Banks to lend USD 2 billion for NLNG gas project

Banks to lend USD 2 billion for NLNG gas project

The Nigerian Liquefied Natural Gas (NLNG) to borrow USD2 billion from Nigeria banks to finance it USD10 billion Train 7 gas project. GT Bank and Zenith Bank are among the indigenous banks to provide the loan. However, shortfalls on the loan will be from foreign lenders and export credit agencies.

The project is estimated to cost USD7 billion and USD3 billion for the installation of pipelines and equipment. The gas capacity should be in the range of 22 to 30 million tonnes per year. The aim is to meet China's need for natural gas. It is expected that the project will last for five years. At the end of the project, a boast of FDI is guaranteed. It may also provide 10,000 jobs for Nigerians citizens.

A joint venture consortium of SCD Group will work on the gas project. This group included Deawoo, Saipem, Chiyoda and Nigerian Liquefied Natural Gas (NLNG). Further, for the USD2 billion loan from commercial banks, Guaranty Trust and Sumitomo Mitsui Banking Corporation will play the financial advisory role.

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