Seplat Petroleum Development Company Plc (NSE – SEPLAT) has announced that its Incorporated Joint Venture (IJV), the ANOH Gas Processing Company (AGPC), has successfully raised $260m in debt to fund completion of its ANOH Gas Processing Plant (ANOH).
The $260m financing was provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited.
The 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, is being built by AGPC, which is an IJV owned equally between Seplat and the Nigerian Gas Company (“NGC”), a wholly owned subsidiary of Nigerian National Petroleum Corporation (“NNPC”) according to the statement from Seplat.
Seplat and NGC have previously provided a combined $420m in equity funding and the project is now fully funded.
AGPC construction cost has been lowered through cost optimization programme according to Seplat. The cost is now expected to be no more than $650m, inclusive of financing costs and taxes, significantly lower than the original projected cost of $700m.
ANOH is expected to help Nigeria to accelerate its transition away from small scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
Okechukwu Mba, Managing Director of ANOH Gas Processing Company said that “the gas from AGPC will be enough to generate electricity for more than 5 million people.”
Seplat is a leading provider of natural gas to Nigeria’s power sector, supplying around 30% of gas used for electricity generation. :
Roger Brown, Chief Executive Officer of Seplat, said: “Completing the funding of ANOH is an important milestone for AGPC.” He added that “Seplat will continue to diversify its business and invest in gas to help Nigeria develop its own natural resources, which in turn will drive more sustainable social and economic growth for a young, rapidly growing population.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
