(Agence Ecofin) – Gas is increasingly becoming one of the main pillars of the Nigerian economy. Thus last November, the Nigerian public petroleum company (NNPC) and the local gas producer Seplat launched the construction of a gas processing plant in Imo State.
The Nigerian oil and gas producer Seplat, announced through AGPC, its natural gas processing and distribution subsidiary, the mobilization of a financing of 260 million dollars for the completion of the construction of its natural gas project. ‘Assah.
Carried out through a joint venture with the Nigerian public petroleum company (NNPC), the said project involves building one of the country’s largest gas processing plants, with a capacity of 300 million standard cubic feet per day. Once operational, it should meet 30% of the country’s demand, especially for electricity.
We are pleased to announce that our Incorporated Joint Venture, the ANOH Gas Processing Company (AGPC), has successfully raised US$260m in debt to fund completion of its ANOH Gas Processing Plant. #ANOH is one of Nigeria’s most strategic #gas projects. #DeliveringPower pic.twitter.com/EH5XQtcpFZ
— Seplat Petroleum Development Company Plc (@seplatpetroleum) February 1, 2021
According to a statement posted on the Nigerian Stock Exchange website, the project funding was provided by a consortium of seven local and international banks, including Stanbic Bank, Zenith Bank and Mauritius Commercial Bank. In addition, we learn that funding commitments of over $ 450 million have been received for the rest of the project.
Originally slated to cost $ 700 million, its scale has been scaled down, saving around $ 50 million. Seplat and the NNPC plan to complete the work by the end of this year.
The plant will play a key role in the Nigerian government’s new policy of reducing the country’s dependence on oil, developing cleaner and more accessible sources of energy, and monetizing proven gas reserves which show more than 200 Tcf.
Lorianne Biaou
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