Afreximbank (African Export-Import Bank) has executed a head of terms with Nigerian company UTM Offshore to part-finance a floating LNG facility off the Akwa Ibom state, in southeastern Nigeria. The partnership has raised an initial sum of US$2bn for the first phase with a commitment for US$3bn for the second phase. UTM will undertake the development, design, and construction of the 1.2 Mt/year (1.6 bcm/y) FLNG export facility, which will also have a storage capacity of 200,000 m3, as well as ancillary facilities. It is the first FLNG project developed by an African-owned company on the continent.
During the pre-investment stage, the project preparation facility will be deployed to de-risk the project and rapidly progress it towards bankability. In addition, the bank will be appointed as mandated lead arranger and lead in syndicating the debt raise, with the ability to incorporate credit enhancements if required.
Nigeria is Africa’s second largest natural gas producer after Algeria with 42 bcm produced in 2021 (of which 23 bcm were LNG).
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