Sound Energy has announced the start of initial commissioning activities at the TE-5 Horst development project in the Tendrara production concession in eastern Morocco. 

The Tendrara production concession is an onshore gas field jointly owned by Mana Energy (55%), which is also the operator, alongside Sound Energy (20%) and ONHYM (25%). 

The first gas has entered the gas gathering system (GGS) in preparation for long-term supply into the micro-liquefied natural gas (LNG) plant. 

The supervisory control and data acquisition (SCADA) computer, the last component required for the gas gathering system, arrived on 28 November. 

After it was installed, gas flowed from the TE-6 production well into the GGS. 

Italian oil and gas services company Italfluid Geoenergy (ITF) is responsible for designing, constructing, operating and maintaining the micro-LNG plant. 

The Tendrara facility will deliver LNG to Afriquia Gaz. 

A binding gas sales agreement and related funding are in place with Afriquia Gaz. 

Under a ten-year commitment, Afriquia Gaz will purchase 100 million normal cubic metres of gas annually, starting from the first gas, at a price of $6–8.346 per million British thermal units. 

The price will be determined based on an indexed formula that applies a mix of the European TTF (Title Transfer Facility) and US Henry Hub benchmarks. 

The construction of the micro-LNG plant is under way, and the development will leverage the existing TE-6 and TE-7 wells, along with one new well to supply the raw gas volumes into the plant for Phase 1 development and to maintain the contracted production plateau over the ten years. 

ITF projects that revenue from LNG sales will begin late the first quarter (Q1) or Q2 of 2026. 

Sound Energy CEO Majid Shafiq said: “We are pleased that we have reached another milestone to bring gas to Moroccan industrial consumers and congratulate the operator, Mana Energy. 

“I look forward to full commissioning of the micro-LNG facility and delivery of sales gas in the coming months. 

“We are entering an exciting period at Sound Energy as we become a revenue-generating company, whilst progressing to the FID [final investment decision] for the second phase of development of the entire field, to supply Moroccan power markets.” 

Last year, in December, Sound Energy confirmed the completion of the transaction for the partial divestment of its Moroccan assets through the sale of its entire issued share capital in Sound Energy Morocco East to Managem, for a total value of up to $45.2m (£35.65m).