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Afreximbank, Nigeria agree deal for $200 million LNG project

Published

1 year ago

October 19, 2023

Nigeria has signed an agreement targeted at funding the nation’s $200 million Liquefied Natural Gas, LNG project, with African Export-Import Bank, Afreximbank.

The deal for the proposed LNG project, located in Bayelsa State, was reached at the ongoing African Energy Week, AEW, in Cape Town, South Africa by Afreximbank and the project promoters – AlphaDen Energy and Oilfield Limited— aimed at the building of a 20 million standard cubic feet per day gas processing facility.

According to the terms of the deal, Afreximbank would contribute 70% of the money, leaving 30% for the project’s promoters.

The project will be constructed at the Obama flow station, which is located in Oil Mining License OML 63. It will have the ability to produce 294 barrels per day of oil condensate and 405 million tonnes of LNG per day.

The Federal Government’s initiatives to commercialise or monetize vast gas reserves for usage in businesses, residences and the transportation sector, according to AlphaDen Energy Executive Chairman, Pascal Anyanwu, were the inspiration for the ground-breaking project.

He stated: “We have been encouraged by the Nigerian Content Development and Monitoring Board, NCDMB, to execute this important project. We are one of the 100 companies being encouraged by the Board to grow. We believe that every little step that we take will help make contributions towards the energy independence of this continent.

“This event marks a significant day in this journey, and hopefully there will be more that will follow in these footsteps as we follow those before us.”

On his part, NJ Ayuk, Executive Chairman of the African Energy Chamber, also commended the agreement, regarding the development as a ” fantastic time for Africa and Nigeria. It would significantly contribute to utilising enormous amounts of gas for growth.

“We all believe that gas is going to play a leading role in how we develop Africa’s energy security. This is going to be a 45 billion Naira ($60 million) energy facility that will be developed by an African company. On behalf of the African Energy Chamber and Afreximbank, we salute you.”

Related Topics:Afreximbank and Nigeria Featured Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.