that it has received notification from the operator of the Tendrara Production Concession, Mana Energy Ltd (55%), of the commencement of the initial commissioning activities for the TE-5 Horst development project in the Tendrara Production Concession\u00a0that first gas has entered the gas gathering system (GGS) in\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":11854,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-issues-of-notice-to-proceed-for-tendrara-concession-phase-1-development\/","url_meta":{"origin":10644,"position":1},"title":"MOROCCO: Sound Energy  Issues of Notice to Proceed for Tendrara Concession Phase 1 Development","author":"","date":"February 17, 2022","format":false,"excerpt":"\u00a0 Sound Energy has announced the issue to Italfluid Geoenergy S.r.l. of notice to proceed in respect of the project contract for the Tendrara Concession mLNG Facilities Onshore, Kingdom of Morocco, between the Group and the Contractor.\u00a0 The Notice to Proceed has been issued to the Contractor by Sound Energy's\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10823,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-acquires-schlumberger-silk-route-services-ssrs-equity\/","url_meta":{"origin":10644,"position":2},"title":"MOROCCO: Sound Energy Acquires Schlumberger Silk Route Services (SSRS) Equity","author":"","date":"August 31, 2021","format":false,"excerpt":"Sound Energy has announced the completion of the Company's acquisition from Schlumberger\u00a0Holdings II Limited of the entire issued share capital of Schlumberger Silk Route Services (SSRS). SSRS holds a 27.5% participating interest in the Anoual and Greater Tendrara exploration permits\u00a0in Eastern Morocco, together with a 27.5% indirect interest in the\u00a0Tendrara\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":11477,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-announces-phase-1-development-loan-note-financing-and-lng-sale-purchase-agreement\/","url_meta":{"origin":10644,"position":3},"title":"MOROCCO: Sound Energy Announces Phase 1 Development Loan Note Financing and LNG Sale &#038; Purchase Agreement","author":"","date":"January 1, 2022","format":false,"excerpt":"Sound Energy, the energy transition company, is delighted to announce the entry of binding conditional agreements in respect of a US$18 million Phase 1 Tendrara LNG Development loan note financing and that, with the other remaining conditions precedent to the Phase 1 LNG gas sales agreement announced by the Company\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":12883,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-reports-micro-lng-development-progress-amendment-of-italfluid-project-contract\/","url_meta":{"origin":10644,"position":4},"title":"MOROCCO: Sound Energy Reports on Micro LNG Development Progress &#038; Amendment of Italfluid Project Contract","author":"","date":"November 29, 2022","format":false,"excerpt":"Sound Energy has provided a progress update on its Phase 1 micro LNG development and announced an amendment to the project contract entered into between Italfluid Geoenergy S.r.l. \u00a0and Sound Energy and\u00a0together with the Contractor in respect of the design, procurement, construction, operation and maintenance of Tendrara Concession micro LNG\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/Morocco-Tendrara.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":10436,"url":"https:\/\/www.oilnewskenya.com\/index.php\/morocco-sound-energy-increases-participating-interests-in-the-anoual-greater-tendrara-exploration-permits\/","url_meta":{"origin":10644,"position":5},"title":"MOROCCO: Sound Energy Increases Participating Interests in the Anoual &#038; Greater Tendrara Exploration Permits","author":"","date":"June 14, 2021","format":false,"excerpt":"Sound Energy has entered into a sale and purchase agreement with Schlumberger Holdings II Limited to acquire the entire issued share capital of Schlumberger Silk Route Services Limited. Acquisition Highlights: The Group will have increased participating interests in the Anoual and Greater Tendrara exploration permits in Eastern Morocco by 27.5%\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=10644"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10644\/revisions"}],"predecessor-version":[{"id":10646,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10644\/revisions\/10646"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/8449"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=10644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=10644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=10644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}