- Afreximbank would provide 70 per cent of the fund, leaving 30 per cent for the project promoters.
- The project will produce 405 million tons of LNG and 294 barrels of crude condensate daily.
AlphaDen Energy has signed an agreement with African Export Import Bank (Afreximbank) to fund the $200 million Liquefied Natural Gas (LNG) project in Bayelsa State. The project leads, AlphaDen Energy and Oilfield Limited, signed the agreement at the ongoing African Energy Week in South Africa. The agreement is for constructing a 20 million standard cubic feet per day gas processing facility.
Under the terms of the agreement, Afreximbank would provide 70 per cent of the fund, leaving 30 per cent for the project promoters. The project, situated at the Obama flow station in Oil Mining License, OML 63, will be able to produce 405 million tons of LNG daily. It will also produce 294 barrels of crude condensate daily. The Executive Chairman of AlphaDen Energy, Pascal Anyanwu, said the pioneering project is part of the Federal Government’s move to commercialise or monetise huge gas reserves for use in industries, homes and the transport sector.
Also speaking at the event, the Executive Chairman of the African Energy Chamber, NJ Ayuk, said, “Indeed, this is a great moment for Nigeria and Africa. It would go a long way to harnessing huge gas for development. We all believe that gas is going to play a leading role in how we develop Africa’s energy security. This will be a 45 billion Naira ($60 million) energy facility that an African company will develop. On behalf of the African Energy Chamber and Afreximbank, we salute you.” The facility will be repaid from selling condensate gas, secured by six off-takers and transported using 20-ton ISO tanks to customers throughout Nigeria’s six geopolitical regions.