By Emeka Anaeto
ANOH Gas Processing Company Limited (AGPC), a gas processing company established by the Nigerian Gas Company (NGC) and Seplat Petroleum Development Company Plc (Seplat) on a 50-50 basis has successfully raised $260million in debt to fund the completion of the AGPC Gas Processing Plant. The financing was more than 50percent oversubscribed.
The 300MMscfd capacity project is located on OML 53 in Imo State, Nigeria. AGPC’s shareholders – NGC and Seplat have each provided $210million in equity funding. The $260million financing allows for an additional $60million accordion at the time of completion to fund an equity rebalancing payment at that time, if appropriate.
The $260million funding was provided by a consortium of seven banks: 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 AGPC plant when fully operational 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.
LPG sales will also be developed to help replace biomass for cooking in households. Households and businesses will benefit from significant cost savings, and most importantly, the project will provide employment, training and development for local communities.
Yusuf Usman, Chairman of AGPC, said: “This Financing Agreement; for the development of the ANOH Gas Processing Plant will significantly contribute to the realisation of the Federal Government’s initiatives towards increasing natural gas utilization in the domestic market. With the equity of $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.”
Okechukwu Mba, Managing Director of ANOH Gas Processing Company said: “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.”