Nigeria inks agreement with Afreximbank to fund $200m LNG project

Nigeria has entered into an agreement with the African Export Import Bank (Afreximbank) to secure funding for a $200 million Liquefied Natural Gas (LNG) project located in Bayelsa State. This agreement was formalized during the ongoing African Energy Week (AEW) in Cape Town, South Africa. Afreximbank, alongside the project promoters, AlphaDen Energy and Oilfield Limited, will finance the construction of a gas processing facility with a daily capacity of 20 million standard cubic feet.

Under the terms of the agreement, Afreximbank will provide 70% of the funding, while the remaining 30% will be contributed by the project promoters. The LNG project will be established at the Obama flow station within Oil Mining License (OML) 63 and will have the capability to produce 405 million tons per day of LNG and 294 barrels per day of crude condensate.

Pascal Anyanwu, the Executive Chairman of AlphaDen Energy, emphasized that the project aligns with the Federal Government’s strategy to commercialize and monetize significant gas reserves for various applications, including industrial, domestic, and transportation use. He also highlighted the support and encouragement provided by the Nigerian Content Development and Monitoring Board (NCDMB) for this crucial initiative.

Engr. Simbi Wabote, the Executive Secretary of NCDMB, emphasized the board’s commitment to supporting the growth of 100 companies as part of their strategic plan.

NJ Ayuk, the Executive Chairman of the African Energy Chamber, commended the deal as a significant moment for Nigeria and Africa. He stressed the pivotal role of gas in enhancing the continent’s energy security and the substantial investment in the $60 million energy facility, developed by an African company.

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