A balanced and evolving portfolio
Sound Energy is an AIM listed onshore transitional energy company focused on leveraging expertise to advance our portfolio of natural gas assets, as well as develop, manage, and monetise select transitional energy projects.
Sound Energy holds the largest area of onshore petroleum licences in Morocco, totalling 28,129 sq. km's. We are currently developing a natural gas discovery at Tendrara for power generation as an alternative to the extensive domestic coal usage and to provide lower carbon footprint domestic LNG to replace imported LPG.
Morocco has substantial growth plans that will drive increasing energy demand and envisages this demand to be met from renewable energies and natural gas, whilst reducing the need for base load coal usage within the nation’s energy mix. Natural gas, therefore, plays a strategic role as both a bridging fuel and catalyst to sustain Morocco’s growing energy needs across the power and industrial sectors.
The Moroccan Government is committed to reduce dependency on imports, with a clear energy policy focused on energy security, affordability, and sustainability through carbon reduction.
With electricity needs growing at a sustained yearly rate of about 5%1, the Morocco National Energy Strategy has stated its plan to harness renewable energy and add 3,900 MW of new gas-fired power capacity2 as an alternative to coal. The country has also stated its goal of increasing the use of natural gas in power generation from 5% to 25% by 20303, alongside substantial growth in solar, wind and hydro energy projects.
Sound Energy, therefore, is supporting this increasing gas demand by developing its discovered resource and moving the identified exploration potential into developable resources.
We are developing our gas discovery with proven LNG and piped gas technologies and we seek to grow by maturing the previously overlooked, high-potential, natural gas plays. To achieve this, we are following the geological continuation of the prolific and well established Algerian sub-salt Triassic and Palaeozoic natural gas plays into Morocco.
We believe that a critical element to extending these plays into Morocco is the presence of the Triassic salt seal. The thick salt acts to preserve these deeper petroleum systems from the disruptive effects of the later Atlantic and Alpine tectonics. These events have complicated, and often compromised, the shallower post-salt plays which have been targeted historically.
Sound Energy has the opportunity to access the overlooked, high exploration potential with 28.35 Tcf4 identified across all our held licences in these Triassic and Palaeozoic plays.
Our exploration potential is being explored alongside developing the infrastructure for accelerated gas discovery access to market and monetisation.
Our Strategy is to move the Company along the asset monetisation chain via development and into production, whilst retaining substantial growth potential in the energy space to generate enhanced returns for our shareholders. Whilst offering an alternative to higher carbon footprint fuels through developing domestic natural gas resources, our future focus also includes bringing our financial structuring and engineering project management skills to development of a select range of energy transition opportunities including renewables. Together with our partners we are fuelling the Energy Transition.
1 IEA Energy Policies Beyond IEA Countries 2019 Morocco
2 Moroccan nationally determined contribution under the UNFCCC 2016
3 ONHYM 2021
4 Internal exploration potential estimates, unrisked original gas in place (gross)