Sound Energy (AIM:SOU), the transition energy company, in Friday's results statement, highlighted that first LNG sales from its Tendrara micro‑LNG project are expected in early Q3 2026.
Project operator Mana Energy has re‑scoped the mLNG contract from vendor financing to a conventional EPC contract and secured a $25m facility from Attijariwafa Bank for the consortium, of which Sound's share is approximately $5m.
Significant 2025 activity included clean‑up and commissioning of wells TE‑6 and TE‑7, connection of the wells to the mLNG plant and delivery, installation and connection of processing packages, with work continuing into 2026.
"We are focussed on advancing and optimising our businesses in Morocco, with the objective of transitioning them into cash‑generative operations on an expedited basis and strengthening our balance sheet," said Majid Shafiq, Chief Executive Officer.
The company recognised an impairment charge of approximately £12.5m at 31 December 2025 related to Sidi Moktar licence uncertainty and disclosed a post‑period letter from ONHYM seeking a $1.5m claim against a guarantee, which it is disputing and did not provide for at year end.
A binding gas sales agreement with Afriquia Gaz underpins Phase 1 with a ten‑year take‑or‑pay commitment for 100m normal cubic metres per year at $6–$8.346 per mmBTU ex‑plant.
Phase 2 pipeline development has slipped, with an FEED update and EPC selection under way and outstanding conditions precedent, including finalising a gas sales agreement, remaining for debt close and FID.
Sound has diversified in Morocco with HyMaroc for natural hydrogen exploration with Getech and, post period, Tayra Energy with Gaia to develop medium and high voltage solar projects.
The company reported 120 tonnes CO2e for 2025, representing its 20% share at Tendrara, and said ESG commitments remain core as it shifts to a non‑operator role while pressing for revenue generation and balance sheet strengthening.
