During the ongoing African Energy Week (AEW) in Cape Town, South Africa, Nigeria and the African Export Import Bank (Afreximbank) officially signed an agreement to secure funding for a $200 million Liquefied Natural Gas (LNG) project located in Bayelsa State. This significant partnership involves Afreximbank and the project’s developers, AlphaDen Energy and Oilfield Limited, responsible for constructing a 20 million standard cubic feet per day gas processing facility.

Per the terms of the agreement, Afreximbank will provide 70 percent of the funding, while the project promoters will cover the remaining 30 percent. The project will be situated at the Obama flow station within Oil Mining License, OML 63, and is designed to have the capacity 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, expressed that this pioneering project aligns with the Nigerian government’s efforts to commercialize and monetize the vast gas reserves for use across various sectors, including industries, homes, and transportation. He highlighted the support and encouragement received from the Nigerian Content Development and Monitoring Board (NCDMB) in advancing this vital project. NCDMB has been actively supporting 100 companies as part of their strategic plan for business growth.

Engr. Simbi Wabote, the Executive Secretary of NCDMB, emphasized the commitment to nurturing these companies for greater achievements.

N.J. Ayuk, the Executive Chairman of the African Energy Chamber, celebrated this milestone, recognizing it as a significant development for both Nigeria and Africa. He stressed that gas will play a pivotal role in advancing energy security on the continent. The project, valued at 45 billion Naira ($60 million), will be developed by an African company.

Rene Awambeng, Director of Client Relations at Afreximbank, reaffirmed the bank’s dedication to funding such projects, considering this agreement as just the beginning in their journey toward gas development.

The facility’s repayment will come from the sale of condensate gas, which has already been secured by six offtakers. This gas will be transported to customers across Nigeria’s six geopolitical regions using 20-ton ISO tanks.

Engr. Gbenga Komlafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), underscored the Nigerian government’s unwavering commitment to ending the practice of gas flaring in its oil fields, emphasizing that gas flaring is considered unacceptable by the Federal Government of Nigeria (FGN).

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