FG Partners with Afreximbank to fund $200m LNG project

Nigeria and the African Export-Import Bank have formally entered into an agreement to secure funding for the nation's $200 million Liquefied Natural Gas (LNG) project, located in Bayelsa State.
Afreximbank the punch

The signing of this crucial agreement took place during the ongoing African Energy Week (AEW) held in Cape Town, South Africa with Afreximbank and the project's key proponents, AlphaDen Energy and Oilfield Limited, who are collaborating on the development of a gas processing facility with a daily processing capacity of 20 million standard cubic feet.

As per the terms of this agreement, Afreximbank has pledge to provide 70 percent of the necessary funding for this project, with the remaining 30 percent to be contributed by the project promoters.

This investment is slated to materialize at the Obama flow station, which is situated within Oil Mining License OML 63 and the facility is expected to have the capacity to produce 405 million tons per day of LNG along with 294 barrels per day of crude condensate.

Pascal Anyanwu, the Executive Chairman of AlphaDen Energy, noted that this pioneering initiative aligns with the Federal Government's strategic moves to commercialize and monetize substantial gas reserves.

He said, “We have been encouraged by the Nigerian Content Development and Monitoring Board, NCDMB, to execute this important project. We are one of the 100 companies being encouraged by the Board to grow. We believe that every little step that we take will help make contributions towards the energy independence of this continent.

“This event 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.”

Similarly, the Executive Secretary, NCDMB, Engr. Simbi Wabote, said: “We have been supporting 100 companies to grow as part of our strategic plan to take them to greater heights.”

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