The African Export-Import Bank (Afreximbank), has executed a project preparation facility financing head of terms with Nigeria’s UTM Offshore, with the bank set to partially finance Nigeria’ first floating liquefied natural gas (FLNG) facility.
Under the terms of the agreement signed on July 7, 2022, the bank will finance activities designed to drive the project towards bankability, and has been appointed mandated lead arranger and lead in syndicating the debt raise, demonstrating Afreximbank’s commitment to bringing Nigerian gas projects online.
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Representing the country’s first FLNG project as well as the first wholly developed by an African company on the continent, the Nigerian FLNG will have a nameplate capacity of 1.2 million tons per annum and storage capacity of 200,000 cubic meters.
Utilizing gas from the Yoho gas field owned by global energy major ExxonMobil and the Nigerian National Petroleum Corporation, the project is expected to not only increase the country’s domestic capacity but paves the way for a just energy transition while opening up socioeconomic opportunities.
