RIYADH: A natural gas project in east Morocco will soon be completed thanks to a new finance push from the largest bank in the North African country.

UK-based Sound Energy has received a conditional offer from Attijariwafa Bank to obtain funding amounting to 2.3 billion Moroccan dirhams ($237 million) for the Tendrara-based project’s second phase, according to a statement.

The funding will be allocated for completing drilling, operating wells, and building a pipeline to transport natural gas to the state’s National Office of Electricity and Drinking Water.

“This financing is the largest of its kind allocated to the development of a gas field in Morocco,” said Sound Energy’s Executive Chairman Graham Lyon.

The company had started negotiations with the Moroccan bank on June 23 2022  to obtain this financing, which extends over a period of 12 years and has a grace period of about two years.

Sound Energy owns the largest area for searching for hydrocarbons in the North African country, with a total of 28 thousand sq. km.

The Tendrara region is home to an estimated 10.68 billion cubic meters of natural gas, according to the company’s official website.

Morocco’s production of natural gas currently stands at 100 million cubic meters, while the total annual consumption amounts to 1 billion cubic meters, which is met by the international market.

In an interview with East Economy earlier in June, Moroccan Minister of Energy Transition and Sustainable Development Leila Benali said natural gas production in the country will increase by 300 million cubic meters.

This is mainly attributed to discoveries being developed in the Tendrara and Larache regions, which will enable Morocco’s production to rise to 400 million cubic meters over the next few years.