Page 16 - AfrOil Week 07 2022

AfrOil NEWS IN BRIEF AfrOil

Sound Energy issues notice

to proceed with Phase 1

work at Tendrara site

Sound Energy, the energy transition company,
has announced the issue to Italfluid Geoenergy
of a 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.
The Notice to Proceed has been issued to the
Contractor by Sound Energy’s wholly owned
subsidiary, Sound Energy Morocco East Ltd
(SEMEL) and, following an initial payment of
$5mn by SEMEL (on behalf of the Tendrara
Concession JV) to the Contractor, will oblige expansion project at the Nigeria LNG (NLNG) Power Purchase Agreement (PPA) to gener-
the Contractor to execute the works set out in plant on Bonny Island. ate baseload electricity from a 2.7-MW plas-
accordance with the Project Contract for the According to a recent company statement, tic-to-syngas power plant in South Africa’s
provision of a gas processing and liquification CHEC won an engineering, procurement and Gauteng province.
facility in relation to the Phase 1 development of construction (EPC) contract from the interna- The project is the first to be operated by
the Tendrara Concession. tional joint venture that is acting as the main Sustineri Energy, a joint venture between Kibo
Following the issue of the Notice to Proceed, contractor for the Train 7 project. Energy (65%) and Industrial Green Energy Solu-
the Company has also notified Afriquia Gaz Under that contract, the Chinese company tions (IGES, 35%).
that pursuant to the Loan Note Subscription will be responsible for designing and build- The plant would be constructed, commis-
Agreement (LNSA) entered into between the ing the hydraulic structure of the wharf and sioned and operated for an industrial business
Company and Afriquia on December 29, 2021, approach bridge at NLNG’s seventh production park developer in Gauteng.
all necessary undertakings and agreements have train, including the pile foundation and con- The project involves burning domestic and
been completed and that the Project Contract is crete, the statement said. industrial waste. This involves using a high-tem-
now in full force and effect. As a result, the LNSA CHEC did not reveal the value of the contract perature pyrolysis process, in which selected
is now in full force and effect and the Group or say when it expected to begin work. It did say, non-recyclable plastics undergo thermal deg-
intends to immediately draw down a proportion however, that it would also be responsible for radation to produce high quality syngas, which
of the funds available under the LNSA to meet designing and building a steel platform and aux- would in turn feeds gas engines to generate both
the Initial Payment. iliary facilities for the hydraulic structure. electricity and heat energy.
Further announcements will be made, as NLNG’s main contractor for the Train 7 pro- There is also potential to sell the heat energy
appropriate, in due course. ject is Saipem-Chiyoda-Daewoo (SCD), an Ital- generated as a by-product from the gas engines
Graham Lyon, Sound Energy’s Executive ian-led joint venture that also includes Japanese directly to customers inside the industrial park.
Chairman, commented: “We are delighted to and Korean partners. The scheme is designed to The portfolio’s initial target is to generate
have issued the Notice to Proceed to Italfluid raise NLNG’s production capacity from 22.5 mn more than 50 MW of electricity for sale to indus-
and to have satisfied all conditions to give effec- tonnes per year (tpy) to 30mn tpy. It envisions trial users.
tiveness to both the Project Contract and LNSA, the construction of a seventh production train Sustineri Energy aims to develop a pipeline of
which means that following receipt of the Initial that can turn out 4.2mn tpy, as well as the debot- seven projects and will utilise pyrolysis technol-
Payment by Italfluid, the execution phase of our tlenecking of existing trains, which will add ogies to convert waste non-recyclable plastics to
fully funded Phase 1 micro-LNG development another 3.4mn tpy of capacity. syngas for the generation of energy.
of the Tendrara Concession will be underway. Equity in the NLNG consortium is divided In May 2021, Kibo said that it would build up
This is a key milestone for the Company and we between state-owned Nigerian National Petro- the project’s generating capacity from an initial 2
look forward to working with our strategic part- leum Corp. (NNPC), with 49%; Royal Dutch MW to 8 MW in 2-MW phases over three years.
ners, Italfluid and Afriquia Gaz, together with Shell (UK/Netherlands), with 25.6%; TotalEn- The project development is expected to last for
our joint venture partner, ONHYM, in develop- ergies (France), with 15%, and Eni (Italy), with no longer than 16 months, including construc-
ing the project and delivering gas to the Moroc- 10.4%. The partners began production in 1999 tion for the first phase of 2 MW.
can market in around two years.” and broke ground on the Train 7 project in June “This opportunity to enter the South African
Sound Energy, February 16 2022 of last year. waste-to-energy market in strategic partnership
bna/IntelliNews, February 16 2022 with Lesedi and IGES, is a win-win for all par-
CHEC to act as Kibo Energy signs PPA for ties,” said Louis Coetzee, CEO of KIBO.
The 50-MW project pipeline also positions
subcontractor for 2.7-MW plastic-to-syngas Kibo squarely in the new and exciting renewa-
ble energy industry in South Africa and places
NLNG’s Train 7 project us firmly on a programme to production and
revenue in the short to medium term,” Coetzee
China Harbour Engineering Co. (CHEC) is power plant added in this morning’s statement.
slated to act as a subcontractor for the Train 7 Kibo Energy has signed a 10-year conditional bna/IntelliNews, February 15 2022

P16 www. NEWSBASE .com Week 07 16•February•2022