Alphaden Energy & Oilfield, a Nigeria-founded energy services company, has secured a US $60M loan from the African Export-Import Bank (Afreximbank) that will be used to fund the construction of a gas processing facility in Bayelsa, Nigeria.
The agreement was officially signed during the African Energy Week 2023 event in Cape Town. The signing ceremony involved Alphaden Energy & Oilfield CEO, Paschal Anyanwu, and Afreximbank Director and Global Head of Client Relations, Rene Awabeng. NJ Ayuk, the founder and executive chairman of the African Energy Chamber (AEC), also attended the signing ceremony and emphasized the critical role of gas in Africa’s energy security. Paschal Anyanwu expressed the significance of this agreement, stating that every step taken would contribute to the energy independence of the continent.
READ:Glencore, Marathon Oil seal LNG deal in Equatorial Guinea
Energy security
The loan, with a seven-year duration, will see the development of a facility capable of processing 20 million standard cubic feet of gas per day. This facility will be located at the Obama flow station within the site of Oil Mining License 63 and will have a daily production capacity of 405 million tons of liquefied natural gas (LNG) and 294 barrels’ worth of crude condensates.
The repayment of the loan is expected to come from the proceeds generated by the sale of condensate gas. Six offtaker entities have already been identified to handle the logistics of national distribution via 20-ton ISO tanks.
“Gas is going to play a leading role in how we develop Africa’s energy security”, said Founder and executive chairman of South Africa-headquartered energy advocacy organisation the African Energy Chamber (AEC), NJ Ayuk.