AlphaDen Energy has signed a $200 million liquefied natural gas (LNG) project with the African Export and Import Bank (AfreximBank).
Vanguard Nigeria reports that the agreement was signed during the ongoing African Energy Week event in Cape Town, South Africa.
The agreement signed is aimed at financing a $200 million Liquefied Natural Gas (LNG) project in Bayelsa State. The project is led by AlphaDen Energy and Oilfield Limited and focuses on the construction of a gas processing facility capable of handling 20 million standard cubic feet per day.
Under the terms of the agreement, Afreximbank will provide 70% of the required funds, while the remaining 30% will be contributed by AlphaDen. This project is set to be established at the Obama flow station, located within the Oil Mining License, OML 63.
It will boast the capacity to produce 405 million tons per day of liquefied natural gas (LNG) and 294 barrels per day of crude condensate.
During the signing, AlphaDen Energy’s Executive Chairman, Pascal Anyanwu, emphasized that this pioneering project aligns with the Nigerian government’s efforts to commercialize its vast gas reserves for use across various sectors, including industries, households, and transportation.
He also highlighted the support received from the Nigerian Content Development and Monitoring Board (NCDMB) for the project, reflecting the government’s commitment to fostering local industry growth.
The NCDMB’s Executive Secretary, Engr. Simbi Wabote, confirmed their efforts to bolster the growth of 100 companies, aligning with a strategic plan to elevate them to greater heights.
Meanwhile, NJ Ayuk, the Executive Chairman of the African Energy Chamber, also commended the initiative, underscoring its potential to harness significant gas resources for regional development.
This collaboration between Nigeria and Afreximbank is a substantial step toward advancing the nation’s energy independence and contributes to the broader goals of Africa’s energy sector.
Note that during the African Energy Week, Ian Thom, the Upstream Research Director at Wood Mackenzie highlighted the fact that a significant $800 billion capital expenditure (capex) program is currently underway in the African upstream oil and gas sector.
This substantial investment is set to transform the sector, bringing liquefied natural gas (LNG) to the forefront as a major investment theme, alongside the traditional deepwater oil.
He noted that given Africa’s abundant gas resources, the continent is actively exploring various opportunities to harness and develop gas for both domestic consumption and export markets.
Note that currently, Africa’s LNG exports stand at just over 40 million tons per annum (mmtpa), and several LNG projects in Sub-Saharan Africa are at different stages of development.