Sound Energy, a European and African focused upstream gas company, obtained a non-bonding funding proposal of up to US$100 million for its eastern Morocco gas project. The proposal has been made by the Advisory & Finance Group Investment Bank (AFG) on behalf of a range of institutions, including shareholders of OGIF (Oil & Gas Investment Fund).
The proposed projects includes the construction of a gas pipeline connecting Tendrara to the Gazoduc Maghreb Europe GME pipeline, Sound Energy said in a statement. The company currently estimates the gross capital cost of the Tendrara Gas Export Pipeline (TGEP) to be approximately $160 million.
The TGEP is a critical part of the infrastructure which will be required to support the commercialisation of gas from Tendrara. Connection to the GME pipeline and therefore to the Moroccan and Southern European gas markets, would support Sound Energy's strategy to access infrastructure connected to growing domestic and international gas markets.