An indigenous gas processing firm, ANOH Gas Processing Company Limited (AGPC), has raised $260m from a consortium of seven Banks to complete the AGPC Gas Processing Plant.
Speaking at the signing of the Memorandum of Understanding (MOU) in Abuja, the Managing Director of the firm (AGPC), Okechukwu MBA, said when fully operational, the Gas Processing Plant could fuel the generation of about 1.2GW electricity, thereby helping Nigeria reduce its dependence on small-scale diesel generators and transit to cleaner, less expensive fuels, such as natural gas for power generation.
He stated further that LPG sales will also be developed to help replace biomass for cooking in households, as the M.D also disclosed that, the funding agreement enables them to complete the ANOH project. Once operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses.
Mba also disclosed that, “this funding agreement enables us to complete the ANOH project. Once operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses”
AGPC’s shareholders, the NGC and Seplat have each provided US$210m in equity funding, as the US$260m financing allows for an additional US$60m accordion at the time of completion to fund an equity rebalancing payment at that time, if appropriate.
ANOH Gas Processing Company Limited, is established by the Nigerian Gas Company (NGC) and Seplat Petroleum Development Company Plc (Seplat), on a 50-50 basis.
In his address, Chairman of the firm, Yusuf Usman, noted that the Financing Agreement; for the development of the ANOH Gas Processing Plant will significantly contribute to the realization of the Federal Government’s initiatives towards increasing natural gas utilization in the domestic market.
The consortium of banks include; United Bank for Africa Plc, Zenith Bank Plc, Stanbic IBTC Bank Plc (advisor), FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited,
The financing was more than 50% oversubscribed.
The 300MMscfd capacity project is located on OML 53 in Imo State, Nigeria.
AGPC’s shareholders, the NGC and Seplat have each provided US$210m in equity funding.
The US$260m financing allows for an additional US$60m accordion at the time of completion to fund an equity rebalancing payment at that time, if appropriate.
“With the equity of US$420 million already injected by the sponsors of the Project (NNPC and Seplat) both Shareholders reinforce their commitment to expanding gas infrastructure in Nigeria as well as progressing towards making natural gas the future energy for Nigeria”.
