CAIRO, Egypt — African Export-Import Bank (Afreximbank) has executed a project preparation facility financing head of terms with UTM Offshore Ltd., under which the bank will part-finance activities designed to progress an FLNG project in Nigeria to bankability, according to a July 7 Afreximbank news release.
This deal marks Afreximbank’s ongoing support in leading UTM’s fundraising efforts to secure the necessary investment required for the projects’ implementation. This project is the first FNLG project developed by an African-owned company on the continent.
UTM is undertaking the development, design and construction of an FLNG facility with an LNG nameplate production capacity of 1.2 million metric ton per annum and a storage capacity of 200,000 cu. m, as well as ancillary facilities to be located 60 km from the shore of Akwa Ibom State, Nigeria.
The bank said this project has economically transformative potential, establishing trade-enabling infrastructure that will allow Nigeria to pivot from a crude oil export-based economy to a gas-based processing industrial economy in turn unlocking significant development impacts.
Afreximbank will provide end-to-end solutions. During the pre-investment stage, the project preparation facility will be deployed to de-risk the project and rapidly progress it toward bankability. In addition, under the PPF, 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.