Sound Energy Secures $2.2 Million as Tendrara Gas Project Nears Production

Agadir – Sound Energy PLC has secured fresh funding and has reached new operational milestones at its Tendrara gas project in eastern Morocco, which is said to be advancing towards commercial production.

The transition energy company announced that it has secured a term loan of €1.3 million ($1.4 million) from an international investment bank, along with a capital raise of £500,000 ($635,000) through the issuance of new shares. 

The funding, which amounts to approximately around $2.2 million, will be used to support its working capital needs before the company starts its initial sales of liquefied natural gas (LNG).

Chief Executive Officer Majid Shafiq noted that the funding will enhance the company’s financial position, supporting its overall strategy of gas and renewable energy development in Morocco.

On the operational side, Sound Energy noted that it has fully tested and commissioned the gas gathering system, with the LNG storage tank also passing its testing phase, which is a major milestone in the first phase of the project.

The company is currently in the final preparation stages of the micro-LNG plant for the final commissioning, a process which is essential before the production phase can begin. 

Judging from the updated project schedule the company has provided, gas sales are set to start in the early part of the third quarter in 2026.

Sound Energy expects the first stage of Tendrara to produce 100 million cubic meters of LNG over a period of ten years. And it projects the second stage to increase the project’s overall production capacity to 400 million cubic meters a year.

In addition, the company anticipates the solar projects to leverage the medium voltage grid in the country, with Sound Energy identifying the locations on the basis of proximity to substation locations and industries to ensure the efficient distribution of electricity. 

Initial development work will concentrate on a limited number of locations that the company has already identified, although discussions are ongoing on other locations.

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