The European Bank for Reconstruction and Development (EBRD) is supporting SDX Energy Morocco with a loan of up to €10 million to finance the enhancement of upstream gas production and related gas transport infrastructure to Kenitra industrial zone customers.
The project is expected to facilitate a switch away from polluting fuel oil and it is anticipated that it would result in a reduction of 20,000 tonnes in CO2 emissions per year.
Eric Rasmussen, director of the EBRD’s natural resources team, said: “I am proud that the EBRD is playing a key role in unlocking the potential of SDX’s domestic gas development project in the Gharb region. SDX’s project sets an example of how private sector investors can help raise safety and environmental standards in Morocco’s energy sector and reduce the country’s dependence on imported energy.”
The investment will alleviate the environmental burden in the Kenitra region by supporting the extension of gas supplies and the reduction of the use of fuel oil. The city’s recent industrial growth led to an increase in energy demand, especially in the newly-created Atlantic free zone, where the French car manufacturer Peugeot-Citroën is planning to start production in the coming months.
Victoria Zinchuk, the acting director of EBRD Morocco, added: “The project is in line with Morocco’s sustainable energy strategy goals while promoting the development of cleaner fuel supplies, energy efficiency and the transition to a lower carbon economy. SDX Energy is a very good example of a private sector investment in sustainable energy solutions and we are very happy to support it.”
SDX Energy is an international company active in the exploration and production of oil and gas, currently operating in North Africa with assets in Egypt and Morocco. It was created in 2015 by the merger of Sea Dragon Energy and Madison PetroGas. SDX Energy has been listed on the London Stock Exchange’s AIM Market since May 2016.
The EBRD has been working in Morocco since 2012. To date, the bank has invested over €1.5 billion in 36 projects across the country, in addition to over €250 million of trade facilitation credit lines with local banks.