Nigeria and the African Export Import Bank (Afreximbank) have inked a transformative agreement aimed at financing the nation’s ambitious $200 million Liquefied Natural Gas (LNG) project in Bayelsa State.
This accord, signed by Afreximbank and project promoters AlphaDen Energy and Oilfield Limited, paves the way for the construction of a cutting-edge 20 million standard cubic feet per day gas processing facility.
Under the terms of this agreement, Afreximbank will extend 70% of the required funds, with the remaining 30% to be shouldered by the project promoters.
The facility, set to rise at the Obama flow station within Oil Mining License OML 63, will boast the capability to produce a staggering 405 million tons per day of LNG and 294 barrels per day of crude condensate.
Pascal Anyanwu, the Executive Chairman of AlphaDen Energy, emphasized the project’s significance in commercializing Nigeria’s vast gas reserves for use in industries, homes, and the transportation sector.
Furthermore, it aligns with the Nigerian Content Development and Monitoring Board’s initiative to foster growth among 100 companies.
Engr. Simbi Wabote, Executive Secretary of NCDMB, stressed the importance of supporting these companies to achieve greater heights.
NJ Ayuk, Executive Chairman of the African Energy Chamber, celebrated the venture, noting that it marked a pivotal moment for Nigeria and Africa, serving as a catalyst for energy security and development.
Afreximbank’s Director of Client Relations, Rene Awambeng, underlined their unwavering commitment to gas development, emphasizing that this was only the beginning of their endeavors.
This venture will be repaid through the sale of condensate gas, secured by six off-takers, and transported using 20-ton ISO tanks to customers across Nigeria’s six geopolitical regions.
The initiative mirrors the Federal Government of Nigeria’s stance against gas flaring, reinforcing its dedication to ending this environmentally detrimental practice in the nation’s oil fields, as noted by Gbenga Komlafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The agreement at AEW ignites hope for a cleaner, more energy-independent Africa.