Page 12 - AfrOil Week 31 2021

AfrOil PROJECTS & COMPANIES AfrOil

The latter company will receive the LNG at the to announce the signature of a binding 10-year
TE-5 site at the Tendrara field and will then be LNG sales agreement for the Phase 1 develop-
responsible for transporting and delivering it to ment covering the sale of not less than 100mnn
Morocco’s domestic gas market, it noted. cubic metres of gas in a liquefied form per year.
“Pricing under the LNG SPA will be within a In addition, the execution of the previously
range, the floor price being $6 per mmBtu and announced equity subscription agreement and
the ceiling price commencing at $8 per mmBtu the GBP2mn equity placing cements the stra-
and increasing during the course of the LNG tegic alignment between Sound Energy and
SPA to $8.346 per mmBtu, and will be deter- Afriquia Gaz. This is a key milestone in moving
mined using an indexed formula [that] applies forward towards the final investment decision
a combination of the European Title Transfer [FID] and notice to proceed for the Tendrara
Facility and United States Henry Hub bench- Phase 1 Development.”. ™
mark indices,” Sound Energy added.
It went on to say that execution of the SPA
was dependent on the parties’ ability to meet
several conditions by October 29, 2021. These
conditions include securing the approval of
the joint venture, signing a loan agreement
under which Sound Energy will take out an
$18mn secured loan from Afriquia Gaz with a
12-year repayment term and a 6% annual inter-
est rate and executing a project contract under
which Italfluid Geoenergy (Italy) will provide a
gas-processing and liquefaction plant for Phase
1 development. Additionally, Afriquia Gaz must
secure agreement in principle for the sale of at
least 60% of minimum take-or-pay volumes
to downstream buyers and obtain regulatory
approval for the transport of LNG via tankers
and the sale of LNG.
Sound Energy did not comment on its plans
for meeting all these requirements. It did say in
the statement, however, that it had entered into
an equity subscription agreement with Afriquia
Gaz. This deal provides for the latter company
to make a GBP2mn ($2.78mn) subscription for
159,731,651 new ordinary shares in the former,
it said.
Graham Lyon, the executive chairman of
Sound Energy, commented: “We are delighted The Tendrara gas field is in eastern Morocco (Image: Sound Energy)

Air Products to supply MCHEs

for NLNG’s Train 7 project

NIGERIA US-BASED Air Products has agreed to supply units.
heat exchangers for the Nigeria LNG (NLNG) Air Products has not disclosed the value of
consortium’s Train 7 project. the deal. But it has said that it intends to build
According to a company statement, Air the MCHEs at its manufacturing facility in Port
Products has won a contract for the equipment Manatee, Florida. Additionally, it has stated that
from Saipem-Chiyoda-Daewoo (SCD), the it will deliver the equipment in 2023.
Italian-led joint venture that is serving as engi- This is not Air Products’ first time working
neering, procurement and construction (EPC) on an NLNG-related project. The company also
contractor for the project. Under the contract, provided MCHEs and process technology for
the company will provide main cryogenic heat the consortium’s six existing production trains,
exchangers (MCHEs) for two new gas liquefac- making its first delivery to Train 1 in 1999 and
tion units, including an entire new LNG pro- its sixth delivery to Train 6 in 2007.
duction train as well as a combined liquefaction NLNG is the operator of a gas liquefaction
facility, as well as process technology for both plant on Bonny Island.

P12 www. NEWSBASE .com Week 31 04•August•2021