By Adedapo Adesanya
The African Export-Import Bank (Afreximbank) has signed a 7-year term loan agreement with Nigeria’s Alphaden Energy & Oilfield Limited for the construction of a 20 million standard cubic feet per day gas processing facility in Bayelsa State.
The deal was signed by Mr Paschal Anyanwu, CEO of Alphaden Energy & Oilfield Limited, and Mr Rene Awabeng, Director and Global Head of Client Relations at Afreximbank, during the second day of African Energy Week (AEW) 2023, taking place in Cape Town, South Africa October organised by the African Energy Chamber (AEC).
Speaking on the deal, Mr NJ Ayuk, Executive Chairman of the AEC, who was present at the signing said, “We all believe that gas is going to play a leading role in how we develop Africa’s energy security.
“This is going to be a N45 billion ($60 million) energy facility that will be developed by an African company. On behalf of the African Energy Chamber and Afreximbank, we salute you.”
The project will be built at the Obama flow station, situated in Oil Mining License (OML) 63, and will have the capacity to produce 405 million tons per day of Liquefied Natural Gas (LNG) and 294 barrels per day of crude condensates.
According to Mr Anyanwu, “We believe that every little step that we take will help make contributions towards the energy independence of this continent. This day marks a significant day in this journey, and hopefully, there will be more that will follow in these footsteps as we follow those before us.”
The facility will be repaid from the sale of condensate gas, which has been secured by six off-takers and will be transported using 20-ton ISO tanks to customers throughout Nigeria’s six geopolitical regions.
The project is also poised to reduce gas flaring as part of environmental responsibility and generate significant value from Nigeria’s natural gas resources.
According to the Cairo-based bank, the transaction is very significant for Afreximbank with regard to its commitments to Africa’s energy transition.
Modupe Gbadeyanka