Sound Energy, the European and African focused upstream gas company, said it received a non-bonding funding proposal of up to US$100 million from the financial advisor to a Moroccan fund for the construction of a pipeline that will export gas to Europe.
Advisory & Finance Group Investment Bank’s proposal comes on behalf of Oil & Gas Investment Fund shareholders as well as other institutions for the construction of the 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 pipeline to be approximately $60 million for a 12 inch pipeline and $100 million for a 20 inch pipeline.
Sound Energy said the pipeline is a critical part of the infrastructure to commercialise 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,” the company said.
The proposal from AFG confirms that a subset of institutions may be willing to fund the planned Tendrara upstream processing facilities, Sound Energy added, without giving more details.