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    Afreximbank backs Nigerian FLNG project

Summary

Nigeria-based UTM is developing an FLNG facility with a nameplate production capacity of 1.2mn metric tons/year 60 km from the shore of Akwa Ibom state.

by: Shardul Sharma

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Complimentary, Natural Gas & LNG News, Africa, Liquefied Natural Gas (LNG), Security of Supply, Corporate, Investments, Financials, News By Country, Nigeria

Afreximbank backs Nigerian FLNG project

The African Export-Import Bank (Afreximbank) has executed a head of terms with UTM Offshore (UTM) to part-finance a floating LNG (FLNG) facility in Nigeria, it said on July 7.

UTM is undertaking the development, design, and construction of an FLNG facility with a nameplate production capacity of 1.2mn metric tons/year and a storage capacity of 200,000 m3, as well as ancillary facilities to be located 60 km from the shore of Akwa Ibom state.

“This deal marks Afreximbank’s ongoing support in leading UTM’s fundraising efforts to secure the necessary investment required for the projects’ implementation,” it said. “This project is of historical significance as it is the first FLNG project developed by an African-owned company on the continent.”

During the pre-investment stage, the project preparation facility will be deployed to de-risk the project and rapidly progress it towards bankability, the bank said. In addition, the bank will be appointed as mandated lead arranger and lead in syndicating the debt raise – with the ability to incorporate credit enhancements, if required.

The local press had in December last year reported that Afreximbank was mulling extending a $5bn loan to UTM for the project.