Nigerian Liquefied Natural Gas (NLNG) has sought the sum of $2 billion from commercial banks to finance its Train 7 gas project of $10 billion.
Earlier reported SCD Group’s declaration of intent to undertake the $10 billion project after emerging successful out of the bidding process. It is a joint venture consortium between the SCD Group comprising Saipem, Daewoo and Chiyoda and the Nigerian Liquefied Natural Gas (NLNG).
The Details: NLNG has now gone ahead to approach top tier banks like Guaranty Trust Bank Plc and Zenith Bank Plc to raise $2 billion for the project with the hope that foreign lenders and export-credit agencies will account for the remaining shortfall according to NLNG CEO, Tony Attah.
“We have done the financial market pitch to know who has the capacity,” Attah said.
Inside the financing plan: The fund is expected to comprise of debt and equity with Guaranty Trust and Sumitomo Mitsui Banking Corporation playing the role of financial advisers. The project is estimated to cost $7 billion in construction and an extra $3 billion for the installation of gas pipelines and equipment.
Gas expansion: The project is expected to boost NLNG’s capacity from 22 million tonnes to 30 million tonnes as well as increase Nigeria’s natural gas capacity to meet China’s needs. The project is expected to boost Foreign Direct Investment, FDI profile of the country, and provide about 10,000 jobs during the construction stage. It is a sure way of attaining the 35% increase in its production capacity, from 22 million tonnes per annum, MTPA, to 30 MTPA. The project will last for five years.
What this means: The completion of this project will spur Nigeria to compete with Qatar, Australia, Malaysia, and the U.S in the production of natural gas and be an industry leader in gas exportation.