Sound Energy receives funding proposal to develop Tendrara gas field
UK-based upstream gas company Sound Energy has received an indicative non-binding commercial proposal from Advisory & Finance Group Investment Bank (AFG) for up to $100m to fund a key facility to develop the Tendrara gas field in Eastern Morocco.
AFG offered the indicative proposal on behalf of a range of institutions, including shareholders of Oil & Gas Investment Fund (OGIF), Sound Energy’s partner in Morocco.
Prior to this proposal, Sound Energy received a non-binding expression of interest from OGIF in July last year in relation to the latter’s interest in funding, building and operating a new pipeline connecting Tendrara to the Gazoduc Maghreb Europe (GME) pipeline.
Subject to the agreement of terms and contract, the proposal is for the provision of funding for the construction of the Tendrara Gas Export Pipeline (TGEP) connecting Tendrara to the GME pipeline.
The gross capital cost of the TGEP pipeline is currently estimated to be about $60m for a 12in pipeline and $100m for a 20in pipeline.
The TGEP will be required to support the commercialisation of gas from Tendrara by connecting the proposed Tendrara processing facilities to the GME pipeline.
Connection to the GME pipeline and to the Moroccan and Southern European gas markets is expected to support Sound Energy's strategy to access infrastructure connected to growing domestic, as well as international gas markets.
AFG has been advised that a subset of the institutions may also fund the planned Tendrara upstream processing facilities.