Sound Energy Morocco
Fomento and its Joint Venture partners (Enagas and Elecnor) were selected to be part of a competitive selection process for the construction, ownership and operation ("BOOT") of a centralized processing center and the construction of a gas pipeline in the Tendrara basin to connect it to the gas pipeline located in the eastern Mediterranean.
The Midstream project will include:
- CPF consisting of various equipment, a gathering system, a treatment plant and a compressor station.
- A 20-inch, 120 km pipeline running through areas with low population density.
- GME's operator, EMPL, is responsible for the technical design and construction of the connection to the GME pipeline.
- The EPC and O&M roles will be assumed by the JV Consortium, which is a leading international player in this sector.
BOOT - Key terms of the contract
- The Production Joint Venture partners are jointly and severally liable for all obligations under the BOOT agreements.
- Duration of 15 years in line with GSA.
- The fee will be set based on the IRR of the agreed equity and adjustable for inflation.
- Commitment to ship or pay (price to be paid if Midstream project is available).
- A payment security mechanism (PSM) will collect revenues from gas sales into a trust account.