By Adedapo Adesanya
The operator of Africa’s largest natural gas plant, the Nigerian LNG (NLNG) Limited, has disclosed that talks were ongoing with the nation’s top lenders for a loan of $10 billion to enable it finance its Train 7 Project.
This was according to the company’s Chief Executive Officer, Mr Tony Attah, who said it was having discussions with Guaranty Trust Bank Plc, Zenith Bank Plc and others to raise as much as $2 billion, and with foreign lenders and export-credit agencies for the balance.
The funds, he revealed, will go toward building the gas plant’s seventh train, expected to boost output by 40 percent.
The seventh train will cost as much as $7 billion to build, with another $3 billion going for gas-gathering projects and pipelines needed to feed the new unit.
“We have done the financial market pitch to know who has capacity,” Mr Attah said in an interview in Abuja, the nation’s capital.
Nigeria is on track with nations like the US and Australia in increasing its output of the fastest-growing fossil fuel to help meet rising natural gas demand led by China.
With the planned expansion, the NLNG’s output is expected to reach 30 million tonnes a year when completed in five years, from the current 22 million tonnes.
Nigeria LNG has appointed Guaranty Trust and Sumitomo Mitsui Banking Corporation as financial advisers for the fund raising that will be a combination of debt and equity.
Dipo Olowookere