Image by Rudy and Peter Skitterians
In a monumental move, Nigeria has inked a deal with the African Export-Import Bank (Afreximbank) to fund a $200 million Liquefied Natural Gas (LNG) project in Bayelsa State, according to Vanguard News. The agreement, a significant stride towards Nigeria’s energy independence, was ceremoniously signed at the ongoing African Energy Week in Cape Town, South Africa.
Afreximbank, in collaboration with the project promoters AlphaDen Energy and Oilfield Limited, will finance the construction of a 20 million standard cubic feet per day gas processing facility. The bank is set to provide 70 per cent of the required funds, leaving the project promoters to cover the remaining 30 per cent.
This pioneering project aligns with the Federal Government’s initiative to commercialise Nigeria’s substantial gas reserves, aiming to bolster its use across industries, homes, and the transport sector. The facility, situated at the Obama flow station in Oil Mining License (OML) 63, will have the capacity to produce a substantial 405 million tons of LNG and 294 barrels per day of crude condensate.
The initiative is crucial for Nigeria and holds significant implications for global energy landscapes. It symbolises a concerted effort to harness Africa’s vast gas reserves for sustainable development and energy security. The project, once operational, will facilitate the delivery of condensate gas to various regions across Nigeria, marking a significant advancement in the nation’s journey towards energy sufficiency and a reduced carbon footprint.
