Afreximbank and Alphaden Energy & Oilfield Limited have signed a 7-year term loan agreement for a $60 million processing facility in Bayelsa State, Nigeria.
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, Nigeria.
The agreement was signed by Paschal Anyanwu, CEO of Alphaden Energy & Oilfield Limited, and 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 on 18 October organized by the African Energy Chamber (AEC).
“We all believe that gas is going to play a leading role in how we develop Africa’s energy security,” stated NJ Ayuk, Executive Chairman of the AEC, who was present at the deal signing, adding, “This is going to be a 45 billion Naira ($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 63, and will have the capacity to produce 405 million tons per day of Liquefied Natural Gas and 294 barrels per day of crude condensates.
“We believe that every little step that we take will help make contributions towards the energy independence of this continent,” Anyanwu stated, adding, “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 offtakers and will be transported using 20-ton ISO tanks to customers throughout Nigeria’s six geopolitical regions.
Poised to reduce gas flaring and generate significant value from Nigeria’s natural gas resources, the transaction is very significant for Afreximbank with regards to its commitments to Africa’s energy transition.