The gas plant, which is being built on the OML 53 block in Niger Delta, is now fully funded
ANOH Gas Processing Company (AGPC) has raised $260m in debt towards the completion of its $650m ANOH gas processing plant in Nigeria’s Imo state.
The midstream company is a 50:50 joint venture between Seplat Petroleum Development and the Nigerian Gas Company (NGC), which in turn is a fully-owned subsidiary of Nigerian National Petroleum Corporation (NNPC).
The ANOH gas processing plant is now fully funded with Seplat and NGC previously providing a combined equity funding of $420m.
Located on the onshore OML 53 block in the north eastern Niger Delta, the gas processing plant is planned to have a capacity of 300 million standard cubic feet per day (MMscfd).
AGPC managing director Okechukwu Mba said: “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.
“We conservatively estimate that the gas from AGPC will be enough to generate electricity for more than 5 million people.”
The new funding for the ANOH gas processing plant has come from a consortium of seven banks, that includes Stanbic IBTC Bank, United Bank for Africa, Zenith Bank, FirstRand Bank, and others.
According to Seplat, if required, the funding will give an additional $60m accordion at the time of completion to fund an equity rebalancing payment at that time.
The gas processing project is targeted to begin production in the fourth quarter of 2021, as per a statement from the Nigerian energy company in November 2020.
The ANOH gas processing plant has been designed to feed the Eastern, Western and Northern gas pipeline systems. It is expected to help Nigeria to speed up its transition from small-scale diesel generators to cleaner, less expensive fuels like natural gas for generating power.
Seplat CEO Roger Brown said: “The ANOH development is one of the government’s Seven Critical Gas Development Projects and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer.
“It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation.”