Chariot Ltd (AIM:CHAR, OTC:OIGLF) Anchois gas project looks set to transform Morocco’s energy security dynamic at a time of long-term instability in European gas markets, Liberum Capital analyst Sam Wahab said in a note.
Liberum in a note began its coverage with a ‘buy’ recommendation with Wahab pitching a price target of 45p, suggesting substantial upside to the current price of 16.12p.
Wahab highlighted that Anchois is expected to be onstream in 2025 when it will deliver an estimated 70mln and 100mln cubic feet per day into what he described as a “gas hungry” market which currently experiences elevated European gas prices.
“Chariot’s flagship Anchois transitional gas discovery looks set to transform Morocco’s energy security dynamic at a time of long-term instability in European gas markets,” Wahab said.
“The company is also highly active across the wider African renewables market, with a stake in an operational solar project and a strong pipeline of renewable projects targetig first generation in the next three years.
He added: “Longer term, Chariot’s 50% stake in Project Nour, alongside Total Eren in Mauritania, is targeting 10GW of green hydrogen/ammonia production capacity generated by high-density wind and solar.”
The Liberum initiation comes after an announcement earlier this month revealed Chariot had entered into a partnership in Morocco to create a midstream joint venture overseeing the distribution of natural gas to industrial customers in Morocco, which it said will further support the commercial viability of its Anchois project there.
The partnership is with Vivo Energy, a pan-African retailer and distributor of high-quality fuels and lubricants, which has a sizeable presence in Morocco’s petroleum products sector via its network of more than 400 service stations while also supplying commercial and industrial customers in the country.