Sound Energy signed heads of terms with a consortium comprising Enagas, Elecnor and Fomento for the front end engineering and design (FEED) and conditional construction and financing of all the infrastructure required, including a 20-inch pipeline and facilities, to commercialise the Company’s existing gas discovery in Eastern Morocco.
Following a competitive process and negotiation, the Consortium has been awarded the FEED and exclusivity to finalise the funding, construction and operation for both a 20 inch pipeline and the central processing facility under a build-own-operate-transfer (BOOT) structure.
The Consortium will shortly begin front-end engineering and design (FEED) on a gas processing plant and a 20-inch gas pipeline intended to deliver an estimated 60 mmscf/d of gas to the Gas Maghreb-Europe pipeline system, some 120km away (the Project).
In parallel with the FEED, the Consortium will finalise plans to secure access to some USD 184M of development capital that will be required to fund the Project.
FEED is expected to last six months, after which the Company will be in a position to take the Final Investment Decision (FID).