Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
forex
Advertisement
Stanbic IBTC
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Energy

Seplat raises $260 million to complete ANOH project

Seplat has announced that it has raised $260 million to fund the completion of its ANOH Gas Processing Plant.

Published

on

Seplat has announced that it has raised $260 million in debt, through its Incorporated Joint Venture, the ANOH Gas Processing Company (“AGPC”), to fund completion of its ANOH Gas Processing Plant (“ANOH”).

This is contained in a disclosure issued to this effect, and signed by the company’s Group Secretary, Mrs. Edith Onwuchekwa and made available on the website of the Nigerian Stock Exchange.

READ: NNPC GMD says AKK pipeline, Nigeria’s biggest gas project is 15% complete

What you should know about ANOH plant

  • ANOH is one of Nigeria’s most strategic gas projects and will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
  • 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”).
  • The US$260m funding 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.
  • It allows for an additional US$60m accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than US$450m were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.
  • Following a cost optimisation programme, the AGPC construction cost is now expected to be no more than US$650m, inclusive of financing costs and taxes, significantly lower than the original projected cost of US$700m.

READ: Crude oil and gas export hits $355.93 million, as pipeline vandalism increases 

What they are saying

Okechukwu Mba, Managing Director of ANOH Gas Processing Company said:

  • “Successfully closing the US$260 million debt facility means that the ANOH project is now fully funded. 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.”

READ: GenCos urge NBET to pay up N1 trillion debt 

Roger Brown, Chief Executive Officer of Seplat, said:

  • “Completing the funding of ANOH is an important milestone for AGPC. 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.
  • “We are extremely proud to partner with the Nigerian Gas Company in this strategically important project, which will create jobs and prosperity in the Nigerian economy. 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.”

Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

1 Comment

1 Comment

  1. Oye

    February 4, 2021 at 11:38 pm

    The ability of the gas to deliver power is not in doubt. What is in doubt is the ability of the transmission company to transmit it and the discos to distribute it. Otherwise all this talk of the gas providing enough electricity for 5million homes will just be a castle in the air!!

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Energy

Siemens Power deal: FG to collaborate with Egypt

Nigeria is set to collaborate with Egypt towards a total overhaul of the power grid and distribution systems.

Published

on

FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

President Muhammadu Buhari ordered the Ministry of Power to work with the Egyptian government on an effective rollout of the  Presidential Power Initiative with German engineering company Siemens AG.

This was disclosed by Mr. Aaron Artimas, Special Adviser, Media and Communication to the Minister of Power,  in a statement in Abuja on Monday.

The Special Adviser revealed that the Minister of Power, Mr. Sale Mamman, disclosed this in a meeting with the  Egyptian Ambassador to Nigeria, Mr. Ihab Awad, citing that the FG wants to learn from Egypt’s successful implementation of a power upgrade with Siemens AG.

READ: Plan to overhaul Nigeria’s Power grid attracts investors – Siemens

“The President had reasoned that obtaining more information from Egypt will enable Nigeria to maximize our agreement with Siemens, towards the total overhaul of our power grid and distribution systems,” he said.

The Power Minister said that the FG would leverage on Egypt’s rollout programme also and added that both countries would also collaborate on renewable energy, and improving other sectors of the electricity value chain.

What you should know 

  • Nairametrics reported that the FG  and Siemens AG have signed a contract for the pre-engineering phase of the Presidential Power Initiative.
  • In 2018, Siemens, Elsewedy Electric, and Orascom Construction launched a 14.4 GW  project under 30 months including the largest combined cycle megaprojects in Beni Suef, Egypt.

Continue Reading

Energy

TCN hits power transmission of 5,615.40MW

The TCN has broken its own transmission record twice in the space of a week.

Published

on

TCN MD Abdulaziz, four other directors receive appointment letters

The Transmission Company of Nigeria (TCN) announced that it hit another record milestone on transmission, as it recorded a national peak of 5,615.40MW.

This was disclosed in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN, on Tuesday in Lagos, she added that the TCN hit the record on the 28th of February.

The TCN added that the transmission was distributed at a frequency of 50.20Hz by 9.30 pm of the same day, as the TCN has broken its own transmission record twice in the space of a week.

READ: TCN: Minister of Power shares FG’s plans with new management

“Also, on Feb.26, 2021, TCN equally transmitted a new Maximum Daily Energy of 116,891 14MWH which is higher than the previous value of 116,121 42MWH achieved on Feb. 25, 2021 by 769.72MWH,” the TCN said.

Mr Sule Abdulaziz, Managing Director, TCN, said the company would remain focused on its goal to complete ongoing projects and undertake new ones as it strives to put in place a robust transmission and, despite challenges posed by vandalism and insecurity.

What you should know 

  • Nairametrics reported on March 1st that The Transmission Company of Nigeria announced it has broken its transmission record once again, after hitting a record of 5,584.40 MW.

Continue Reading
Advertisement




Advertisement

Nairametrics | Company Earnings