Page 13 - GLNG Week 01 2021

GLNG NEWS IN BRIEF GLNG

Morocco invites investors based generation capacity increased by an
AFRICA energy think-tank IRENA, renewables-
Sound Energy secures for Mohammedia port LNG impressive 50% between 2015 and 2020 – and
already accounted for 33% of the country’s
$18mn loan to fund Tendrara upgrade project total installed capacity in the latter year.
LNG project in Morocco The Moroccan government has called on
international firms to bid for its ambitious
UK-based upstream energy company project to upgrade Mohammedia port near ASIA
Sound Energy has secured binding Casablanca to host a liquified natural gas
conditional agreements for a loan of $18mn (LNG) floating storage and regasification unit Pavilion Energy inks deal to
(MAD167mn) to finance the first phase of its (FSRU), the state news agency MAP reported.
Tendrara Liquified Natural Gas (LNG) project The closing date for bids is January 25, 2022. supply small-scale LNG to
in Morocco, according to a statement by the The move aims to guarantee all of
firm. Morocco’s gas requirements. Gas supplies Hangjiaxin
The company had struck the deal in July this to the country from neighboring Algeria
year. However, it had faced challenges in stopped on October 31 last year, as diplomatic Pavilion Energy Trading & Supply and
achieving the required steps. relations between the two countries Zhejiang Hangjiaxin Clean Energy have
The LNG agreement involves the supply deteriorated. signed a term deal for the supply of small-
of at least 100mn cubic metres per year A few days before bids were invited, the scale LNG from Singapore. Under the
to Moroccan firm Afriquia Gaz, which is London-listed energy firm Sound Energy had agreement, up to 0.5mn tonnes per year
providing the loan. Afriquia is a subsidiary of secured binding conditional agreements for (mtpa) of LNG will be delivered to Hangjiaxin
Moroccan conglomerate Akwa Group. MAD167mn ($18mn) of financing for the from 2023.
Sound Energy will proceed to draw down first phase of the Tendrara LNG facility in LNG from Pavilion Energy’s portfolio of
the initial funding from the loan in order to Morocco. natural gas and LNG will be delivered to the
proceed with the execution of the first phase The country’s energy minister Leila Benali 1 mtpa Jiaxing LNG Terminal in Zhejiang,
of the project over a three-year period. The expected Morocco’s natural gas needs to China. The Jiaxing LNG Terminal will be
debt financing will expire in December 2033. triple to 3 bcm by 2040 on the back of the operated by Hangjiaxin, a joint venture
The agreements are secured with a fixed country’s desire to achieve a lower-carbon between city gas distributors Jiaxing Gas, the
interest rate of 6% per annum with interest transition and to ensure an adequate supply of largest pipeline natural gas operator in Jiaxing,
payments to be paid quarterly for a short renewables. and Hangzhou Gas, the largest natural gas
period of time. The government said earlier that it plans to distributor in Zhejiang province.
The $18mn loan includes a prior condition raise the share of renewables in its electricity “Pavilion Energy is very pleased to
that Italfluid Geoenergy provides a gas mix to 52% by 2030, 70% by 2040 and 80% by strengthen our partnership with Hangjiaxin
processing and liquefaction facility, as well 2050 in terms both of power generated and of with the supply of LNG from our portfolio
as verification of the Tendrara joint venture capacity. of diverse global sources. We look forward
partners’ issuing of a notice to proceed to Wind, solar and hydropower energies are to working closely with each other on the
Italfluid. already gaining momentum in Morocco’s successful implementation of this deal,”
electricity sector. According to green said Mr Alan Heng, interim group CEO
of Pavilion Energy: “Supplying small-scale
LNG reinforces our commitment to enhance
Singapore’s position as a regional LNG hub
and support growing demand for small-scale
LNG in Asia.”
Mr Sun Lianqing, CEO of Hangjiaxin
Clean Energy said: “Hangjiaxin is pleased
to enter this sale and purchase agreement
with Pavilion Energy. The execution of this
agreement will provide Hangjiaxin’s own
terminal, the Jiaxing LNG Terminal, with
stable LNG resources, offer Hangjiaxin’s
end-users with more clean energy options in
the long run, and contribute to Hangjiaxin’s
dedication to the reduction of carbon
dioxide emissions and achievement of
carbon neutrality. We look forward to closer
collaborations between the two parties, a
smooth performance of the agreement, and
multi-dimensional in-depth cooperation in
the near future.”
PAVILION ENERGY, December 28, 2021

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